GST Impact on Weekend\/Recreational Expenditure
By: – Craig Dsilva
Goods and Services Tax – GST
Dated:- 24-7-2017<\/p>\n
“Weekends don't count unless you spend them doing something relaxing.”
\nWith the introduction of the Goods and Services Tax on 1st July 2017 spending on leisure or recreation activities is expected to burn a hole in your pocket.
\nBelow is a sample illustration:
\nMr X and Mrs X are newly married. They are in their early 30's. Mr X earns 7 Lakhs p.a. while Mrs X earns 7.56 Lakhs p.a. Hence their total income is 14.56 Lakhs (assuming net take home pay). They decided to follow a simple process of spending 25% of their income on Savings, Investments, Necessities and Recreational expenses respectively. 25% of ͅ<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n unge\/ Luxurious Locations = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n hould be a single rate of tax since the rich will spend more and will have an increased tax burden even with the same rate. For instance, if a hotel room is booked by a middle class person usually in a 3 star with a tariff of ₹ 5000 the person spends ₹ 900 as GST i.e. at the rate of 18%. If a rich person books a hotel room in a 5 star, with a tariff of ₹ 15000 the person spends ₹ 2700 as GST at the same rate of 18% which is more than the ₹ 900 spent by the middle class person. If the person is taxed at the current rate of 28% for 5 star hotel room then the person has to spend Rs 4200. The rich person will argue that this is a double punishment, since such a person is already paying more income tax charged at a <\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST Impact on Weekend\/Recreational ExpenditureBy: – Craig DsilvaGoods and Services Tax – GSTDated:- 24-7-2017 “Weekends don't count unless you spend them doing something relaxing.” With the introduction of the Goods and Services Tax on 1st July 2017 spending on leisure or recreation activities is expected to burn a hole in your pocket. Below is a … Continue reading “GST Impact on Weekend\/Recreational Expenditure”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-6389","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/6389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6389"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/6389\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n7000
\n25%
\n1750
\n28%
\n1960
\n 210
\n8
\nHelicopter Ride (15 Minutes)
\n8000
\n15%
\n1200
\n28%
\n2240
\n 1,040
\n9
\nShopping Mall (Branded Merchandise)
\n9000
\n12.5%
\n1125
\n18%
\n1620
\n 495
\n10
\nYacht Cruise (2 Hours)
\n10000
\n18.5%
\n1850
\n28%
\n2800
\n 950
\n11
\nCasino\/Betting (Horse Race)
\n11000
\n18%
\n1980
\n28%
\n3080
\n 1,100
\n12
\nUpgrading Gadgets (Once in 3 Months)
\n12000
\n6%
\n720
\n12%
\n1440
\n 720
\n13
\nResort Vacation 2N\/3D (Tariff>2500)
\n13000
\n22.5%
\n2925
\n18%
\n2340
\n (585)
\nTotal
\n91000
\nNet Increase
\n 4,545
\n*Note: This refers to the average rate of tax in India. It includes Entertainment tax, Service Tax, Value Added Tax and other local body taxes.
\nAs you can see from the sample illustration above, the couple wil<\/p>\n
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