GST, now a popular three letter word on various social media platforms, is India’s, new baby. Since its implementation in mid-2017, many people have never stopped wondering how it will eventually affect the everyday life of an ordinary citizen and day-to-day business operations. Goods and Service Tax (GST) is a one-tax policy meant to eliminate numerous indirect taxes in the country. It puts different products, services, and commodities in five main tax categories, including 0, 5, 12, 18 and 28 percent.

GST continues to bring several changes in everyday life of a common man, especially on spending patterns. If you didn’t know, here is how Goods and Service Tax will affect our daily lives, based on the case of India:

Food: A Basic Human Need

GST has come with a lot of good news when it comes to consumables. Generally, the cost of breakfast has significantly gone down. The tax rate for many breakfast items has reduced, including coffee, tea, and flakes. Low tax rates will equally bring down the prices of fruits, milk, and vegetables. Bottom line, food will generally be cheaper than before.

GST, now a popular three letter word on various social media platforms, is India’s, new baby. Since its implementation in mid-2017, many people have never stopped wondering how it will eventually affect the everyday life of an ordinary citizen and day-to-day business operations. Goods and Service Tax (GST) is a one-tax policy meant to eliminate numerous indirect taxes in the country. It puts different products, services, and commodities in five main tax categories, including 0, 5, 12, 18 and 28 percent.

GST continues to bring several changes in everyday life of a common man, especially on spending patterns. If you didn’t know, here is how Goods and Service Tax will affect our daily lives, based on the case of India:

Food: A Basic Human Need

GST has come with a lot of good news when it comes to consumables. Generally, the cost of breakfast has significantly gone down. The tax rate for many breakfast items has reduced, including coffee, tea, and flakes. Low tax rates will equally bring down the prices of fruits, milk, and vegetables. Bottom line, food will generally be cheaper than before.

Costlier Morning Routines

While prices of soap and tooth powder will be down, you will have to spend extra money on toothpaste, shaving creams, razors, and aftershaves. For many, these are indispensable items. It is pretty difficult to live everyday life without them.

Ready-Made Clothes

Clothing is another basic human need. It goes hand in hand with food and shelter. In post GST, ready-made garments are going to be cheaper. With zero VAT and excise duty, you can now buy your favorite collections at a relatively low price. However, you will have to spend additional coins on footwear and personal grooming. Popular personal grooming items have seen a 2 percent increase in tax rate. These include perfumes, shampoos, eyelashes, wigs, and hair creams.

Cars and Traveling

You have all the reasons to smile if you are planning to buy a car in the future. GST has come with reduced tax rates on small vehicles, including sedans. Their prices will significantly go down in the near future. Uber customers are also favored. Goods and Service Tax has brought the tax rate down from 6% to 5%.

Airfares have also been affected. Economy class travelers will now pay less as business class traveler digs deep into their pockets. Same with air travel, train travelers will feel the impact. Those using sleeper coaches will continue to pay the same rates. However, AC coach travelers now have to spend more than the previous amounts.

Eating Out & Entertainment

Unlike before GST, you will now spend less on a regular night out. Regular restaurants have witnessed a significant tax reduction by 4 percent. It implies you will now pay less for food and drinks while in these places. However, there is an exemption. Dining at a 5-star outlet will cost you more than the amount you used to pay in the pre-GST era. Like the five-star restaurants, movie theatres, televisions, and other entertainment options have also become more costly.

Health and Education

The cost of primary healthcare, drugs, and contraceptives is not affected by GST. However, the tax rate for insurance premiums has soared from the previous 15% to 18%. Like primary health, GST will not affect education. The prices of essential school items will remain unchanged. In fact, other items will even become cheaper, including geometry boxes.

Like every other new concept, GST cannot benefit everyone. It has its pros and cons based on some individual factors. For tax, payroll, accounting, and bookkeeping services choose Weaccountax online cheap accounting services. Our experts are passionate about helping small businesses, and we will be happy to serve you.