GST to apply from 30 June 2017 midnight

The new era of taxation

As GST is going to be imposed , so it is the final time to know WHAT IS GST ALL ABOUT?

The goods and services tax (GST) regime is going to be kicked in with Narendra Modi style. A special session of Parliament, all chief ministers in attendance, a gong going off at midnight.

GST is a destination-based tax levied on consumption, which replaces all other indirect taxes(VAT, swaach bharat cess). The tax is levied and paid when a consumer buys something. The tax is levied on every transaction in the supply of goods and services, barring certain exempted items. The tax levied at one stage can be set off or deducted from the tax to be paid at the next stage.

India has a dual GST. This means that the single rate set for a good or service has two components – a Central GST (CGST) and a State GST (SGST).

From July 1, India will move to a one-tax, one-nation regime. All goods and services will be taxed at 0 percent, 5 percent, 12 percent, 18 percent and 28 percent wherever they are purchased. It will have 4 slots as mentioned above.

Late dining
If you are planning an outside dinner or a date at night and if you pay bill at midnight, you will get GST attached to your dining bill. So you will have to pay a higher tax. Service charge levied by hotels will be a constant.
Taxi
You will have to pay GST instead of VAT from midnight.

Hotel stay
Hotel bills settled any time after July 1, even if you checked in days before, will change. GST will replace service tax and local taxes such as luxury tax.

Online shopping
If you are waiting for a sale to kicked on Amazon or Flipkart

Alcoholic drinks, electricity and five petroleum products. These will continue to attract VAT and central excise. The petroleum products have been excluded only temporarily.