Impact of GST rates on your Household Budget; Who won, who lost?

Yes yes, GST rates are here! India has cleared the way for the biggest tax reform since independence in 1947.

The main beneficiaries of the new goods and services tax, due to be rolled out on July 1, include steelmakers and some consumer goods.

  • The food items which currently attracted an average of 12.5% tax under VAT laws will now be taxed at 5% under the new regime.
  • Entertainment activities, household and personal care products will become cheaper under the upcoming regime.
  • 18% tax slab for telecom, financial services.
  • Service tax on non-AC hotels will be 12%, on AC hotels that serve liquor will be 18%. Higher tax rate for luxury hotels.
  • Hotels and lodges with tariff below Rs 1,000 will be exempt. Those with Rs 2,500-5,000 will be 18%. Luxury hotels will face tax of 28%.

Impact on E-Commerce:

  1. E-commerce players to deduct 1% tax at source before paying suppliers. E-retailers such as Flipkart and Snapdeal to pay GST.
  2. 5% tax to be levied on cab aggregators like Ola and Uber

Here is the snapshot of the impact of GST rates on your household budget:

GST Rates Impact




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2 thoughts on “Impact of GST rates on your Household Budget; Who won, who lost?

  1. The ABC of Reverse Tax:

    It is a forced liability on A to pay on behalf of B what is anyways not due, to C, who is anyways not supposed to collect it.

    Here A stands for a poor GST registered dealer, B stands for the unregistered but legally exempt dealer, and C stands for the Govt.

    It appears to be a ghost charge….He pays who does not have to pay, on behalf of he who is not mandated to pay, to the account of he who is not supposed to receive….HELP…!!

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