GST rates: Be prepared for an expensive IPL outing next year
The GST council on Friday did away with the single rate of 15 percent tax levied on all taxable services and brought in a multi-tiered service tax structure. Under the new structure, services have been divided into four slabs of 5 percent, 12 percent, 18 percent and 28 percent and taxation levied accordingly.
While most services were largely unaffected, some have seen a minor impact. Here is a list of things that just got cheaper and costlier thanks to the GST rates.
Get these services for cheaper
Despite being categorised under highest tax slab of 28 percent, cinema tickets are going to be cheaper. Goods transport, travel in AC coaches in trains, economy class in flights and using services provided by cab aggregators will be marginally cheaper. Work contracts, business class travel will mostly remain unaffected or see a very minimal dip in prices.
Services that will cost you more
Think twice before you buy that IPL ticket or enter those race clubs. Betting at race clubs will cost you more now with tax of 28 percent being levied. Telecom services will also be a wee bit expensive but the government believes that despite the tax rates being high at 18 percent, input tax credit may keep the prices same. The same goes for financial services. Getting that Chartered accountant to help you with your taxes just got costlier, so did banking.
Services that will cost you the same
Since education and health care were exempted from the slabs proposed by the council, no impact or change will be seen when you visit a hospital or look for admissions in educational institutions. Local train travel will also have no impact. No taxes at restaurants that have an annual turnover of Rs 20 lakh but 12 percent tax on non-AC restaurants, 18 percent tax on AC restaurants that serve alcohol and the 28 percent tax on star hotels will make little difference to customers who will end up paying pretty much the same as now.
While GST rates for most goods and services have been projected, the council will meet on June 3 to discuss taxes on gold and precious metals.