Snapshot Regarding GST Tax List

As GST is less than a week away, still this new tax regime has been proclaimed as one of the biggest tax reforms in India since independence. The Central Board of Excise and Customs(CBEC) has issued a list relating to the tax slabs of 0, 5, 12, 18 and 28 per cent tax under GST.

Let's check out GST tax rate list rolling out on applicable items as under:

No Tax Rate

The household items which will have no tax regime are classified as follows:

• Unpackaged food grains
• fresh vegetables
• Unbranded atta/maida/besan
• Gur
• Milk
• Eggs
• Curd
• Lassi
• Unpacked paneer/natural honey
• Prasad
• Palmyra Jiggery
• Salt
• Kajal
• 'Phool-bhari jharoo'
• Children's drawing/colouring books

5 per cent Tax Rate

Sugar, tea, roasted coffee beans, edible oils, skimmed milk powder, milk food for babies, packed paneer, cashew nuts, raisin, PDS (Public Distribution System) kerosene, domestic LPG, footwear up to ₹ 500, Apparel up to ₹1,000, agarbatti (incense sticks), coir mats, matting and floor covers come under 5 per cent tax rate.

12 percent Tax Rate

Butter, ghee, almonds, fruit juice, packed coconut water, preparations of vegetables, fruits, nuts or other parts of plants including pickle, murabba, chutney, jam, and jelly, umbrella and mobiles fall under 12 percent GST Tax rate category.

18 percent Tax Rate

Hair oil, toothpaste, soap, pasta, corn flakes, soups, ice cream, toiletries, computers, and printers come under 18 percent Tax rate

28% Tax Rate on Goods

  

The highest GST rate of 28% fall in the category of items such as chewing gum, molasses, chocolate not consisting of cocoa, waffles and wafers coated with chocolate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use.

28% GST on Services

28% GST  rate  falls under service sectors such as 5-star hotels, race club betting, and cinema.

GST Rate on Gold and Jewellery

The GST tax rates will also apply to Gold and Jewellery as well. If the customer returns the jewellery to the seller, the 18% tax paid during purchase cannot be reclaimed. In other words, the cost of the jewellery will minimize by 18% GST paid during purchase. However, the buyers will be extremely impacted. The government is still considering over the mechanism for GST. Therefore, the effect could be hardly seen but the change would be clearly witnessed at the time of more information flows as per GST rules.

As per the present norms, under GST, gold ornaments would levy a tax rate of 18%, which the jeweller can accommodate with input credit. This 18% tax has to be borne by the final customers. Therefore, the final value of the jewellery increases.

GST Rates on Textiles

GST Council has decided to levy 5% across the textile sector so accordingly the products and items used in the textile manufacturing process would be taxed as per the following structure:

GST Tax rate at 12%

1. Wood articles: This consists of all articles of wood such as clothes hangers, spools, cops, bobbins, sewing thread reels, and turned wood for textile machinery.

2. Final manufactured products consisting of wholly made of quilted or textile materials.

GST Tax rate at 18%

1. Textile Oil : Consisting of all textile oils other than those consisting of petrol, diesel, and ATF(Aviation Turbine Fluid).

2. Finishing agents: Consisting of dye carriers, materials used to expedite dyeing or fixing of dyestuffs, dressings, and mordants.

3. Machinery: This consists of all machines used to prepare textile fibres; spinning, doubling or twisting machines and other machinery for manufacturing textile yarns; textile reeling or winding(including weft winding) machines and machines for preparing textile yarns for use on the machines. Also, the machinery for washing, cleaning, wringing, drying, ironing, pressing (including fusing presses), bleaching, dyeing, dressing, finishing, coating or impregnating textile yarns, fabrics or made up textile articles and machines for applying the paste to the base fabric or other support used in the production of floor covering such as linoleum; machines for reeling, unreeling, folding, cutting or pinking textile fabrics.

Check ICICI Car Loan Eligibility and Apply for Best Car Loan

A car that has taken your heart away is the one you would love to own. If you have been waiting a long time to buy your dream car, this is a perfect time. You can book luxury cars like Jaguar now with the option of car loans. ICICI Bank is one of the leading private sector banks and is also a leading bank when it comes to getting an affordable car loan.

