While GST will be good for the economy, people may have to shell out more for services as the GST rate is more than the current service tax, which is just 14.5 per cent.
If the standard GST is rate is fixed at 18 per cent, it could lead to a small increase in taxes paid for services as we currently pay only 14.5 per cent tax on services.
Services which will be taxed more include telephone bills, restaurants, financial solutions, banking, air travel, healthcare, lodging, laundry, gym, etc.
Consumers will end up paying more for goods in sectors which are availing concessional VAT rates and the goods manufactured by small companies which do not come under the purview of excise duty.
If the standard GST is rate is fixed at 18 per cent, it could lead to a small increase in taxes paid for services as we currently pay only 14.5 per cent tax on services.
Services which will be taxed more include telephone bills, restaurants, financial solutions, banking, air travel, healthcare, lodging, laundry, gym, etc.
Consumers will end up paying more for goods in sectors which are availing concessional VAT rates and the goods manufactured by small companies which do not come under the purview of excise duty.
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