The Gain and Losses – Tax Rates under GST

Tax Rates under GSTWith less than a month left for the GST (Goods and Service Tax) to see the light of the day, it has finally crossed its final hurdle last week. GST council has agreed to cap the Gold and Silver jewelry at 3% tax rate.

Government will be implementing the GST from 1st July, 2017 and this is the right time of the year to check how your monthly budget will be affected under this tax. Here are few things that will become costlier or cheaper after 1st July.

Tax Rates under GSTGold

The GST council has finally capped this precious metal at 3% tax. On June 3, GST council created a new tax bracket for gold, silver and diamonds. While the current tax on these precious metals was 1% along with 1% VAT, it will be increased to 3%. With this rise in tax, Gold is set to become costlier.

Banking charges

Now users will be required to pay banking charges as the GST is set to increase the service tax from 15% to 18%. Customers will be required to pay 20 to 25 rupees per transaction after withdrawing money from their own bank ATM more than 4 times.

Insurance

If you are planning to insure your health, car or want to invest in term insurance, get ready to pay more money. GST is set to increase the current insurance tax at 15% to 18%.

Hotel Bookings

You will be required to pay GST, depending on the room type. If you have booked a room that had cost you less than Rs 1000, you are not required to pay any tax. But if the room tariff is between 1200 to 2500, you will be charged 12% tax. Similarly, if the room rent is more than Rs. 4000, the tax levied will be 18%. For luxury hotel, where you are required to pay more than Rs. 5000 for a room, the applicable GST would be 28%.

 

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