Are you a Parent? Know How GST is going to Affect You

Are you a Parent? Know How GST is going to Affect You

Parents have to fulfill the demands of their kids whether it is all about fun elements, education, entertainment, school requirements, and food or milk products. However, after the GST rollout, even parents have to prepare a budget to know their spending on such items and the tax they are actually paying. Due to lack of clarity on this new subject of taxation, people including parents are facing difficulties in making various decisions.

It has become difficult to trust the sellers as the GST Rules in India are still unclear. Parents are more curious to know about the change in rates of education and the basic needs of children. Though GST has increased the prices of many products and services, still the new reform is expected to be less complex than the previous one which used to include multiple taxes including VAT, service tax, excise duty, customs duty and so on. There will be more transparency in the prices, the filing of returns and the entire process have been made online to make it simpler. In this post we discuss, the GST effect on parents. Let’s take a look.

1. Entertainment

If you are a parent, usually weekends are the perfect time to enjoy with family and kids. After the introduction of GST, parents are now a bit confused on the rates of different entertainment sources. Whether it will be easier or difficult to dine out, to a party or to take your kids in a Kids Zone (specially designed area in malls for kids to play). However, if you plan to dine out in a five-star hotel, you might end-up paying a huge amount of taxes at a rate of eighteen percent whereas small restaurants will charge according to the GST rate of twelve percent. Therefore, eating-out at such places will become easier. If you plan to watch a movie, there is a good news for you all as the rates after GST on the entertainment tax has lower down.

2. Education

The best part of GST is that the Government has exempted the education sector from paying taxes. However, this is not going to bring down the huge fee-structure of children studying in schools and colleges. It is totally up to the management team of the schools or colleges that they are going to undercharge or overcharge parents. The coachings or tuitions may bloat your monthly budget as they are the private centers and aren’t affiliated with any university, therefore, the fees might incur according to the GST rate of twelve to eighteen percent.

3. Food

Usually, everybody loves to have bread, eggs, and other Indian beverages and food items in breakfast. After the GST, there is no need to worry as all these food items have been kept out from GST tax regime. However, the cost of some packaged food items that most children love to have such as chocolates, chips, coffee, ketchup, jams and all sorts of ready-to-eat items will become dearer. The good news for parents is that the milk or the dairy products will become cheaper.

4. Toys

Babies love to play with toys. If you have a baby you might be gifting him or her a toy every month be it a tricycle, cuddle toy or a magic rider. However, after the GST taxation reform, people are more confused about the rates of the toys. The playing non-electronic items like pedal cars incur a GST rate of twelve percent whereas the electronic items are kept at a rate of eighteen percent.

The Bottom Line

There are so many items on which the GST rate is still unclear and those items are creating misunderstandings between the sellers and the customers. Items such as clothes, medicines, and healthcare products will be kept out of the GST or under the new taxation regime is one such issue which is still not clear. Whatever be the case, the government is taking measure to enhance the Indian economy towards growth and welfare of citizens of India.

Therefore, it’s important as a citizen of India to co-operate with the Government and take steps to make our country an organized and developed country which is free from corruption and higher taxation burden. People are able to stand for themselves and remove the word “poor” from the dictionary of Indian history.

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