Common man’s pocket will be filled with GST 2.0
The Modi government has given a big gift to the common man before Diwali. After the income tax exemption in the budget, now the government has made a big change in the GST slab. The GST Council has minimized 4 tax slabs that have been running for a long time and converted into two tax slabs. Earlier, GST of 5, 12, 18 and 28 percent used to apply GST of only 5 and 18 percent on the goods. Along with this, a special slab has also been kept at 40 percent, but only Sin Goods, Luxury Goods and harmful ITIMES have been kept in it. In such a situation, there is a need to know what will be the effect of this change on the common man and how much money will they save?
Rajesh works in a private firm in Delhi and he gets a salary of 80 thousand rupees from there. With these money, he runs his family (Rajesh, wife and two children). Rajesh gives 10 thousand rupees in the rent of the house. While spend 20 thousand rupees on the grocery used in the house. The good thing is that in the changes made in GST, most of the daily needs have been reduced from 12 percent to 5 percent.
There will be more items in Grocery’s basket
Rajesh spends Rs 20,000 on the grocery over his family. GST used to take 12 percent on the first grocery items. Understand this that earlier the goods of 100 rupees used to be 112 after GST, now after 5 percent GST, the same goods will now be available for 105 rupees. In such a situation, there will be a benefit of 7 rupees directly on 100 rupees. In such a situation, Rajesh will directly benefit from Rs 1400 in a month and if we talk about the whole year, then in a year Rajesh will be able to save Rs 16,800 on Grosri.
Eating food in restaurant will also be cheaper
In the restaurant, food items will now be charged 5 percent GST in place of 18 percent. In such a situation, if Rajesh eats 5000 rupees with his family in the restaurant in a month, then he will directly benefit 650 rupees. In such a situation, Rajesh will now be able to save 7800 rupees in the whole year. The biggest advantage of this will be that the restaurant industry which was struggling with declining demand due to expensive tax will be able to get speed again.
Rules on film ticket and popcorn
After the new GST slab of the government, it will be cheaper to watch cinema in single-screen theaters. In fact, earlier 12% tax was levied on tickets worth up to Rs 100 or less, but in the new GST slab, it has been reduced to GST with 5% ITC while no changes have been made on tickets worth more than Rs 100. On watching the film in PVR, GST will still be used with 18% ITC.
Last year, when the GST Council met, the central government imposed separate tax on popcorn in three categories, due to which there was a lot of confusion. This time the ministry has removed the confusion on popcorn tax. Salt packets, labels popcorn will now be replaced by 5 percent GST in place of 12 % GST. In such a situation, if Rajesh spends 2000 rupees a month with his family, then there will be a direct benefit of Rs 140. In such a situation, there will be an benefit of 1680 rupees throughout the year.
Walking and traveling by flight will also be easy
After the new GST slab, now you will be able to spend more time with your family and the country will be able to visit the world. After the new GST slab, air travel will also get the benefit of low taxes. In the new system, there will be 5 percent GST in the place of 12 percent in the ticket of economy class. At the same time, business class tickets will be taxed at 12% instead of 18%. In such a situation, if Rajesh goes to visit with his family once a year and spends 50 thousand rupees, then there will be a direct benefit of 3500 rupees.
Festival will not have to wait to buy clothes
After the new GST slab of the government, buying clothes will also become cheaper. Earlier, 12 percent GST was imposed on clothes, which has now been reduced to 5 percent. In such a situation, if Rajesh spends 20 thousand rupees on clothes on his and family every two months, then he will get a benefit of 1400 rupees. In such a situation, they will get an advantage of 8400 rupees every two months. Under the new change, shoes and slippers up to Rs 2500 will come under the tax net. Earlier, 5 percent GST was levied on goods up to Rs 1000, while the goods above it were taxed at 12 percent.
Expenditure will also have to be reduced on medicines
A big decision on medicines was also taken in the 56th meeting of GST Council. Now two tax slabs of 5 percent and 18 percent have been approved in the meeting. Not only this, 12% GST implemented on 33 life saving medicines has been removed and zero. GST has been zero on cancer medicines. In such a situation, if Rajesh spends 5 thousand rupees every month on the family, then there will be a direct benefit of 350 rupees every month. In such a situation, if we talk about the whole year, the medicine will benefit 4200. These are all the expenses that a common family does. In such a situation, after the new GST change, such a family seems to get a big relief. If the savings in the whole year are added, then there can be a direct savings of about Rs 42,380.