GST…The Goods and Services Taxes is buzz word now a days, with lot of confusion to the common man. We as ladies generally manage the household budget, there should be a clear picture that with this new tax reform our savings will increase or expense will further go up. So, this article is GST guide for Moms.

In one line GST sounds complicated but it’s not, and the end target is to ease end consumers life. Yes surely some things might get costlier but more or less there is not much change. There are four tax slabs at 5%, 12%, 18% and 28%, as suggested by the GST council.

Let’s start with Basic as per Maslow’s hierarchy of needs “food, cloth and shelter:”

GST guide for Moms: Food-

Things like cereals, flours, fresh fruits and vegetables do not come under GST, they are exempted. In dairy products, sugar, tea and coffee powder there is no significant rate change.

For eating out, GST rate depends on how big the restaurant is, how many start, Air-conditioning, turnover of the restaurant etc. for Small and medium restaurant’s the tax slab has gone down however for 5 star hotels it has gone up to 25%. It means the government has decided to take out more from the pockets of those who can afford.

GST guide for Moms: Clothes and Footwear-

Readymade garments in the upper 12% bracket where as Apparels below 1000Rs. Are in the 5% tax bracket.

Most of the women are fond of shoes, we need to have the heels, the floaters, the casual, the flats, the sandals, the sneakers, the ballerinas the list can go on and on. So here it is for footwear worth up to Rs.500 at the lowest tax slab of 5% and footwear costing more than Rs.500 is fixed at the higher 18%.

With GST coming in the discrimination will be waved off like for GOLD. In pre-GST era the gold in Maharashtra and Delhi was taxed at 2.2% excise and VAT, so with GST Gold will getting costlier in these states and getting cheaper in Kerala as it was 5%. Now with GST coming in the flat rate of 3% will be applicable nationally.

Toys and sports equipment’s:

Not very good for kids though, electronic toys, gaming consoles and even board games will be charged at 28%. The toy manufacturers are still fighting to get some tax relaxation at least in traditional toys like carom, chess etc.

One important sector being exempted from GST is healthcare and education services.

GST guide for Moms: Real Estate-

Affordable housing schemes as well as under-construction projects will come under 12% Slab. Under-construction projects might marginally bring down prices in the affordable segment.
For ready to move in projects and Rent or lease either residential or commercial might see a price hike with GST pitching in.

While electricity bills is exempted from GST, water charges will come under GST rate, although with some concession rate. Phone bills will go up with GST applicable at 18%.
For well-maintained housing societies, if the monthly maintenance charge is more than 500 Rs. Then the applicable GST slab will be 18%.

This is what I have understood, hope this clears the confusion about GST and about the things that matters to us. So, in crux this is GST guide for Moms. This tax reform is largest post-independence and is at a very nascent stage. With the motto of one country one tax, it will put us at par with nations with more structured tax systems.

It will bring uniformity thru out the nation, undoubtedly there will be some losses and confusions in initial years, but if in a long run it is good for the country as told by many financial and tax experts, I am ready to take that pain. Everyone has to contribute in building a healthy nation. Are you ready?

Happy Parenting with Budding Star …!!


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About Ujjwal Mishra

I am residing in Noida with my husband and two lovely kids. I am a software engineer by qualification and an HR consultant with having more than 12 years of corporate experience. And the life that's been such a Rollercoaster, I finally found solace in writing and started writing blogs.

I write mostly about mom in modern times and their tryst with career and family. Hope on this platform I encourage other fellow parents.

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