On Friday night, like the clock fork will play 12, the new tax system Goods and Services Tax (GST) will be launched all over the country. There are some such places where after the independence, the biggest tax reform will be affected immediately after its implementation. For example, if a late night restaurant went to dinner and the bill was ready on July 1, then it would not have to pay GST but not service tax. Looking forward, some cases where GST will have the first effect.

Restaurant

Those who go to restaurants around 11 o’clock tonight, and after eating their bills, they will be billed – after 12 o’clock, the GST will be replaced by the service tax. That is, they will have to pay more for the food as they will have to pay GST instead of the existing 6% (after getting tax relief on food) instead of service tax and VAT. However, the government says that the cost will not increase in fact. Nonetheless, hotels that charge service charges will continue. If you book a taxi on late evening or night on Friday and pay the midnight at 12 a.m. or later, then you have to give GST instead of VAT, as GST has been implemented from 12 o’clock at night.

Hotel stay

Even if you are living in the hotel a few days ago, but after leaving, the bills were made- after 12 o’clock in the night, you have to pay GST. On the bill made from midnight, local tax like service tax and luxury tax will be replaced by GST. However, if you have made payment in advance by booking the hotel, then you will not have to give GST, even if the bill is not made in the date after June 30. However, the GST Council has decided not to levy tax on hotels rented up to Rs 1,000 per day. Those who are below 20 lakh turnover limit have also been exempted under GST. They will have to make a refund claim from the Tax Department later.

Shopping online

Those looking for cheap should order the same goods before midnight, whose prices are going to increase after the GST is implemented. This will benefit them because since GST is generated after June 30, GST will be available. The government has decided not to put pressure on taxation of the tax while doing payment to the vendors on Amazon and Flipkart. This is going to make the case a little confusing.

Actually, GST Council will get 1% TCS (tax collected at source) from vendors of e-commerce companies under GST. GST Council aims to bring all transactions occurring in the e-commerce segment under this arrangement, after applying a percentage of tax on ecommerce sites. It is the legal obligation of all the ecommerce companies that whenever they have a cell, they deduct tax from the registered vendors, even if the tax liability is made on the sale or not. In such a situation, whenever the seller will get the payment, the companies will be offloaded with a percentage.