Plan to go on a date? Find out if GST will burn a hole in your pocket

The new tax regime which was called good and simple tax by PM Narendra Modi during his speech at the midnight launch, will bring in a lot of changes in our life. One such change you will come to terms with is when you are out on a date and are about to pay the bill. Service tax is no more, it is time to pay goods and services tax (GST).

If you are planning to go out for a movie or for dinner date or figuring out a place to go for a quick weekend trip, then it is important to know what alterations GST will bring to your plans.

Fine dining

The tax reform in India has brought the restaurant industry under two higher tax slabs of 12 and 18 percent for non-AC and AC, respectively. 5-star hotels will be even more expensive as the GST rate will be 28 per cent.

Restaurants will also have to produce different bills for liquor consumption as alcohol is not included in GST. Each state may have different VAT figures for liquor and this may add to operational challenges and increase the cost of compliance.

Date Night

If you want to catch up on Salman Khan’s new release Tubelight with your date, then you will have to shell out 28 percent on movie tickets besides the ticket price. One respite could be finding theatres where ticket prices are Rs 100 because that will attract only 18 percent GST. This decision was taken by the GST council after the entertainment industry had expressed its displeasure regarding the peak 28 percent tax. So, a little research on BookMyShow could result in a romantic night without being too heavy on your wallet.

Planning a short holiday trip

To make it an affordable holiday opt for the economy class while flying as GST Council has lowered the tax rate for economy class flight tickets to 5 percent. On the other hand, business class tickets will attract a higher tax at 12 percent.

For a budget stay, select hotel rooms that are below Rs 1,000 as there will be no tax, while for those between Rs 1,000 and Rs 2,500, GST will be 12 percent.

“Long drive pe chale”

If nothing seems to be working, then simply book a cab and go on a long drive. GST has brought cab aggregators in the 5 percent tax slab. A decrease by 1 percent from the previous tax of 6 percent which was charged on transport services.