Coleman Kensinger

To subsume almost all indirect taxes in India, except for a few state taxes, the government, in 2017, launched the Goods and Services Tax (GST) regime that is in line with globally-accepted tax regimens.

The Goods and Services Tax (GST) covers real estate in India through works contracts and building and constitution works, as all components used in the development work attract GST. To put it simply, covered under the new regime is the Indian construction industry, which continues to attract high rates of taxes through a blend of levies imposed on the purchase of various building construction materials.

GST on construction and building materials

GST is a four-tier tax builders in India have to pay on purchase of construction and building material. The GST rate on construction materials and building materials ranges between 5% and 28%.

GST rate on construction and building materials 2021

Discussed in detail in this article are the taxes one has to pay as GST on various building materials.

Sand GST rate

5%: Natural sand of all kinds other than metal-bearing sand.

18%: Bituminous or oil shale and tar sands, bitumen and asphalt, natural asphaltites and asphaltic rocks.

Cement GST rate

28%: On portland cement, aluminous cement, slag cement, super sulphate cement and similar hydraulic cement.

GST on bricks

5%: Building bricks and other bricks of fossil means and other siliceous earth or fly-ash bricks.

GST on supply of bricks hiked to 12%

In a move that will eventually increase the cost of property, the GST Council decided to increase the tax on supply of bricks to 12% with ITC benefits. This GST hike on supply of bricks will come into effect from April 1, 2022.

"Brick kilns would be brought under a special composition scheme with a threshold limit of Rs 20 lakhs, with effect from April 1, 2022. Bricks would attract GST at the rate of 6% without input tax credit under the scheme. GST rate of 12% with ITC would otherwise apply to bricks," the GST Council said after its meeting on September 17, 2021, in Lucknow, UP.

18%: Tile, refractory bricks and ceramic goods.

28%: Materials made of cement, artificial stone or concrete like brick, flagstone, building blocks, cemented bricks, including prefabricated components for building construction; glass-based paving blocks, including squares, tiles, slabs, objects of pressed glass used in the construction process, glass cubes and small glass wares for decorative purposes, including leaded lights, foam glass used in blocks, plates and panels, etc.

GST on gravel and crushed stone

5%: Pebbles, gravel and crushed stone used in concrete.

GST on marble and granite

12%: On marble and granite blocks.

28%: Marble, granite and travertine not in blocks.

GST rate on building stone

5%: Porphyry, basalt, sandstone and other monumental or building stone, both, in blocks and slabs.

GST on steel

18%: On iron blocks, wire, rolls and rods.

GST rate for tiles

5%: Earthen or roofing tiles.

18%: Bamboo flooring tiles.

28%: Cement tile, concrete tile, artificial stone tile, floor coverings of plastics in rolls or in the form of tiles, wall or ceiling coverings of plastics, panels, boards, tiles, blocks and similar articles of vegetable fibre of straw or of shavings, chips, particles, sawdust or other waste, of wood, agglomerated with cement, plaster or other mineral binders, ceramic flooring blocks, support or filler tiles, articles of plaster like boards, sheets, panels, tiles and similar articles, hearth or wall tiles, ceramic mosaic cubes, glazed ceramic flags and paving, hearth or wall tiles and glazed ceramic mosaic cubes.

GST on coal

5%

See also: All about the National Building Code

GST rate for interior materials used in construction

GST on mica

12%: On worked mica and articles of mica.

GST rate on electrical machinery

28%: Electrical machinery and equipment and their parts.

GST rate on paint and varnish

28%: Paints, varnishes, enamels, lacquers based on synthetic polymers or chemically modified natural polymers, glaziers' putty, grafting putty, resin cement, caulking compounds, painters' fillings, non-refractory surfacing preparations for façades, indoor walls, floors and ceilings.

GST rate on bathroom fittings

18%: Tube or pipe fittings like couplings, elbows and sleeves made of copper, aluminium, plastic, nickel, iron and steel.

28%: Ceramic sinks, wash basins, wash basin pedestals, baths, bidets, water closet pans, flushing cisterns, urinals and similar sanitary fixtures, sanitary ware and their parts made of iron and steel, ceramic pipes, conduits, guttering and pipe fittings.

GST rate on wallpapers

28%: All types of wallpapers and wall coverings.

FAQs

Health care is a major cost for most people, especially retirees. Insurance like Medicare can make these costs more affordable. Medicare is aimed at assisting those over 65 to cover healthcare costs, and there are different types of Medicare available to those who qualify. Whether you are close to retirement or planning for your future, you may be wondering, how much does Medicare cost? Consider this article a guide to your Medicare-related questions.

Several factors determine how much you pay for your Medicare, including your age, your annual income, the type and amount of Medicare services you enroll for, how much you use the services, and whether or not you're covered under any other health insurance plan.

