GST has already brought a lot of changes in the entire taxation system in every sector. Though goods and services tax have affected almost each and every sector, fashion industry is still in the limelight. It is said that the way the fashion industry works will be entirely changes after the GST implementation. The GST rate for the most-loved industry is going to be eighteen percent which means whatever you buy related to fashion will get a bit expensive. It is, therefore, important for fashion-freaks to know the ups and downs in the prices of products and beauty centers are going to get higher. Let’s discuss the impact of GST on fashion freaks.
Wellness/ Beauty Products
The beauty or wellness products have gone cheaper after the implementation of GST. As the industries like Himalaya, Patanjali have saved huge amounts on logistics and distribution because the GST rate has gone down to eighteen percent whereas the FMCG has to pay multiple taxes for such products
Fitness freaks will remain in a loss as the GST tax rate for gyms and other fitness center is going to get higher up to eighteen percent. This might hamper the demands of customers as the services provided in such centers would cost more. However, in the long run, if we talk about big fashion designers or the industries will be benefited as they can claim the ITC on fitness equipment.
Salons are quite common in today’s world and there’s nobody who does not likes spending time there and rejuvenating themselves. However, salons are a service-based market and hence have got more expensive after the GST roll-out. Though GST is said to be a unified taxation system, the burden on customers is going to get high as the services will get expensive.
Personal Care Products
Previously, there were lower indirect taxes on personal care products whereas according to the GST, the rates on such products have been increased to eighteen percent. This is why the demand of these products have been affected. Therefore, the beauty products will get a bit costlier than they used to be before.
The Way Forward
In case of healthcare sector, GST tax in India is one of the major steps towards progress as the goods and services can be moved from one state to another easily and conveniently. This is how, it has already begun to benefit the consumers as the price of such products has gone down. Due to free flow of credits the sellers or the suppliers will also get the benefit in the form of ITC. In the long run, the biggest tax reform is obviously going to benefit the population, however people need to get prepared accordingly.