Buying a car, gold or property? How GST will impact your expenses from 1 July

Govt has surely kept the consumer’s interest in mind while deciding the tax rates under GST

Company News :The introduction of GST from 1 July 2017 would not only have an impact on businesses in India but also on the common man’s monthly budget. The prices of goods and services forming part of the monthly budget would either increase or decrease depending on the GST treatment.

Eating out

For example, when an individual eats out in a restaurant, today there is service tax and VAT charged in the invoice, apart from having a service charge collected additionally. The service tax and VAT is not applicable for all types of restaurants and therefore varies from restaurant to restaurant. Under GST, the rate of tax on the restaurant invoice could be either 5%, 12% or 18%, depending on whether the restaurant is under composition scheme, non-air conditioned or air-conditioned, respectively. The replacement of service tax and VAT with GST at the above rates would make it simple for the customer to understand how much is actually going to the government in terms of taxes.

Buying gold

When it comes to buying gold, we Indians cannot stay away from this temptation. The taxes on gold currently is around 2% in most states, comprising of 1% of excise duty and 1% of VAT in most States.

Kerala has a higher VAT of 5%. The GST rate is increased from the existing rate of around 2% to 3%. While most consumers would have to shell out additional tax of 1%, consumers in Kerala would benefit from the rate reduction.

Buying property

For under-construction property, there is a significant impact post GST. The existing tax rates are broadly around 6% in most States comprising of service tax and VAT (other than a few where the VAT rate is higher). Under GST the rate shall increase to 12%, with the ability of the builder to avail all input tax credits, resulting in reducing his cost which may be passed on to buyers by commensurate reduction in prices. However, this may not be possible for the builder immediately, especially where the builder has already procured the construction material. Hence, for properties currently under construction, the transition into GST would have consumers being charged with the additional tax without actual reduction in construction value.

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IT hiring at 10-year low, Infosys takes campus hires as interns

They’ll be paid a stipend and assessed before taken on payrolls as it faces worst growth in a decade

Breaking News : India’s second largest software exporter Infosys Ltd is offering paid internship to campus hires before taking them on rolls, a move that that would impact new jobs across the IT sector when hiring by technology services companies is already at a ten-year low.

The Indian technology services sector is facing its worst growth period in close to a decade as they see clients reducing budgets on traditional outsourcing work, which is not being offset by growth in newer areas such as digital and cloud. In addition, routine maintenance work of customer applications or IT infrastructure, where freshers are normally deployed have been taken over by automation or robots.

With use of automation, these companies are shifting their employees from projects, where their jobs have become redundant and training them on skills to match new requirements. Infosys and its cross town rival Wipro shifted more than 8000 employees from projects to other roles due to automation during the first half of this fiscal.

“It was a surprise for us that they came with the internship roles before taking our students as trainees,” says a placement head of a college, who did not want to be named. “The job market this year has been bad. We agreed to it as we have no option.”

Infosys, among the pioneers to reach out to campuses through its Campus Connect programme says it provides a limited number of internships to students as they serve as an attractive proposition for potential employees. Read more about hiring by Top 5 IT Firms.