Soon after the arrival of GST in India, it would not be wrong to say that everything in the country has changed. Yes, this indirect tax regime is best known for bringing a lot of tax -related changes, hence has made the taxation system simpler. Commonly known as Goods and Service Tax, this consumption based indirect tax is basically charged on sale, manufacturing and consumption of goods and services at the national level.
From a common man to the riches, this indirect regime is affecting the lives of many, hence is always in talks. Now that we are talking about this indirect taxation system, how can we forget the GST slabs . Yes, there are different slabs under which the government has put various products and services. So, let’s just get more clarity on the same in the article below:
An Overview on Various GST Tax Slabs in India
No Tax
Goods:Well, there are certain goods on which no tax will be levied such as sanitary napkins, silver, fruits, vegetables, bread, salt, natural honey, bangles, etc.
Services: Hotels and lodges whose tariff is below Rs.1,000
5%
Goods: Fish fillet, tea, spices, pizza bread, coffee, coal, fertilizers, ayurvedic medicines, agarbatti, etc.
Services: Small restaurants with transport services like airways and railways, takeaway food, ACs and non- ACs restaurants who serve liquor, etc.
12%
Goods: Butter, Cheese, Ghee, fruit juices, namkeen, medicine, instant food mix, photographs, mirror, etc.
Services: Business class air tickets
18%
Goods:Chocolates, detergent, hair shampoo, shaving and after shaving, water heater, washing machine, televisions, vacuum cleaners, wrist watches, cookers, etc.
Services: Restaurants inside hotels with tariff of Rs.7,500 and above, outdoor catering, IT and telecom services, etc.
28%
Goods: Pan masala, sunscreen, dishwasher, weighing machine, paint, cement, etc.
Services: Five-star hotels whose actual staying bill should be above Rs.7,500
Now that you know the different slabs, let’s just move on further and talk about the impact of this indirect tax on various services in the article below:
Impact of GST
The moment this indirect tax came into existence, it has made some goods and services cheaper while others just take out more from the pocket of a common man. Let’s just take a look, i.e. how GST slabs in India are affecting various sectors such as the financial sector.
Let’s Checkout the Impact of Goods & Service Tax on Loans
Personal Loan: Talking about PL, usually, the processing fee is the one, wherein the service tax is levied. But now a standard GST is applicable. Let’s understand this thing with an example below:
Suppose, on a loan amount of Rs.9 Lakh, the processing fee could be Rs.9,000-18,000 (1%-2% of the loan amount) along with a service tax of Rs.1,350-2,700. Now, if we add all that, the fee ranges between Rs.10,350-20,700 in the pre GST scenario. But soon after the implementation of this indirect tax, the processing fee would jump to Rs.10,620-21,240.
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