After months of speculations, Goods and Service Tax (GST) has come a step closer to reality. GST Council on Thursday decided on tax rates for 1,211 items. The government has set a target of July 1, to rollout the new tax regime.
During the GST Council meet, which was chaired by Finance Minister Arun Jaitley, it was decided that the food items which currently attracted an average of 12.5% tax under VAT laws will now be taxed at 5% under the new regime.
Similarly, entertainment activities, household and personal care products will become cheaper under the upcoming regime. On the other hand, most of the services like mobile phone services, healthcare and transportation which are currently charged at the rate of 15% will cost more, as these are expected to attract 18% tax under the GST regime.
So, with the new rates coming into effect, your monthly budget which includes essential items will also get affected.
Sharing with Zeebiz, Archit Gupta Founder & CEO, ClearTax, decided to do an analysis of how GST will affect your monthly budget.
If you look at the table, one thing which is clear is that your monthly expenditure is going to come down. In this example, you will be able to save Rs 2000 per month.
This article was originally published in Zeebiz.com
