NEW DELHI: India is just hours away from the big
GST roll out and the big question on everyone's minds is, 'Where will I have to shell out more tonight?'
Well, at quite a few places.
Dining outIf you are dining out tonight, and settle your bill past midnight, your bill will reflect the GST instead of the service charge. In other words, this means a higher headline rate compared to the current service tax of 6% (after discounting for taxes on food) and VAT.
Catch GST launch live updatesHowever, the government insists the tax component will not pinch your pocket any more than before, and says the service charge levied by hotels will be a constant.
Take a cab late nightIf you book a cab before midnight but end your ride past midnight, you will pay according to GST rates.
Check out from a hotelGST will replace service tax and local taxes (like luxury tax) on hotel bills settled any time after June 30, even if you checked in days before. But if you booked and paid in advance for your hotel stay in July, you will not have to pay GST.
Shop online past midnightQuite a few articles will cost more if you shop online after the midnight GST roll out. So it makes sense to book your order today itself. The government has decided to not insist on e-tailers like Amazon and Flipkart deducting taxes in making payments to vendors, sparing them a complication.
FlyingIf you're planning to fly away for a vacation, you are likely to pay slightly lesser for economy class flights tickets under the GST regime as the tax incidence comes down to 5 per cent from 6 per cent currently. However, if you travel business class, fares are likely to go up as the tax would increase to 12 per cent from the 9 per cent currently.
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GST Highlights