Mumbai diners can expect bigger bills from July 1. Photo: Flickr Commons
Mumbai diners can expect bigger bills from July 1. Photo: Flickr Commons

With the midnight rollout of the Goods and Services Tax (GST), eating out, staying at a hotel, purchasing a home and buying jewelry will become more expensive in Mumbai, according to media reports.

Many Mumbaikars may soon be opting to eat at home more often as restaurant bills will be 12% higher from July 1, according to the Economic Times.

Staying in a hotel after dinner will be more expensive as well. Air-conditioned hotels will be charging 18% GST and non-AC ones will charge guests 12%.

Adarsh Shetty, president of the Indian Hotels and Restaurant Association, was quoted as saying, “Consumers will have to pay more once GST comes to force. We are not increasing charges, but GST is a government tax to be collected from consumers. We are just facilitators.”

The total tax bill on property purchases, including stamp duty, will come to 18%. However, buyers will not have to pay GST on existing flats because it only applies to projects under construction, the Hindustan Times reported.

Those celebrating their new home purchase by splashing out on some bling will be hit once again at the jewelry shop. The tax on gold jewelry will now be 3%, up from 1.2% VAT. Jewelers until now paid the government 1.2% VAT, 0.25% octroi and 1% excise tax.

“We will charge 3% GST from consumers. It is indeed a burden,” said Kumar Jain, vice-president of the Mumbai Jewellers’ Association.