With GST and its new tax slabs right around the corner, accountants across the country will be looking to make hay while the sun shines. Customers and businesses, therefore, need to be aware of exactly which prices are going to be impacted.
GST rates are in four slabs—five, 12, 18, and 28 percent—and this will include all State taxes.
At 18 percent, a 300-basis-point increase from the current 15 percent, services are set to become more expensive. The new system hopes to curtail graft in the long run, making the tax system more efficient. Cigarettes, alcohol, and healthcare are among the things that are going to cost more, come July 1. While the details of exactly which goods and services in healthcare will become more expensive are yet to be revealed, what is clear is that the burden is going to fall on the salaried classes.
Here’s a list of what else is going to cost you more:
- Education: Although the details are not yet out, private education services and goods bought in schools are going to become more expensive.
- Telecom services: Your WiFi will cost more and your phone’s data charges are only going to go up.
- Insurance: Renewal premiums could increase by five to 10 percent.
- Housing: Thanks to the Real Estate (Regulation and Development) Act, the cost of purchase of a house is expected to go up marginally.
- Banking: Expect an additional charge for cheque clearances.
- Transportation: Ticket prices for public transportation will cost more. Even private transport is expected to increase costs to make up for the GST preparation.
- Soft drinks: In a good move, all aerated drinks are going to be more steeply priced.