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Tax rates under GST, The gains and losses for the Indian middle class.
It's only less than a month left until Goods and Service Tax (GST) sees the light of the day. India's biggest tax overhaul crossed its final hurdle last week when GST Council agreed to tax gold and silver jewellery at 3 per cent tax rate.
With GST to be implemented from July 1, it's the ideal time to check if your monthly budget will be affected under the new tax regime. We've put down a list of goods and services that will become cheaper or costlier once GST comes into force.
Gold: GST Council has fixed the tax rate of the precious metal at 3 per cent. GST Council on June 3 created a new tax bracket for gold, diamonds and silver. The current excise duty on gold was 1 per cent and 1 per cent VAT in many states. With 3 per cent GST, Gold is set to become costlier July onward in company registration in India.
Insurance: Premiums are set to rise on car, health and and term insurance with the government. Currently, insurance is taxed at 15 per cent. Under GST, this would go up to 18 per cent in company formation in India.
Banking Charges: Transaction fee on various banking and financial services are expected to go up as GST will tax these services under 18 per cent tax rate from the current 15 per cent
Insurance: Premiums are set to rise on car, health and and term insurance with the government. Currently, insurance is taxed at 15 per cent. Under GST, this would go up to 18 per cent.