The biggest tax reform in India GST is all set to favor the need of the taxpayers in the country from 1st of July 2017. The major reform is undoubtedly going to affect the taxpayers for all the services they will be buying after 1st of July 2017. The goods and services tax which is popularly known as GST has several rounds of discussions. The latest reports that are coming from the finance ministry now defines as what are the services that are going to be affected much by this new tax slab. Earlier there were many different taxes that were imposed on the buyer for buying different product and services, now the government has decided to replace it all with a single tax known as Goods and Services Tax.
The latest briefing for the GST is as follows; as earlier education and healthcare sector will be continued to be exempted from taxes whereas telecom sector, business class air travel, insurance and sale of newspaper space for advertisement charges will go up after the imposition of GST. Coming to the transport section, the services will be taxed at the rate of 5 percent, which will witness to a small drop of a percent which was earlier 6. Along with this non-AC train travel, including in local trains and metro, as well as religious travel including Haj Yatra will remain exempted from GST. The tax will be applied at the rate of 5% to cab aggregators like Uber and Ola. The telecom industry is going to witness the biggest change by GST implementation. The non-AC restaurants will charge 12 per cent GST on the food bill.
The tax rate for AC restaurants and those with a liquor license will be 18 per cent, while 5-star hotels will charge 28 per cent GST. GST is also going to affect the hotel stay charges, those charging per day tariff of Rs 1,000 will be exempt from GST. The rate for hotels with a tariff of Rs 1,000 to Rs 2,000 per day would be 12 percent, while those with Rs 2,500 to Rs 5,000 would be 18 per cent, whereas GST for hotels with tariff above Rs 5,000 will be 28 per cent. So, these are few of the services that are going to be affected by GST implementation much. Now, let’s see how GST implementation is going to affect the country’s economy.
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