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

  • 1. GST impact: Key questions for you to ask while planning your investments
  • 2. 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:
  • 3. 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
  • 4. 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%.
  • 5. 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.
  • 6. 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.