The Goods and Service Tax (GST) has been a key announcement. It has caught the attention of the markets considering its implications on earnings of companies. A large number of items have been kept under the 18 per cent tax slab by the government.
Eating out at small restaurants and dhabas, hiring a cab or staying in a non-5 star hotel will be cheaper under the new Goods and Services Tax regime. Sectors such as education, public health and transport would be exempt.
Here we provide you with a table for your convenience where you can easily check what will cost more and what would be cheaper.
|Service||GST rate||High and low|
|Cabs like Ola, Uber||5%||Lower|
|Metro, local train||0%||No change|
|Non-AC train||0%||No change|
|Air economy class||5%||Lower|
|Air business class||10%||Lower|
|Entertainment and leisure|
|Dhabas (With annual sales under Rs50 lakh)||5%||Lower|
|AC restaurants, bars||18%||Lower|
|Hotels with tariff|
|Up to Rs 1,000/day||0%||Lower|
|Above Rs 5,000/day||28%||Higher|