From Dinner outside to Credit Card bill Payments, How can GST Impact you

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GST(Goods and Services tax),the country's biggest tax reform since Independence, will be rolled out from July 1. The historic Central Hall of Parliament will host a midnight function on June 30 to launch the new tax regime.

Subsuming a large number of central and state taxes into a single tax, GST would pave the way for a common national market. From the consumer's point of view, the biggest advantage of GST would be in terms of reduction in overall tax burden on goods. Service, depending on their nature, have been placed under four tax rates of 5 percent, 12 percent, 18 percent and 28 percent.

Some services will get costlier as financial services and telecom have been put in the 18 percent GST slab. Education and healthcare will continue to be exempt from taxation.

"The impact of GST on service sector in the short term could be inflationary as the tax rate would immediately shoot up to 18 percent.however, going forward to it, it is expected that due to reduced cost, due to availability of GST credit on other items is not available, the price of services will come down which will benefit the consumers," said Sandeep Sehgal, director-tax and regulatory at Ashok Maheshwary & Associates LLP.

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