GST 2.0: GST 2.0 is going to be implemented across the country from 22 September. The direct benefit of this big change will be seen on the pockets of common people. Now only 5 percent GST will be levied on services like salon, gym, spa and yoga classes. This will be without input tax credit (ITC)
GST 2.0: GST 2.0 is going to be implemented across the country from 22 September. The direct benefit of this big change will be seen on the pockets of common people. Now only 5% GST will be levied on services like salon, gym, spa and yoga class. This will be without input tax credit (ITC). That is, earlier 18% GST had to be paid on these services, now due to less tax, your membership and bill will become cheaper than before.
How will the prices become cheaper
For example, if your monthly charge of gym is Rs 1,000, then after the implementation of GST, it used to be Rs 1,180. Now in the new system, the same charge will be reduced to Rs 1,050. Similarly, earlier Rs 590 was spent on salon service of Rs 500, but now only Rs 525 will have to be paid.
Why was this change made
According to GST Council Finance Minister Nirmala Sitharaman, this big decision has been taken to simplify the tax structure. Now GST will be divided into only two main slabs, 5% and 18%. Apart from this, a special rate of 40% will be applicable on luxury and sin goods. The old 12% and 28% slabs have been abolished.
This change will bring relief to the common customers as their everyday fitness and beauty services will now become affordable. At the same time, businessmen will also get an easy tax system. The government says that this is a historic Diwali gift, which will not only reduce inflation but will also boost consumption and economic activities. That is, from September 22, the burden on your pocket will be lighter and enjoying the service will be easier.
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