The finance ministry and some states, however, appear to be inclined for 22 per cent. Service providers pay 14.So he feels the government should have one more slab for essential goods and services.

The GST regime, it is speculated, will have three slabs — 12 per cent for essential goods and services, 18-22 per cent standard rate for all goods and services, 40 per cent for products that the government wants to discourage. India follows the Canadian model that is relevant to India as they too have several states,” said S. So eating out, air travelling, gym, coaching, investment advisors, real estate agents, cab services, etc will become costly.While primary, secondary and college education are out of GST purview, higher education will be covered.In the case of transport, Mr Mani said public transport like buses, trains, taxis etc, are exempted but luxury buses, the Uber and Olas private taxis will come under GST. If any of the services that should find place in the merit rate of GST, the first in that list will be telecom services,” he said.“However, in the positive all the non-creditable state taxes become creditable under the GST regime, which would moderate the increased tax burden.5 per cent (four per cent VAT and 6 to 12..”Bring promotional material under GST, she said, will also increase the overall cost of medicines.5 per cent service tax.

The housing sector will also bear the brunt of higher GST rate.Mobile phone services will burn a hole in the pockets of the consumers as the telecom sector will also have to pay 3 to 5 per cent higher taxes in GST regime, says Sachin Menon, partner and head, indirect tax at KPMG, India. The current tax rate is four per cent, and the proposed 12 per cent maybe passed onto the consumers since the manufacturers have been sev-erely hit by pricing controls.The litmus test for the Centre is the GST rate, which would determine whether prices will go up or down and whether people would like it or not.“GST is equally applicable to all sectors and is not sector-wise as in China, which has separate rates for financial services, manufacturing, transport etc.5 crore turnover pays around zero to 12.

The latter is already subject to VAT and excise and if GST is lower, then the consumer stands to benefit.The GST Bill, which was cleared by the Rajya Sabha, is the culmination of mo-dest efforts began with the introduction of MODVAT exactly 30 years ago. “Without addressing the needs of home buyers, the government's desire of housing for all will not be met,” he said.5 per cent.Ms Shobana Kamineni, vice-chairperson, Apollo Hospitals Group and president designate, CII, has sought lower GST rate for medicine.According to rating agency ICRA says, “The incidence of tax on various goods and services would change, depending on the final rates.

Currently, manufacturers, other than exempted categories, pay around 25 to 30 per cent tax, which includes excise duty and VAT.A high GST will adversely affect the healthcare too."Whether PVC injection molding machine GST rate is 18 per cent or 22 per cent, ICRA says the GST rate applicable to services is expected to be higher than the current service tax rate. The fees at all these institutions will see a hike in the range of 5 to 7 per cent. “With respect to medicines, we request some leniency. Hospital expenses for patients will cost more, said Mr Mani. Mr Rohit Gera, MD, Gera Developments and vice-president of CREDAI, Pune Metro, hoped that the final bill takes care of the home buyers and does not raise the cost of homes by raising the tax incidence on homes. Under the GST regime, all companies could be brought under 12 per cent slab — this will benefit big companies, but not the small ones.

Currently, agri-based products manufactured by big companies are taxed at 10 to 16. Manufacturers with less than Rs 1.Except for statements by experts about GST boosting economy by two per cent, people are in dark about what the GST entails and how it affects their daily life through inflationary effect on basic products and services like food, housing, education, clothing, medicine and healthcare, telephony, utilities and travel. Under the GST regime, this is increased to 12 per cent — the lowest slab under GST. “Today, healthcare pays four per cent VAT. As the passage was the result of difficult political process spread over several decades, it obviously calls for celebration.

Clothing will be more expensive if the GST rate is not uniform on yarn, fabric and apparels, and similarly in the case of the food processing sector, he said.While the government has not revealed its cards, a committee head by chief economic adviser Arvind Subramanium recommended 18 per cent rate.5 per cent VAT — high value products, salt, etc will have zero per cent VAT, essential goods four per cent and all others at 12. Mani, senior director, Deloitte.5 per cent excise duty) and those by small companies will be taxed at four per cent