Here, you can get new car loans as well pre-owned car loans at ICICI Bank. The interest rate and other details vary accordingly. The car loan interest rate is low along with the facility of a higher loan amount facility with the help of which you can book a car without worrying much about its cost. Hence, the opportunity to get a best car loan is here in front of you!

ICICI Car Loan Eligibility Criteria

At ICICI, just like any other loan, a car loan is also provided once the individual matches the eligibility criterion set by the bank. Having said that, this eligibility is subject to change from one profession to another. So, the eligibility is as follows:

For Salaried:

• The applicant’s age must be between 23-58 years
• The net monthly income should be at least ₹2.5 lakhs
• The minimum work experience that is required is 2 years with at least 1 year at the present organization

For Self-employed:

• The applicant’s age must be between 28-65 years
• The net annual income should be at least ₹2 lakhs
• The minimum experience in the profession should be 3 years

Since this financing service is an unsecured one, you do not have to provide any security to get this loan. Hence, your loan will be disbursed on the basis of the ICICI car loan eligibility and the factors as mentioned below:

Factors Affecting Car Loan Eligibility

Monthly Income- Be it any loan, your income is the most important factor as it will decide your repayment capacity. So, the more you earn, the more you can get.

Age- People who are young are generally free from burdened financial responsibilities and hence it is expected that they can make a smoother loan repayment. So, if you have just started your career and have a good source of income, you can get the loan approval without any hassle.

Car Value- The loan amount eligibility also depends on the on-road price of the car. ICICI Bank offers car loans upto 100% ex-showroom price of the car.

Car Model Type- The model of the car is also considered while approving the loan. So, taking a loan for an expensive would give you a better deal.

Credit History- Your credit history or CIBIL score is very important as it decides how smooth your past loan record is and hence it builds the trust between the bank and the customer.

Professional Stability- Be it any profession, you must have the required experience to get a car loan from ICICI Bank.

Category of the employer- If you are working in an MNC or any other big firm, your profile is strong and matching other relevant criteria can surely give you a smoother loan journey.

Existing Customer- If you are an existing customer of ICICI, you might not have to follow the KYC process as the bank already has it.

Documents Required

The list of documents that you must carry at the time of applying for a car loan at ICICI Bank is as follows:

For Salaried:

• Age Proof- PAN Card/Passport/Voter ID, School or College Leaving Certificate/ Aadhar Card
• Identity Proof- Driving License/Voter ID, Passport/PAN Card/Aadhar Card
• Address Proof- Passport/Voter ID/Electricity Bill/Telephone Bill/Insurance Policy/Aadhar Card
• Income Proof- Latest Salary Slip, Form 16
• Employment stability proof
• Duly signed filled application form
• 2 passport size photos

For Self-employed:

• Age Proof- PAN Card/Passport/Voter ID, School or College Leaving Certificate/ Aadhar Card
• Identity Proof- Driving License/Voter ID, Passport/PAN Card/Aadhar Card
• Address Proof- Passport/Voter ID/Electricity Bill/Telephone Bill/Insurance Policy/Aadhar Card
• Income Proof- Income Tax Return along with Audited Profit & Loss A/C Statement and Balance Sheet of Last 2 Years
• Business Stability Proof
• Duly signed filled application form
• 2 passport size photos

Credit Linked Subsidy Scheme-Big Buck Saver on Home Acquisition & Construction

A couple of years ago, buying a home remained pretty much in the dreams and were a far distant reality for most. The housing prices, along with the interest rate were well beyond the reach of the masses. However, in a span of just over a year, some interesting developments have taken place in the real estate space and the home finance segment, which has made the acquisition or construction of houses a lot easier. The demonetization was a shot in the arm for realty investors, taking out the black money portion away from the real estate market and in the process removed a lot of fraudulent builders. This has resulted in the home prices softening. The demonetization led to a massive deposit surge across the banks, giving them the headroom to initiate the rate cut exercise which is still on even though the last three monetary policy stance of the RBI have been neutral.

