How will GST affect your festival shopping plans?
Posted on: 15/Sep/2017 4:29:40 PM
With the festival season fast approaching, you are probably planning to fill your shopping carts and bag amazing discounts and offers. However, the hindrance you are probably going to face is the Goods and Services Tax.
The manufacturers are retailers are striving to bring similar discounts like previous years in spite of the introduction of GST.
So, here is how your shopping plans for this festive season is going to affect you:
Understand GST
GST primarily aims at sorting out all the different taxes – direct and indirect – and introduce a single tax structure for goods and services. This will however have a few exceptions though. Apart from introducing a single tax structure all over India, it is also offering a full tax credit through inputs and capital goods procurement.
There are different tax slabs introduced under GST: 5%, 12%, 18% and 28% apart from exempt and extra cesses category.
Spend more on sweets and chocolates
In this festive season, you may have to spend more towards sweets and chocolates as there is 5 percent GST on sugar.
Gold and jewelry
It is a very common practice to buy gold ornaments during festive season. For buying gold, there will be 3 percent tax and for making charge, there is extra 3 percent. For gold coins and bullions, there will be 3 and 18 percent rate respectively.
Apparels
The GST on apparels ranging lesser than Rs 1000 is 5 percent. And those above Rs 1000 are imposed with 12 percent. In this festive season, you will have a straight product discount. Retailers might not be giving tout buy one get one offers as it will not let them get input tax credit facility for products of zero value.
Cars and bikes
There is dip in price of cars in the luxury segment and SUVs. Recently, the government had proposed introduction of 25 percent cess rate that may soar car rates of high end models.
Gadgets and home appliances
When you have plans to purchase a brand new high end phone or any home appliance, there may not be hefty discounts this time. With GST, however, there is 2 to 3 percent hike in tax on electronic items as compared to the previous tax system.
With GST, the festive season is all set with discounts rather than usual Free offers.
