Bharti AXA HEALTH Insurance Want To Know the Tax Difference after GST 10 Oct 2017 The introduction of Goods & Services Tax (GST) since July 1, 2017 has been the biggest tax reform in India since independence. The main objective of GST is to simplify the process and the system of taxation in India and to ensure the compliance of tax payment. This tax is applicable to all the manufacturers, sellers as well as consumers. Let’s take a look at some of the major tax differences that have emerged after the application of Goods and Services Tax. SECTOR/INDUSTRY PERCENTAGE OF TAX (GST) Food grains, and crops (Wheat, rice, maize etc.) 0% Mass consumption products (Oil, tea, coffee, spices etc.) 5% Processed foods (Cheese, convenience foods, bread, etc.) 12% Consumer goods (Tooth paste, smart phones etc.) 18% Luxury Items (cars, aerated beverages, tobacco etc.) 28% The General Changes GST will reduce the loss of revenue that was caused because of VAT. Before GST, states used to reduce VAT rates to attract investors. That would cause losses to the central government. Application of GST will make sure of a robust income for the state as well as central governments. Ease of Transporting Goods Transportation of the goods will be easier with the help of GST, because there will be no separate charges across the states. This will not only reduce the cost of transportation, but also make it quicker. Replace Indirect Taxes Before GST was introduced, there were a number of taxes which had to be paid, such as, Central Excise, Service tax, Central Sales Tax (CST), Countervailing Duty (CVD) and so on. These taxes made the processes extremely complicated and lengthy. Prevents Unhealthy Competition Introduction of GST will prevent unhealthy competition between states. These conflicts occur because of the different and complicated tax structures. Local Application GST is not applicable on the goods and services that are exported out of India. This encourages exports at lower cost, which leads to increase in trades and markets, and also contributes to the hike in the GDP (Gross Domestic Product) of the country. There has been a marginal increase in the tax rate applicable on insurance after GST. Service tax rate of 15% applicable earlier for the insurance industry has been replaced by GST rate of 18%. At Bharti AXA, we have made our portal GST ready and in a matter of seconds, you can access the Insurance Premium Calculator Online and understand how GST affects your existing policies. Why choose Bharati AXA Health Insurance With health insurance plane, financially secure yourself and your family at affordable premiums FLEXIBLE PLANESComprehensive Range of medical cover up to Rs 1 Cr TAX SAVINGSUp to Rs 55,000 Tax-saving under 80D CASHLESS CLAIMSClashless Hospitalization Across 4500+networks hospitals DEDICATED CLAIMS HANDLER Explore Our Products Car Two Wheeler Travel Health Request Call Back Category * - Select -CarTwo WheelerHealthTravelPersonal Accident Buy Renew Claim submit Disclaimer : The information published on this website is for the public's reference only. Content of this information is to provide an overview of your Travel needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice. Bharti AXA General Insurance Company Limited makes no representations about the suitability, reliability, timeliness, and accuracy of the information, travel, services, or any other items mentioned on this subject for any purpose whatsoever.