The home loan rates have come down to 8.35%-8.80% per annum, falling from the level of 9.30%-9.80% about a year back. But what has broadened the reach is the government’s big bang release of Credit Linked Subsidy Scheme in March 2017. The Prime Minister Narendra Modi, on the eve of New Year, had already hinted about such a scheme, triggering widespread speculations among the experts on the home loan interest rate under the government- sponsored scheme. However, the actual details of the scheme were yet to be worked out. So, let’s start discussing Credit Linked Subsidy Scheme (CLSS) here and find out its benefits.

Components of CLSS

CLSS is the part of the Pradhan Mantri Awas Yojana (PMAY) designed in a way to provide shelter to everyone by 2022. The subsidy scheme applies to households, with an income of ₹3 lakhs to 18 lakhs in a year, looking to buy or construct their first house on a home loan. The maximum loan tenure is upto 20 years if you apply under PMAY scheme. The government has allocated the subsidy based on three different income groups. Depending on the income group you fall under, the subsidy will vary.

(1) CLSS-LIG/EWS- This component puts in place the households having a yearly income of ₹3 lakhs to ₹6 lakhs. A subsidy of 6.5% on a loan amount of upto ₹6 lakhs is likely to be granted, while the amount exceeding the limit will bear a charge of normal interest rate.

Example- You applied for a home loan of say ₹10 lakhs to construct a home under PMAY scheme. Suppose the lender offered a normal interest rate of 8.65% and a tenure of 20 years to pay off the loan. In that case, a subsidy of 6.5% will apply on ₹6 lakhs while the remaining amount of ₹4 lakhs to be serviced at 8.65%. If that is the case, the total EMI and interest outgo would be ₹6,587 (3,078+3,509) and ₹5,80,723 (1,38,746+4,42,247), respectively, greatly reducing from an EMI of ₹8,773 and interest of ₹11,05,617 if you go without subsidy.

(2) CLSS MIG-I- Households with a yearly income of more than ₹6 lakhs to ₹12 lakhs feature under CLSS MIG-I scheme. For these households, the government has set a subsidy of 4% on a loan of ₹9 lakhs. The loan amount above the said limit will be charged at a normal rate of interest.

Example-You earn about ₹9 lakhs in a year and wish to buy a home. On an application seeking a home loan of say ₹28 lakhs for a 20-year period, a lender gave you an interest rate offer of 8.55% p.a. But since the application was made to avail the benefits of the PMAY scheme, the lender would have to calculate the EMI and interest liability based on the subsidy due on the same. At a subsidy of 4% on a loan worth ₹9 lakhs and the remaining ₹19 lakhs at the normal rate of 8.55%, the EMI appears to be ₹22,267 (5,718+16,549) while the interest outgo stands at ₹ 25,44,075 (4,72,359+20,71,716). When you make a calculation without taking subsidy into consideration, the EMI and interest would be at ₹24,388 and ₹30,53,056. So, you can see a savings of ₹2,121 and ₹5,08,981 in terms of EMI and interest repayments, respectively.

(3) CLSS MIG-II- Under this component, it’s the households having an annual income of above ₹12 lakhs-18 lakhs will become the beneficiary. An 3% interest subsidy on a loan of ₹12 lakhs is waiting for them to avail at a lending institution offering a home loan under PMAY. The loan above ₹12 lakhs will carry a normal interest rate.

Example- Your annual income stands at ₹15 lakhs. You applied to a PMAY-backed home loan of ₹45 lakhs at a bank offering a normal interest rate of 8.60%. The maximum tenure granted is 20 years in your case. With subsidy, the EMI and interest would come down to ₹37,170 (8,323+28,847) and ₹44,20,786 (7,97,417+36,23,369). However, the very same loan will put before you a higher EMI of ₹39,337 and an interest repayment of ₹49,40,958 in the absence of any subsidy.

So, you are updated with Credit Linked Subsidy Scheme with facts and examples in the best way possible. The interest rate environment at the moment is favourable and look all set to ease further. You can either apply for PMAY scheme now or wait for a couple of months to do the same. PMAY is undoubtedly clearing out the way for a smooth home acquisition or construction.

