New Delhi: Narendra Modi-led NDA government is all set to launch the long awaited Goods and Services Tax in the historic Central Hall of Parliament at a starry midnight on June 30, but as the GST would come into effect, the financial transactions will cost a bomb to your pocket. Also Read - ISRO’s PSLV-C51 Rocket Set to Blast Off on Sunday Carrying Bhagavad Gita, PM Modi’s Photo | Countdown Begins

From July 1, 2017, GST will replace all indirect taxes like service tax and VAT and a straight 3 per cent hike will be levied as banking services as well as telecom have been put under the 18 per cent slab which means for every banking transaction of Rs 100, each customer will have to pay Rs 3 more. Customers are currently paying 15 per cent service tax for cash deposit, ATM transactions, credit and debit Cards, insurance premiums, EMIs. Also Read - India Toy Fair 2021: 'Use Less Plastic to Make Toys,' PM Modi Tells Industries

SBI Card had even sent SMS to its customers alerting about the higher incidence of tax. Also Read - Breaking News Updates: Price of Coronavirus Vaccine in Private Hospitals Capped at Rs 250 Per Dose

“Important: The Government of India proposes to implement the GST which is likely to be effective from July 1, 2017. Consequently, the existing service tax rate of 15 per cent shall be replaced by a GST rate of 18 per cent,” the SMS sent by SBI Card read.

Private banks like  Standard Chartered and HDFC also sent ding messages related to GST to their customers. As per the reports of PTI, ICICI Prudential Life Insurance, in email messages to its customers, said premium payable on term policy and fund management charges on a Unit Linked Insurance Policy will attract 18 per cent GST post implementation of the new indirect tax regime.  Currently, customers pay 1.88 per cent service tax on endowment policies but now GST will be levied at the rate of 2.25 per cent on premium payment for endowment policy.

GST has been dubbed as the most significant economic reform since BJP government came to power in 2014 and is expected to add as much as 2 percentage points to the GDP growth rate besides raising government revenues by widening the tax net.

The GST Bill was originally introduced by Pranab Mukherjee when he was the Finance Minister in the previous UPA government. Unlike the last midnight event held in 1997 to mark the golden jubilee of Independence at a special session of Parliament, it will be a gala event at the circular-shaped hall that has been loaned for the launch of the historic reform. Both President Pranab Mukherjee and Prime Minister Narendra Modi will be present at the event.

The launch event will start at 11 pm today and extend into the midnight, coinciding with the rollout of the GST regime, official sources said. Lok Sabha Speaker Sumitra Mahajan and Vice President Hamid Ansari will also be on the dias along with the President, PM Modi and former prime ministers. Megastar Amitabh Bachchan, business tycoon Ratan Tata, legendary singer Lata Mangeshkar will be among the attendees, which also includes BJP president Amit Shah and former finance minister Yashwant Sinha.

(With inputs from agencies)