GST: Watching movies, hotel stay to get cheaper, the complete list
GST has been touted as the biggest tax reform since Indian Independence. The rollout is set for June 30 midnight and from July 1 onwards, life sure will be different.
For instance watching a movie on a single screen will be cheaper when compared to a multiplex. If you are planning a get away, then post July 1 would be the right time since the price of economy class flight tickets will come down slightly.
Let us take a look at this list of what will be cheaper and costlier:
- Single screen theaters will be cheaper as GST on movie tickets reduced on tickets below Rs 100 to 18 per cent as opposed to the earlier 28 per cent.
- Tickets above Rs 100 normally paid at multiplexes will attract GST at 28 per cent.
- Tickets above Rs 100 in UP, Mumbai and Bengaluru to be cheaper as current entertainment tax stands at 60, 45 and 30 per cent respectively. Tickets above Rs 100 to be dearer in Delhi as existing tax rate is at 20 per cent.
- Economy class tickets on flights to be cheaper under GST regime as tax incidence comes down to 5 from 6 per cent.
- Travel by business class to go up as tax would be increased from 12 to 9 per cent.
- Stay at mid-market luxury hotels to be cheaper. Threshold for the 28 percent tax bracket has been increased to Rs. 7,500 from Rs. 5,000. This means that an 18 per cent GST will be levied on rooms with tariff between Rs. 2,500 and 7,500.
- From July 1, hotel room rates less than Rs 1,000 will be exempt from
- tax. Room rates in the range of Rs 1,000 and 2,500, the tax incidence would be at 12 per cent as opposed to the current range from 10 per cent to over 25 per cent.
- City travel would be cheaper, Ola and Uber will be taxed at 5 per cent as opposed to the current 6 per cent.
- Condoms and contraceptives will continue to attract zero tax under GST.
- Grooming products will be costlier as it would attract higher tax at 28 per cent under GST. The current range was between 22 and 26 per cent.
- Footwear costing up to Rs 500 will be taxed at 5 per cent down from the current 9.5 per cent tax.
- Footwear above Rs 500 range will attract 18 per cent down from the current 23.1 per cent to 29.58 per cent.
- Man made clothes up to Rs 1,000 will attract 5 per cent tax, lower than the existing 7 per cent while those costing above Rs 1,000, will continue to attract 12 per cent.