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GST: So what will change after midnight?

NEW DELHI: India is just hours away from the big GST roll out and... Read More
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?'

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Well, at quite a few places.

Dining out

If 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.

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However, 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.
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Take a cab late night

If you book a cab before midnight but end your ride past midnight, you will pay according to GST rates.

Check out from a hotel
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GST 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 midnight

Quite 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.
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Flying

If 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.

Click here to get GST Highlights

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