Know all about Credit Card Eligibility before applying for one!

Credit Card Eligibility is the first thing that applicants check while planning to apply for it. This criteria helps the banks choose the apt customer for their product. Through this criteria, the applicant can be gauged on various levels such as the financial responsibility that they have shown in the past, their ratio of monthly savings and and expenditure and much more. Also, other factors such as the age of the applicant, their nature of profession and their monthly income also plays an important role in the determination of their eligibility. Take a look at the factors that an applicant should be careful about while going in for the application procedure.

General factors that determine the Credit Card Eligibility:

The general factors that determine the Credit card eligibility of applicants during the application process are:

• Age Bracket: The applicant must belong to the age bracket of 18 years to 60 years during the application. The age is one of the major factors that help the banks judge the suitability of the applicant. Minors can also get it of their own with the help of a co-signer.
• Nature of Profession: The applicant can be a salaried professional or a self-employed individual. The nature of profession of the applicant is one of the major details that the bank requires to know as this would ascertain the repayment capacity of the applicant. Also, certain cards come with the restriction of a minimum monthly income which needs to be kept in mind.
• Monthly Income: The applicant must have a stable and regular source of income. The regularity and sturdiness of the monthly income of the applicant would ensure timely repayment schedule and minimal defaults.
• Credit Score: It is immensely important for the applicant to have a good credit score. This shows that the applicant is financially responsible and is aware of how to handle his/ her finances.
• Previous Debts: Previous debts of an applicant are one of the major areas of concern during the application procedure. It is not recommended for an applicant with excessive previous debt to apply for it.  Hence, there needs to a balance between previous debts and the ability to take more.

Eligibility Criteria followed by the major banks of India

Eligibility for Credit Card in SBI

The Eligibility for Credit Card in SBI is as follows:

• Age Limit: The applicant must be older than 18 years and less than 60 years of age to be able to apply.
• Credit Score: The applicant must bear a considerably good credit score for the application to be successful.
• Nationality: The applicant must be an Indian National to be able to apply for this product.

Eligibility for Credit Card in HDFC Bank

The Eligibility for Credit Card in HDFC is as follows:

• Age Limit: The bank prescribes the applicant to be in the age bracket of 18 years to 60 years. The bank also provides add-on cards which can be applied for by the age of 15 years.
• Profession: The applicant can be a salaried professional or a self-employed individual to fit in the eligibility criteria.
• Annual Salary: The minimum annual salary of the applicant required by the bank ranges from ₹ 1.5 lakhs for those who are salaried individuals and ₹ 2 lakhs for the self-employed individuals.
• Credit Score: The applicant must have a decent credit score to be able to apply successfully.

Eligibility for Credit Card in ICICI Bank

The Eligibility for Credit Card in ICICI Bank is as follows:

• Age Limit: The bank prescribes the applicant to be in the age bracket of 18 years to 60 years. The bank also provides add-on cards which can be applied for by the age of 15 years.
• Nationality: The applicant must bear Indian Nationality to apply for it.
• Annual Salary: The minimum annual salary of the applicant must range from ₹ 2.4 lakhs for the salaried individuals to ₹ 3 lakhs for the self-employed individuals.
• Credit Score: The applicant must have a good credit score to be able to apply successfully and prove their financial responsibility.

AXIS Bank Credit Card Eligibility

AXIS Bank Credit Card Eligibility is as follows:

• Age Limit: The bank prescribes the applicant to be in the age bracket of 18 years to 70 years. The bank also provides add-on cards for minors which can be applied for by those above the age of 15 years.
• Nationality: The applicant must be of Indian Nationality to apply for it.

Credit Card Eligibility Calculator

Credit Card Eligibility Calculator is a highly beneficial tool, especially for those who are fresh in the process of application. Ascertaining the eligibility criteria of a particular financial institution can be a time taking and confusing task. Hence, this tool eases out the whole procedure and makes it convenient for the applicant to make a choice. This calculator asks for the basic details of the applicant such as their age, nature of profession, monthly income and monthly savings. Based on these details, the calculator determines the suitability of the applicant.

