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A gong sound at midnight in Parliament’s central hall will mark the switchover to GST. It will kick in from July 1, ending more than 11 years of hectic confabulations among the Centre and the states shepherded by several Union and state finance ministers, and withstanding testy relations often marked by political brinkmanship.
GST: What could get costlier, what could get cheaper
Here’s how prices of goods could move after the new GST rates kick-in from July 1, 2017.
Cheaper Meals?
A restaurant bill now is a complex jumble of food costs, taxes on food and alcohol and services, cesses and service charges. After GST, you may expect eating out to be cheaper as a single tax will replace a welter of levies.
Costlier Calls
Your phone calls may become costlier. Phone bills will likely attract an 18 percent GST rate compared to the current 15 percent (including cesses).
Also Read: GST impact: Full list of cars, bikes that will become cheaper from tomorrow
Free state-borders
GST will subsume most state local levies, including the entry tax or octroi. Trucks will be able to move across state borders without queuing up for long hours to pay taxes. Municipalities and local bodies, however, can continue to collect local taxes. Brihanmumbai Municipal Corporation have, however, lifted the entry taxes for entering Mumbai after GST.
Costlier Services
Currently most services are taxed at a standard rate of 15 percent; these will turn costlier as the standard service tax rate is expected to go up to 18 percent.
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