GST 2.0: A day in the life, with new fiscal regime.
NEW DELHI: Even if you're not a GST Registered taxpayer, his daily life irrevocably changed on July 1, 2017, when the new indirect tax regime of India came into force, which changed the tax premise from the source or origin to the destination. As the fiscal regime completes two years of operation ( GST 2.0 ), let's see how it affected companies and our daily activities.
A good start: Well, it certainly became cheaper to maintain personal hygiene with both soap and toothpaste attracting a lower tax slab post- GST implementation - from 27% to 18% each. Shampoos, which initially became expensive when GST was implemented - with their tax increasing from 24-25% pre- GST to 28% - saw them coming under the 18% tax ultimately, while women's personal hygiene products like sanitary napkins, which initially came under the 12% slab under GST, compared to 13.68% in the pre GST regime, are now in the 0% slab, thanks to the issue becoming a political hot potato for the Modi government.
Getting ready Well, power dressing has become a costly affair after GST rollout, depending on whether the shirt, blouse or saree you were less than Rs 1,000 or more than that. Considering that most branded apparels are priced way above Rs 1,000, you end up paying 12% tax as against 2% tax earlier. Shoes, though, became a bit cheaper - while before GST, they attracted a tax of 21%, if priced above Rs 1,000, which most branded footwear is in any case, post GST, the tax applicable slab is 18%.
Eat and eat outside: Well, unless you are buying wheat from the farmer and making the flour out of it, your parathas made from branched wheat flour are now more expensive, by 5% - compared to the previous one, which was 2% and that too, implemented in some states. Of course, if you wish to save some money, you could buy unbranded flour or rice. As for your love life, depending on which state you live in, you are either paying more or less because of GST - while movie tickets in states like Punjab and Rajasthan did not carry any entertainment tax pre GST and thus became expensive by 28 %, followed by a reduction to 18%, in states like Jharkhand, a multiplex ticket is far more affordable, given that the state charged 110% entertainment tax before July 1, 2017.
Dining out - unless you're the one who will be seen in five star establishments, in which case you can certainly afford the 28% GST - has become progressively cheaper, with stand-alone restaurants falling in the 5% tax slab. That's an improvement from a tax bill - such as the 14.5% VAT, along with the 14% Service Tax, not to mention the cesses on them - which were added to the bill in the pre GST era.