GST, we all have been hearing this word quite a lot for last few weeks. If you still don’t know what it stands for, here it is, Goods and Services Tax. This new tax reform is an indirect tax levied on the supply of goods and services. Precisely, this new tax scheme is expected to improve government’s revenue. The cool part of the GST scheme is its rate structure which has only 4 slabs: 5%, 12%, 18% and 28%. What is the effect of GST for teens?
Teen point of view
The tax rates have always been a mystery to most of the teens. Menu card would show a rate but the final bill will be lot more because of a cluster of taxes that are added in the name of VAT, service tax, Kalyani tax, Access tax, and so on. Now teens would find it a lot easier to comprehend, as there is only tax to account for.
1. Movie buff
The cinema ticket prices have risen up as they fall under the 28% tax slab. Since the price cap for movie tickets are different at different states, even the GST differs from state to state. Movie ticket price after GST: Chennai- ₹155; Hyderabad- ₹250; Bengaluru- ₹300; Mumbai- ₹400
You don’t have to regret anymore for paying service tax, that too for a restaurant where it is self-service. VAT and service taxes are now replaced by GST. The GST rates differ from state to state. However, it is predominantly within 18% slab comprising of 9% to SGST (State GST) and 9% to CGST (Central GST).
Check your bills before you pay!
Apart from GST bill shouldn’t claim for any other tax.
Clothes above ₹1000 would come under 12% tax slab. Anyway if you can afford to buy a cloth priced above ₹1000, the 12% additional tax on it wouldn’t matter much. So, for every thousand rupees above one thousand, ₹120 has to be paid as tax.
Petroleum crude, natural gas, diesel, and petrol are all out of the GST framework. The petrol and diesel prices have dropped down since the GST reform. This can save at least ₹50/month of our pocket money. However, the amusement parks are put under the 28% tax slab. The already reducing crowds to amusement parks might further more go down considering the hike in prices. They are already far from the cities, considering the travel expenses, their tax slab could have been lowered.
5. Stationery Junkie
Just like milk, curd, vegetables, petrol even stationery items should have been put off the GST frame. But, stationery goods fall under 12% tax slab just like clothes, which include pencils, pens, crayons, etc. Under GST, school bags are considered as a luxury good and so taxed 28%. This may not drill holes in the pockets of teens, but their parents’!
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