The Lok Sabha has finally Passed the Goods and Services Tax Bill and it is expected to have a significant impact on every industry and every consumer. Apart from filling the loopholes of the current system, it is also aimed at boosting the Indian economy. This will be done by simplifying and unifying the indirect taxes for all states throughout India.
Let us have a look a few things that will be influenced by the GST.
What will be expensive
Dining out will be expensive. Here’s an example explaining how –
In a restaurant, say a consumer spends Rs.100. Currently, you pay an average of 18.5% as service tax and VAT. So apart from the service charge, you usually shell out Rs 118.5.
Now, according to GST, it’s expected that the rates can be fixed at 18 to 20%.
Accordingly, at 20% approximate tax rate, your bill will be 120 rupees.