GST Impact

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Let’s quickly have a look at all the key points you need to know to plan your investments post-GST

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Presentation Transcript

Slide 1:

GST impact: Key questions for you to ask while planning your investments

Introduction:

Introduction GST has been the buzz for some time now. A path-defining tax reform for India, GST may also bring some short-term jitters to investors through marginal rise in cost of investments.Let’s quickly have a look at all the key points you need to know to plan your investments post GST:

Impact of GST on investing in mutual funds:

Impact of GST on investing in mutual funds Most of us invest in mutual funds through the SIP route. It has become a highly-paying and popular method of investing in India over the past decade . That said, as investors in mutual funds, we will have to be prepared to bear a greater cost of investment compared with earlier, owing to GST tax slab of 18%for financial services companies

Impact of GST on brokerage :

Impact of GST on brokerage The brokerage paid for buying shares in the stock market post the GST regime will be higher than before the GST implementation owing to financial services falling under the 18% tax slab of GST. Since the brokerage percentage is a very small one, an increase might not impact us much. However, holding our shares in our Demat account post GST will be costlier since the rate would be 18%.

Impact on financial planning services:

Impact on financial planning services Our financial planners and tax consultants will now have to register with GST. Thus , their advisory services for taking well-informed investment decisions will be costlier post GST.

Impact of GST on insurance premium:

Impact of GST on insurance premium In case we would want to invest in term plans, premium for ULIPs, health insurance, personal insurance , and vehicle insurance would increase due to rise of taxes from 15% earlier to 18% post GST , which will also be the case for endowments plans . That said, for annuity products, the GST applicable will be lower. Other than these, GST can also impact the loan processing fees and other baking services such as NEFT , RTGS, and IMPS. That said, this would be a short-term impact, but financial planning and investment is a long-term concept. Therefore , it becomes even more vital for you to stick to your financial goals and objectives and remain focused on your investments. Remember , your investments will help you square-off almost everything in the long run through the power of compounding .

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