Tax rates under GST: The gains and losses for the Indian middle class

It's only less than a month left until Goods and Service Tax (GST) sees the light of the day. India's biggest tax overhaul crossed its final hurdle last week when GST Council agreed to tax gold and silver jewellery at 3 per cent tax rate.

Tax consultant in India

With GST to be implemented from July 1, it's the ideal time to check if your monthly budget will be affected under the new tax regime. We've put down a list of goods and services that will become cheaper or costlier once GST comes into force.
Gold: GST Council has fixed the tax rate of the precious metal at 3 per cent. GST Council on June 3 created a new tax bracket for gold, diamonds and silver. The current excise duty on gold was 1 per cent and 1 per cent VAT in many states. With 3 per cent GST, Gold is set to become costlier July onward.
Insurance: Premiums are set to rise on car, health and and term insurance with the government. Currently, insurance is taxed at 15 per cent. Under GST, this would go up to 18 per cent.
Banking Charges: Transaction fee on various banking and financial services are expected to go up as GST will tax these services under 18 per cent tax rate from the current 15 per cent.
Hotel Bookings: GST on hotel services will depending on the kind of room you stay in. If the room tariff is less than Rs 1,000, your stay will be tax free. However, if the room tariff is between Rs 1,000 - Rs 2,500, you'll be taxed 12 per cent. It the tariff is between Rs 2,500 to Rs 5,000, the stay will be taxed at 18 per cent. For luxury hotels, where the tariffs are more than Rs 5,000, GST rate of 28 per cent will be applicable.
Eating Out: There are different tax slabs for restaurants depending on their turnover and whether they have air-conditioning or or not.
Restaurants with a turnover of less than Rs 50 lakh will be levied a tax rate of 5 per cent.
Non-AC restaurants will be charged 12 per cent GST on food bill. Tax rate for AC restaurants and those with liquor licence will be 18 per cent, whereas restaurants in 5-star hotels will attract a GST rate of 28 per cent.
While ordering food from your neighborhood non-AC joint may get a little costly under GST, eating out in AC restaurants is set to become cheaper as the current tax rate includes 5.6 per cent Service tax and 14 per cent VAT in some states.
Telecom Bills: Your mobile and internet bills are expected to rise once GST comes into force. Currently, there is a 15 per cent service tax on telecoms services. Under GST, the tax rate applicable will be 18 per cent. The industry, which is already stressed with the launch of Reliance Jio, is expected to pass on these charges to customers.
Movie Tickets: During a GST Council meet in Srinagar, Finance Minister Arun Jaitley had said movie tickets in cinema halls will be taxed at 28 per cent.
Currently, there is service tax on cinema and states have separate entertainment taxes. Maharashtra levies more around 50 per cent entertainment tax on movie tickets. In Uttar Pradesh (UP) entertainment tax is around 30-40 percent.
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You may consult with the Tax Consultant in India/ Tax Advisor in India for any kind of help. 

GST to Ease Loan Access for Millions Of Firms Using Digitalised data.

The new unified indirect taxation in India system, which is scheduled to be implemented later this year, will bring in millions of unorganized businesses on one platform. This would effectively, Nilekani believes, help them get loans
Nilekani pointed out, though the country has over 60 million businesses, fewer than one million are incorporated and only a few thousand are listed. A digital trail through GST would help these firms get access to formal credit at a much lower cost, which would help more small enterprises get into the formal economy.
Nilekani headed the empowered group on information technology infrastructure on GST in chartered accountant firms in mumbai.
“Digitisation is the basis for credit and credit becomes the attractive reason for businesses to enter the formal economy,” he said, adding that ‘India’s formal economy is small and only 7per cent of the India’s employment is in the formal sector.

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Budget 2017 - Push or Pull To Digital Economy

There are not many changes in current indirect taxation in India regime as GST is proposed to be rollout on 1stJuly, 2017. Hon’ble Finance Minister in today’s speech, said that IT system is on schedule for GST implementation and several teams of tax officers are also working tirelessly to give finishing touch to the Model GST law and rules and other details.

This budget has been welcomed by the whole industry. The Sensex jumped immediately after the speech was over. Digital economy budget will be a right move for the future growth of the economy. With more & more digitalization, India would have new taxpayers & better transparency in system. Every stakeholder from a small shop to a big corporate is pushed towards the digital economy. Government has pushed the digital theme in every area of the budget which is a nice effort.
Therefore, this Budget of 2017 is not a pull, but a push to Digital economy. Our government is determined to lay a beautiful foundation of digital economy in chartered accountant firms in Mumbai.

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Education, healthcare to be out of GST

Tax consultant in India

Education, healthcare and pilgrimages will continue to be out of service tax net even under the goods and services tax (GST) regime as the Centre is against giving any shock in the first year of the rollout by bringing in new services. Besides making a strong case to the GST Council for not touching services that are out of tax net currently, the Centre will also pitch for keeping concessional rate for services like transport at the current level, revenue secretary Hasmukh Adhia told PTI in an interview.
The GST Council, headed by Union finance minister Arun Jaitley and comprising representatives of all states, is scheduled to meet in Srinagar on 18-19 May to decide on rates various good and services will be charged in the new indirect tax regime that is being targeted for rollout from 1 July. Adhia said the endeavour would be to maintain the current tax incidence on a commodity or service at the same level in the new GST regime.
GST will subsume central levies like excise duty on manufactured products and service tax on rendering of services as well as state VAT on sale, to make for a national sales tax that will be levied at the time of consumption of a product or service.
Adhia said the approach for the GST rollout would be to avoid any shock in the first year and any review for inclusion of a service or change in rate could be done in the second or third year of the implementation based on revenue realisation. “Our entire purpose will be that we don’t upset anything that is there now. We will try to do some smooth landing. So we will recommend to GST Council that whatever is the existing exemption list for service tax they should continue because we cannot do too many things at the same time,” he said.

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Implementation of GST will expand Indian economy by 1%

Service tax consultant in Delhi

According to Mr. Prashant Kumar, Additional Commissioner, Service Tax, Mumbai-I informed GST holds the potential to make Indian products improve compliance, globally competitive and contribute to the expansion of the Indian Economy by at least 1% of GDP.
On March 20, 2017, the Union Cabinet approved 4 crucial GST bills, viz. CGST, iGST, UTGST and the Compensation Bill. These Bills are expected to be tabled in parliament shortly as Money Bills.

The Government is all set to roll out crucial GST on July 1, 2017.

GST is a major step towards streamlining various Union and State indirect taxes and will help in speeding up the transportation of goods and services between various states.
One of the key promises of GST is the ability to data mine the vast information which will be collected by the government.

This will help the Government to ensure strict enforcement of rules and regulations and go after defaulters and tax evaders. 

Source: http://bit.ly/2nOwH84
http://www.narendramodi.in/media-coverage/534811

Tax Refund to Exporters GST within Seven Days.

The department of revenue has promised to refund tax claims of exporters within seven days under the new GST regime, thus addressing a major concern of the sector, Commerce and industry minister Nirmala sitharaman said today.

The minister also said that exporters would get interest on the refund if it is delayed beyond two weeks.

Exporters have been demanding an into  exemption from payment of taxes under the goods and service tax consultant in India (GST) regime arguing that delay in refunds often takes months and also results in blocking the working capital. They also stated that exports need to be encouraged in view of the global slowdown. The minister recently raised the issues of exporters in the GST council meeting.  The concern of the exporters was that the refund should not take too long, She told reporters after chairing the meeting of the council for trade development and promotion here today.

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