The GST Council has decided to give you and other consumers a major relief from taxes. The GST Council has cut tax rates on 178 items. Only 50 items have been left behind in the 28% GST slab. The GST Council has taken a major decision. Only sin and demerit goods have been left behind in the 28% GST slab.
Demerit goods are those goods whose consumption is discouraged. The remaining goods have been shifted to the 18% GST slab.
The cut in GST rates are a major relief to you and other consumers and of course...businesses. Want to know more on tax planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.
To get the latest news on insurance please download WealthDoctor App Now!
Yes...178 items have been shifted from the 28% GST slab to the 18% GST slab. This is going to make a number of items of daily use...cheap. Let's take a look at some of these items which will become cheap after this shift.
SEE ALSO: India GST Rates in 2017
If you love chocolates, there's reason to smile. Cocoa products, chocolate, chewing gum, non-alcoholic beverages, coffee, custard powder and wafers have been shifted from the 28% GST slab to the 18% GST slab.
If you are the beauty conscious kind, this news will make you jump with joy. Skincare products, hair dye, shampoo, shaving cream, polishes, soap, detergent and washing powder, razors and blades, aftershave, mattresses, leather clothing, wigs, artificial fur, dental hygiene products, creams and deodorants have been shifted from the 28% GST slab to the 18% GST slab.
SEE ALSO: GST: Everything you need to know
If you are looking to construct a house, there's reason to smile. Items used in construction like granite, marble, slate, mica, plaster, ceramic goods and glassware/sanitary ware have been shifted from 28% GST slab to 18% slab, making your house construction cheap.
Tyre tubes for bicycles and three wheelers/autos, plywood furniture and wallpaper will become cheap after being shifted to the 18% GST slab from 28% GST slab.
You will soon find batteries, goggles and wristwatches cheap. These have been shifted from the 28% GST slab to 18% slab.
SEE ALSO: How GST affects your love life?
Your favorite pasta, condensed milk, refined sugar, curry paste will become cheap after being shifted from the 18% GST slab to 12% GST slab. Food items like dried vegetables and sweet potatoes, dried/frozen fish and coconut shell will be reduced from 5% to 0%.
If you want to decorate your home with handicrafts, here's some good news. Bamboo/cane furniture, knitted hats, jute and cotton bags will become cheap after being shifted from the 18% GST slab to 12% GST slab.
If you spend a lot of time in hospitals and your medical bills are running high, there's reason to smile. Diabetic food, medical grade oxygen, spectacle frames have been shifted from the 18% GST slab to 12% slab.
If you are the kind who likes eating out, there's reason to smile. If you dine at an AC restaurant, you are charged an 18% GST. In a non-AC restaurant, it's a GST of 12%. Restaurants enjoy an input tax credit (ITC), which is a facility to set off the tax paid on inputs with the final tax.
But, restaurants have not passed this benefit to customers. Finance Minister Arun Jaitley has removed the input tax credit benefit for restaurants. A uniform GST of 5% will be charged for all restaurants, irrespective of AC or non-AC. However, 5 star restaurants which charge more than Rs 7,500 a day as room tariff, will fall in the 18% GST slab, but will enjoy input tax credit.
The Government wants to help small and medium enterprises in India, which are facing a huge tax compliance burden under GST. The GST Council has increased the threshold of the composition scheme from Rs 1 Crore to Rs 1.5 Crore on annual turnover.
A uniform tax rate of 1% will be charged under the composition scheme which allows you a quarterly filing of returns and payment of taxes.
You can heave a sigh of relief. Only luxury and demerit goods are left behind in the 28% GST slab. You will find pan masala, aerated water, cigarettes, cement, paints, ACs, perfumes, washing machines, refrigerators, vacuum cleaners, cars, two-wheelers, yachts and aircrafts in this slab. Be Wise, Get Rich.
The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.
Subscribe to our Youtube Channel
Hello friend! I am your personal financial advisor. By the end of this interactive session, I will help you to plan yours and your family's finances to ensure a better future.