With an aim to bring uniform taxation across the country, Goods and services tax (GST) has been implemented from 1st July 2017. Its effects will be seen on everything, including our daily routine of shopping, traveling via cab, and dining out. The tax has replaced VAT and current excise tax.
Like every other tax , this one too has few benefits and limitations for the consumers. Every industry and consumer will witness the changes and here is how this tax will affect women and related products.
Cab Rides: Transport services have been included in the lowest bracket of 5 percent under GST which were being taxed at 6 percent earlier so enjoy your rides at lesser price.
- Kitchen items
There will be a mixed impact on the items used in the kitchen. The government has kept basic food products like fruits, vegetables, wheat, rice, break, lassi, salt, pulses and food grains out of GST. Good news for all non-vegetarians as chicken will get cheaper.
The government has applied moderate taxes on shopping of clothes. The garments above Rs 1,000 will attract 12 per cent tax compared to the 5 per cent earlier. Footwears below INR 500/- is at 5% and above INR 500/- at 18%. So clothes will be little expensive but how does that matter because when it comes to fashion we never check price tags.
• Going out for a meal
Now you will have to think before choosing a restaurant, as dining out will be expensive under GST. In the GST system, two categories are made AC and non-AC. In AC restaurants the price of tax will drop from 20.5% to 18% and in non-AC restaurants, it will be 20%. In 5 star hotels, the tax will be 28%. So now you have to choose wisely.
Sadly, one of the most important things for all ladies has become expensive due to GST. Before GST consumers were paying only 2% of tax, now they have to pay 6%. This will for sure affect the buying of jewellry.
• Cosmetics and skin care products
Makeup products are necessary for ladies! We all love to buy different makeup products. Different taxes have been levied on products, Post GST a tax of 18% will be applied to products such as toothpaste, shampoo, and soap. Skin care products will be charged with 28% tax. Perfumes and makeup products will be charged 28% and sanitation will be charged with a tax of 12%.
• Online shopping
Most of your online shopping will get expensive now as under the GST, they will collect tax at a fixed rate of 1 per cent while paying to the sellers listed on their websites . Your goods will reach you faster as the retailers will not have to file a separate paperwork for each state. But the most sad part is that there be less of discount codes and vouchers in future because they will attract an additional tax.