While industry is happy with the passage of the GST, the common man should be a little worried. Here is what gets more expensive for him or her, if the GST is implemented, which is likely from April 1, 2017.
Eating out is going to get expensive, as service tax would be subsumed by the GST. So, instead of paying 15 per cent that you are paying now, you would be paying 18 per cent. Be prepared to dine out less.
Mobile Phones and laptops
The GST rate is presently 18 per cent, while the duty on products that are manufactured is 400 basis points lower.
This will make things like mobile phones and laptops more expensive.
The Sin Tax in the GST, a tax this is levied on products like alcohol and cigarettes will make both of these expensive.
In fact, the sin tax on cigarettes is proposed at 40 per cent in the GST Bill.
As GST is implemented, the tax rate on tickets could double, making them more expensive.
Insurance policies will cost more as service tax would be subsumed by the GST, which would hike the same by 3 per cent.
Mobile Bills too would go up as the GST rate of 18% is more than the present service tax.