In a modern life, people spend on various necessities apart from other goods and services that are required from time to time. How many times have you wondered, while going on with your daily life, is the GST charged in my bill correctly calculated? Is the seller trying to fleece me? Whether it’s your hotel bill, restaurant bill, gym membership or grocery store bill, GST is charged on a number of items, and with several complex rules regarding calculations, it is a difficult task to ensure accuracy in calculation.
At RupeeNotes, we always say ‘Prevention is better than cure!’. It’s better to be informed and knowledgeable about the various GST rules rather than regretting it later (when the rupee notes in your hands have gone into the palms of the seller).
This guide will help you alleviate all of those fears. Here are some things you might be paying GST on, in your day-to-day life:
1. GST on hotel room reservation
There is no GST on hotel rooms with tariff upto Rs. 1,000. Above Rs. 1,000 and upto Rs. 2,499.99, the applicable rate is 12%. From Rs. 2,500 to Rs. 7,499.99, the applicable GST rate is 18%. Above Rs. 7,500, the GST rate applicable is Rs. 28%.
Another thing to make note of is that, the GST is charged on the realised amount and not the declared amount.
2. GST on restaurant bills
GST on most restaurants is chargeable at 5%. However, in cases of restaurants within hotels, which have declared room tariff of above Rs. 7,500, the rate chargeable shall be 18%. In all other cases, the GST chargeable shall be 5%. Declared room tariff refers to the tariff declared by the hotel as the price for utilisation of the room for one night excluding any discounts.
In cases of outdoor catering, the GST chargeable is 18%. Alcohol consumption is not charged to tax under GST, it is chargeable to tax under the state VAT laws.
3. GST on gym membership fee
GST on gym membership fee is chargeable to tax at the rate of 18%. However, you need to make sure that the 18% is charged to tax on the amount paid by you and not the declared value of the gym membership.
4. GST on mobile phone purchase
GST on mobile phones/ cellphones is 12%. In case you do wish to purchase one, make sure the dealer does not charge you more than that.
You can also benefit from availing input on the GST paid on your purchase. To know more about GST input and how to avail it, read our article here: Basics of GST
5. GST on clothing items
GST on clothes is divided into two tiers: clothes priced above Rs. 1,000 and below Rs. 1,000.
For clothes below Rs. 1,000, the GST rate is 5%; whereas the rate for items above Rs. 1,000 is 12%.
6. GST on shoes
GST on shoes is chargeable at 18% except in the situtation where the shoes are to be sold at a price less than Rs. 1,000 and such price is indelibly marked or embossed on the shoes itself, in which case, the applicable GST rate shall be 5%.
7. GST on computers and computer parts
GST on laptops and desktop computers is 18%. Most computer parts such as hard disks, RAM, CD drive etc. are also chargeable to GST at 18%. However, LED/ LCD computer monitors in size above 32 inches and laptop adaptors are chargeable to tax at 28%.
Did we miss something out? Please feel free to discuss any issues/ queries below. Thanks for reading!
