GST Impact on Wedding Services and Shopping in India

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July 3, 2019

GST Impact on Wedding Services and Shopping

The wedding season in India is about to begin in November. What will be the impact of GST on weddings? The cost of the wedding is definitely going to be affected due to the newly launched GST system. The Goods and Services Tax was launched in July this year, and its impacts are already showing in various sectors.

It is being estimated that the average cost of many wedding services like shopping, tent booking, food services, etc., is going to get higher due to GST. The GST rate on most of these services is from 18 to 28 percent. Before GST, most of the wedding service businesses like tent services, confectionery booking, etc., were using unregistered bills on which they didn’t have to pay any tax.

Under GST, however, these service providers will be forced to provide GST compliant bills and pay GST tax on these supplies if they wish to take input credit. This tax liability under GST will eventually be borne by the end consumer who will now have to pay the increased tax on hiring/buying such wedding services.

GST on Wedding Shopping (Items)

  • There is a 5% GST on the shopping of clothing items worth Rs. 1000 or less, and 12% GST on clothing apparels above Rs. 1000. So, your wedding dress shopping should be a little cheaper than before.
  • The purchase of gold and diamond jewellery is going to cost you more than before as there is 3% GST on gold items as compared to the previous 1.8%. However, the tax on costume jewellery has been reduced to 12%.
  • Footwear and related accessories of value above Rs. 500 will attract tax at 18%.
  • Bridal beauty kit and makeup items will now cost more, thanks to 28% GST.
  • The cost of some essential food items will be lower now.
  • Soft drinks will cost more which might increase your wedding cost as well. Some alcoholic drinks, especially beer, will now cost more due to the increase in input costs for manufacturers.

GST on Wedding Services

Find out how GST will affect wedding services like marriage garden/marriage hall booking, tent booking, confectionery services, photography and more.

  • If you are planning to book a 5-star hotel for your wedding, know that it will cost you 28% extra in the form of GST. However, the tax rate on budget hotels has been lowered.
  • If you are planning to hire an event management service, you will have to pay an additional 18% GST on the cost.
  • GST on marriage garden and hall booking is also 18%, same as most other wedding services.
  • The cost of makeup and salon services is also likely to get higher, as 28% GST will be applicable on high-end bridal makeups. Even the normal makeup artists may demand an increased pay due to increase in GST.
  • GST on tent services is another big factor that might affect your wedding plans now. The government has fixed an 18% GST for tent (pandal/shamiana) services which will be paid by the customer.
  • GST on confectionery items and catering services may further increase your cost. An 18% GST will be levied on the catering services. It will increase the cost of hiring a confectioner and other related services. However, since there is no gst on many basic food items like milk, grains, etc., you can bargain with your catering provider to take this into consideration.
  • GST on photography services has also been increased to 18% which is likely to affect your pockets as well.
  • Wedding invitation and courier will cost more now. An 18% GST will be levied on the use of courier services.
  • On the positive side, travelling (honeymoon, etc.) will be pocket-friendly as the tax on economy class airfares is only 5% under GST.

Many people prefer to purchase wedding groceries and other items on due bills because of the unavailability of cash amount, but this might be a problem now. Under GST, the traders might not be willing to sell commodities with due bills.

For any query and information related to GST in India, be updated with GST Helpline India.

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