GST: Gamble or Good

2
981
GST: Gamble or Good
GST: Gamble or Good

The onset of the GST regime on 1st July, 2017 was supposed to remove barriers to trade and make goods and services cheaper. But what we’ve seen so far seems to belie all faith and publicity that this news generated initially. Well, there is a massive drop in GST tax in India, but did this drop drew a hole in your pocket. Read on to find out.

Drop in Hotel, Restaurant GST tax rates

Basic things like food and sanitary napkins became luxury for mango man (aam aadmi) after the implementation of this indirect tax. Under GST all goods and services are taxed at 0%, 5%, 12%, 18% and 28%. That left every Indian calculating, whether this tax has done some good for our Janta Janardhan or not. We believe the mango man took too much time to understand this taxation process, as before they settled into the situation, the government has come up with a new rule.

Well, this rule talks about GST on hotel bills…there is a stark drop in GST on hotel bills from 18% to 5%…Did that bring a smile on your face? Hold on…You must be thinking this will make your meals cheaper and tastier…You were too quick to rush to that conclusion because this change does not change the taste of your fad food.

Did Restaurant Bills drop?

If you go by what is happening across the nation you will come to believe that flavour is surely missing from your hotel bills. Soon after this rule came into being there was no change or marginal change in the hotel bills in the Capital of the Nation, Delhi. In the Garden City of Bengaluru people didn’t see any changes either, in their hotel bills. Moving on to the commercial Capital, Mumbai…People saw a difference, which left them wondering about their “Achhe Din

2 COMMENTS

  1. Thanks for this this really help me alot. Great work by ITR team it really nice to explaing everything about taxes. Under GST all goods and services are taxed at 0%, 5%, 12%, 18% and 28%. thanks sir, your blog help me to understand why hotel & Restaurant include gst and how many. your all blog are very helpful & full of knowledge.

  2. GST is applicable mainly for businesses and hence won’t directly affect the salaried class and self-employed professionals such as doctors, lawyers etc. However, it will impact their expenses due to the change in rates of goods and services they avail. Other than that, they will continue to pay their income tax like before. The medical sector has been exempted from GST. After reading this article most of my doubts about GST are clear now. Well written.
    Can you provide me the GST rates of different products?

LEAVE A REPLY

Please enter your comment!
Please enter your name here