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Eating out, movies, air and train travel to cost more from April 1?
The cost of services is seen rising as the tax rate increases from 14% to 17-18% if GST is implemented from April 1, 2016
Zee Media Bureau
New Delhi: The Goods and services Tax, once implemented, is likely to make the cost of services charged in restaurants, telephony, train or flights tickets, beauty parlours, gyms etc. more expensive.
GST will replace all the other other indirect taxes like the central excise duty, value added tax, service tax, octroi, luxury tax etc. with one tax rate of 17-18%.
As per a Hindustan Times report, a panel headed by chief economic adviser Arvind Subramanian has suggested a ‘standard rate’ of 17-18% on most goods and services.
Also Read: GST: Key highlights of CEA Arvind Subramanian Panel recommendations
Also Read: Ficci welcomes panel report, says GST to add 2% to GDP
Quoting Saloni Roy, senior director, Deloitte (India), the report added that services will see rise in prices as the tax rate will increase from 14% to 17-18% once GST is implemented.
The government plans to roll out Goods and Services Tax (GST) from April 1 2016. A Constitution Amendment Bill on GST is currently stuck in the Rajya Sabha due to differences among the political parties.