Additionally, Medicare expenses consist of several types of costs: monthly premiums, deductibles, (how much you pay before your insurer covers the costs), copays, (a standard fee for a service), and coinsurance (the portion you owe after your Medicare offsets your payments). There is also a late enrollment fee that you may have to pay if you enroll after the age of 65.

What Is Medicare?

Medicare is a health insurance program provided by the federal government to cover Americans age 65 and over. Individuals with disabilities or end-stage renal failure can also qualify for Medicare coverage. Though different, Medicare is often confused with Medicaid — another kind of insurance program run by the federal government. Medicaid, however, primarily supports those with lower income, and age is not a determining factor.

Medicare is broken up into "parts" that cover different services and have different associated costs. These portions are labeled Medicare Part A, Medicare Part B, Medicare Part C (Medicare Advantage), and Medicare Part D.

Medicare Part A: Hospital Coverage

Medicare Part A is also called "hospital coverage" because it primarily covers costs like inpatient hospital care, nursing facility care, and hospice care. Part A can also cover some home health care costs, though these are mostly covered by Part B.

Premiums

Most people have no monthly premium for Part A due to paying Medicare taxes for a long enough time (usually the previous 10 years). If you don't qualify for premium-free Part A can buy the coverage instead. The premium costs as of 2021 are either $259 or $471, depending on how long someone worked and paid Medicare taxes.

Deductibles

Medicare Part A has a deductible of $1484 per benefit period, defined as the time between when you are first admitted to the hospital and the time that you have not received services for 60 consecutive days.

Copays and Coinsurance

There is no coinsurance required for the first 60 days of a stay in a hospital or skilled nursing facility, but there are coinsurance amounts that kick in after the initial sixty days have passed.

Medicare Part B: Medical Coverage

Medicare Part B covers outpatient services, doctor's fees, preventative services, and the cost of using medical equipment. Some people, such as those who are enrolled for Social Security, are automatically enrolled in Part B. Others have to enroll online.

Premiums

Individuals who earn less than $88,000 per year or couples who file jointly and earn less than $176,000 per year pay the standard premium of $148.50. Those with higher incomes are tiered into different premium levels by their income.

Deductible

For 2021, the standard deductible for Part B costs $203. If you receive benefits through Social Security, the Railroad Retirement Board, or the Office of Personnel Management, your premium is automatically deducted from your benefits.

Copays and Coinsurance

Medicare works with doctors' offices to set standardized prices that they will pay for services. After you've paid the deductible, Medicare will cover 80% of these medical expenses, while you'll be expected to cover the remaining 20% of the approved amount.

Part C: Medicare Advantage

Part C, or Medicare Advantage, is offered through private insurance companies that provide Medicare-approved plans, and Medicare pays a set amount for your care. You then cover the rest. These plans roll services typically covered in Parts A, B, and D into a single plan. They may also provide additional coverage for other medical and health expenses, such as dental and eye care or fitness memberships.

The costs are much more variable, like traditional insurance plans. Each plan has different premiums, deductibles, and copays. These coverages are determined by the insurance group providing the plan. In 2021, the costs are expected to decrease by $21.

Medicare Part D: Prescription Coverage

Medicare Part D is also offered through Medicare-approved private insurers. It covers the cost of prescription drugs. You can either opt-in through purchasing a Medicare drug plan or have it as part of your Medicare Advantage Plan. Medicare Drug plans can vary in cost and in the prescription drugs that they cover, but each plan meets a minimum standard of coverage.

Premiums

Part D premiums are in addition to Part A and B premiums, but they are covered as a part of Medicare Advantage plans. Although premium amounts can vary by the plan chosen, the average premium for Part D in 2021 is $33.06. Like with Part B, those with higher incomes will have higher premiums.

Deductible

Again, the deductible amount will vary by the plan you choose. Some plans are free, and the most expensive is $445.

Copays and Coinsurance

 The amount of copayment varies from plan to plan and from drug to drug. Tier 1 and 2 drugs are relatively inexpensive, Tier 3 and 4 drugs are more expensive.

After meeting the deductible, you are responsible for your portion of the prescription coinsurance until the total amount paid by you and your insurer combined reaches $4,130 (including the deductible). After this amount, you only have to cover 25% of the prescription cost until you reach $6,550 total.

Is Medicare Free at 65?

Though you are eligible for premium-free Part A if you are over the age of 65 and if you or your spouse has been paying Medicare taxes for the past 10 years, Medicare is not free. Additionally, there is a late enrollment fee of 10% of the premium for each part of Medicare for those who enroll after age 65.

Choosing a Medicare Plan for You

Which plan is right for you depends on your individual situation. While Medicare Advantage plans have some positives, like not needing supplemental coverage and getting to choose the type of plan you use, there are some downsides, like only being able to go to providers within your plan's network and having greater variation in out-of-pocket costs for services.

Plans A, B, and D also have advantages, such as being able to only purchase the coverages you need and being able to go to any provider across the US that accepts Medicare. The best way to choose the right plan is to carefully consider your current and future needs, then compare plans using Medicare's website.

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