Health and healthcare, credit card bill, ISI mark helmet and insurance premium will become expensive after the commencement of Goods and Services Tax (GST) from July 1. Credit card companies, banks, and insurance companies have also started alerting customers by sending messages in this regard.
Pratap C. Reddy, Chairman, Apollo Hospital said that due to the taxation of 15-18 percent tax on some services and products, the overall healthcare cost may increase after GST. It is another matter that health care has been set free from taxation in the new system. Reddy said that it is true that there is no GST for the area. However, some services and products have been kept in the tax scam of 15 to 18 percent. In this way, after the GST, the expenses of hospitals will increase up to two per cent. If the actual rise is so, then the hospital is in a position to bear this expenditure. More than this, the expenses will be put on patients.
Banks such as Standard Chartered and HDFC are also sending messages related to GST to customers. ABI Card and ICICI Prudential Life Insurance have also informed the customers about GST. Financial Services and Telecom have been placed in the slab of 18% GST. At present, the customer is paying 15 per cent service tax on such services. GST will be charged at the rate of 2.25 percent on premium payment of endowment policy. Now customers pay 1.88 per cent service tax on such policies.
helmet producers’ organization ISI Helmet Manufacturing Association (ISHMA) has said that keeping the helmet in the 18 percent GST slab will hurt the industry. This will lead to the sale of cheap and cheap products. It’s like compromising with the safety of two-wheelers. At present, the excise duty on the helmet is 12.5 per cent. The rate of VAT on this is between zero to 14.5 percent depending on the states.
Road and rail transport should be kept with GST Free industry chamber Assocham has told the government that sectors like infrastructure and roads and rail transport should be excluded from the GST scope. The completion period of projects in this segment is longer and the returns are negative.
Sinha took stock
of preparations. Cabinet Secretary PK Sinha on Tuesday reviewed the preparations for the commodity and service tax (GST) being implemented from July 1 in the country. Sinha held a meeting with the Secretaries of 30 Ministries related to GST for reviewing the preparations for launch. It also participated in 167 Public Sector Undertakings (PSU) through video conferencing. The cabinet secretary asked all the people involved in the meeting to work with full responsibility to make the launch of GST successful. They also instructed all concerned parties to fully help in this matter. However, Sinha expressed satisfaction over preparations for implementing GST. But also said that the process of implementing it should be so smooth that no party has to face any problem. He made it clear to the Ministries and PSUs about GST and to their customers
The profits of profitable companies will be registered Registration can not be canceled if the customer does not receive the benefits of low tax under GST. The proposed anti-profit authorities will take action in this regard. The five-member National Anti-Profiting Authority will be headed by the Secretary level. This authority can order to reduce the prices in the new tax system and reduce the prices.