GST (Good and Service Tax) – One Nation, One Tax, will start rolling officially from July 1, 2017. Being such a vast tax regime, its difficult to understand the changes in each sector, hence here are the major sector-wise changes that will most importantly affect the youth of the country.
- Movies
The tax rates on cinema tickets vary differently in different states on the basis of Entertainment Tax in each of the places. Earlier the tax rates were 28%, but now the tax rates are made 18% for the tickets that cost Rs 100 or less. For the tickets that cost Rs 100 or more, the rate is still 28%. Now if you are from states like Jharkhand or Utter Pradesh, you are going to pay less for the tickets. But if you are from Assam, Himachal Pradesh, Punjab and Uttarakhand, you will have to pay more for the tickets as earlier these sates had 0% Entertainment Tax.
- Travelling
Travelling via Uber or Ola cabs will be cheaper from July 1, as the tax came down to 5% from 6%. Renting vehicles from rental services will also attract 5% tax.
Traveling by A.C. and first-class via trains is going to be expensive, as the tax has increased to 5% from 4.5%. The non- A.C. traveling options like local trains, metro or religious travel is still with no tax.
Talking about the air travel, economy class air travel will be cheaper as tax is made 5% from 6%. The business class is going to be costly as earlier it was 9% but now will be charged 12%. In comparison to the stopover flights in international travel, the GST has made direct flights to international destination costlier.
- Eating outside in restaurants
Everyone loves to eat outside. But after the GST regime, you’ll think twice before going out with your friends, as now the AC restaurants will charge 18% tax whereas the non-AC restaurants will charge 12% tax on food bills. 5-star hotels are going to be more costly as the tax there will be 28%. The restaurants with Rs 50 lakh or less turnovers will be charged 5% GST, making it cheaper to eat at these small neighborhood stores.
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Customers who are used to buy online have to think again for the same now as the discount offers are ought to be decreased in various e-commerce sites as more the offers, more the tax will get attracted. Talking about the refund policies, the tax on cancellation is approximately 18%, so the refund and cancellation policies will be more strict and tough. But the GST regime has taken a positive step in favor of the shoppers as the delivery will tend to be faster as paper work is being reduced.
- Job opportunities for Youth
Since GST will affect the business working making it a difficult task, its believed that 11% job increase is expected in different sectors of the economy like automobiles, logistics, home décor, media and entertainment, cement, banking, finance and other service sectors.
In sectors like consumer durables, pharmaceuticals and telecommunication, the job creation opportunities are expected to decrease resulting in job loss. The reason behind this is increase in prices due to GST.