Apply for Credit Card Online for Instant Approval

If you are looking for a Credit cards on an urgent basis, the best way to apply for it through the online process. Online applications are highly preferred as they do not take as much time as the manual process and they are much more convenient too. Also, through online applications you can easily avoid the endless visits to the branch and the fuss of documentation involved in the procedure. With this convenient and hassle-free facility, it has become much easier to go through the application process in less time and with lesser effort.

Know Your EMIs in advance with Axis Bank Personal Loan EMI Calculator

Personal loans are unsecured loans and might sound a little expensive but that is just not true! Axis Bank personal loans give you the chance to choose the loan amount that you can afford and the tenure that would be suitable. However, the interest rate that you will get will depend on your repayment capacity and hence is directly proportional to your income. But the first and foremost important thing that you should do before you seal the deal with the bank is to be prepared for the future payment. To help you know the EMIs you will have to pay, you can use an EMI calculator.

Personal Loan EMI Calculator

EMI calculator is the best way to calculate the EMI, the total interest outgo and the total payment for your personal loan. The only details that you must mention in the calculator are the interest rate, the loan amount, and the tenure. For example, if you are taking a loan of ₹15 lakhs from Axis Bank Personal loan for the tenure of 5 years and have been offered the interest rate of 15.50% per annum, the payment will be as follows:

EMI- ₹36,080

Total Interest Outgo- ₹6,64,787

Total Amount (Interest + Principal)- ₹21,64,787

Parameters on which Personal Loan EMI is calculated

Let us have a look at the functioning of the EMI calculator to understand the process:

Loan Amount- The monthly installment or EMI of a loan is dependent on the loan amount. The loan amount depends on your repayment and if you have a higher income, you are most likely to get the maximum loan amount from Axis Bank. However, it is always suggested to make sure that the amount you choose should not hamper your other financial liabilities only then the bank will grant the approval. The maximum loan amount you can get is ₹15 lakhs.

Interest Rate- Be it any loan, the interest rate would decide the EMI that you will have to pay. You are aware of the fact that the rate of interest offered to you is the annual rate and the EMI is calculated on the basis of the monthly interest rate. The personal loan interest rate at Axis Bank ranges from 15.50% to 24% per annum.

Tenure- The loan tenure directly affects the EMI as the longer the tenure will be, the lesser you will have to pay. At Axis Bank, the maximum tenure is 5 years.

Eligibility Criteria

The Personal loan eligibility at Axis Bank is subject to change from one person to another as it depends on the credit history, the category of your employer and how your relationship is with the bank. However, the general eligibility criterion is different for a salaried individual and for a self-employed individual which is as follows:

For Salaried:

• Maximum age of the applicant must be 58 years
• Minimum Net Monthly Income should be ₹15,000
• Maximum loan amount is ₹15 lakhs
• Minimum service period with current employer should be 1 year
• Good CIBIL score

For Salaried:

• Minimum age of the applicant should be 24 years
• Maximum age of the applicant must be 65 years
• Minimum Net Annual Income should be ₹2 lakhs
• Maximum loan amount is ₹15 lakhs
• Minimum work experience in current Business or Profession should be 3 years
• Good CIBIL score

How to Apply

Being one of the best banks in India when it comes to personal loans, Axis Bank makes sure you get the best deal. The bank gives you the maximum credit facility to help you manage your finances in a better way. So, if you are looking for a bank that can give you a desirable deal, you can apply at this bank. To apply, you need to follow the below-given steps:

• Check Eligibility- You can calculate your eligibility with the help of the personal loan eligibility calculator. You have to mention the category of your employer, your salary, and other details. However, young professionals are generally given higher rate as they are mostly free from any other financial liabilities.
• Apply Online- Since everything is now a click away, applying for a personal loan is also simple and quick. With the online process, you choose the secure way.
• Apply Offline- If you are not able to apply online, the offline process is also there for you. You can visit your nearest bank branch along with the documents checklist and apply for it.