See how GST changes your plans for your home!
It has only been a week and the brand new Goods and Service Tax, commonly known as GST, has been creating ripples in Indian tax economy. For a country that’s identified for its most unique and precious Unity in Diversity policy, Indian taxing system has been complexity at its best. But now, Indian government with all its efforts has launched GST to ease a common man’s way in to the tax payment system.
Starting from July 1st 2017, GST has been a game changer in many aspects. It surely didn’t leave even a single stone unturned. Let us now see how GST is going to change your plans for your home.
If you are a home owner and are living in a housing society with maintenance charges more than 5,000 INR a month, GST brings not so good news for you. From the moment of implication, GST results an increase from the existing 15.5% to a precise 18%.
It is clear from the hike in the taxations on ply wood and other wooden products, Furniture is going to empty your pockets a little more than it did before. When the VAT was of an average of 4 to 5% on wood pulp and wooden items, GST pushed it up to 12%.
Even the electrical home appliances are going to increase your tax burden by 2 to 3% as GST finalised its effect on electrical appliances such as fridge and washing machine at 28%. However, the paint industry remains a little less affected. No significant changes were noted in the price of paints.
The final verdict can be understood as home maintenance is going to be a bit more heavy on your pockets than before. But, as they say all is well that ends well. Though GST might be hard on you when it comes to home maintenance, the fact that it makes your tax payment more efficient and easier can surely not be ignored.