1. GST Impact and Effect on all items and transactions: Cheaper, costlier or same

GST Impact and Effect on all items and transactions: Cheaper, costlier or same

GST impact and effect: Following the GST launch, the new tax structure will irreversibly affect the prices of all kinds of products. Here is a list of products which will get cheaper, costlier or stay the same after GST rollout.

By: | Published: June 30, 2017 4:44 PM
GST impact, GST effect, GST launch, GST rollout, GST costlier, GST cheaper, GST price, Goods and services tax, GST tax, GST July 1, what will get cheaper GST, what will get costlier GST, GST India, rates after GST, Price after GST GST impact and effect: Here are a few things whose price will increase or decrease or stay the same after the GST rollout.

The Goods and Services Tax or GST, India’s historic tax reform will be rolled out from tonight. The new tax structure, after the GST launch will irreversibly affect the prices of all kinds of products. The GST has subsumed central and state taxes inevitably changing the indirect tax landscape of India from July 1. While the actual impact and effect of the massive reform can be guaged some time after its implementation, the immediate effect will be: cheaper, costlier and same priced products. While a few products may weigh heavily on your pockets, there will be some which may calm down your nerves and there will be no change in others.

The GST Council has made four primary tax rate slabs for various items – low rate of 5 percent, standard rates of 12 percent and 18 percent, and high rate of 28 percent. Some of these products had higher effective tax rates before GST implementaion but the new tax policy will lessen the burden on consumers. Meanwhile there will be some products which will now be taxed at a higher rate, thereby increasing their prices. However, it must be noted that the government has kept essential items of daily use tax free, that is, either at zero tax rate or completely out of the ambit of tax under GST. There is a huge number (1,211 items and 600 services) put under the tax brackets, and it may be a burden to keep a track of all of them, here are a few things whose price will increase or decrease or stay the same after the GST rollout.

Also read | GST full form: What is GST? When is GST launch, rollout in India? All you want to know

Cheaper under GST: Food: Unpacked foodgrains, unbranded atta, maida, besan, fresh vegetables and fruits, salt, food at small restaurants, cutlery, ketchup, sauces and pickle. Personal Care: Soaps, hair oil and toothpaste. Travel and Auto: Airfares for economy class travel, bikes or scooters with engine capacity below 350 cc and SUVs. Household: Pressure cookers and pans. Entertainment: Movie tickets that cost less than Rs 100. Hotels: Rooms at non-luxury hotels and hotels with tariffs of less than Rs 7,500. Others: Footwear and Apparels, Weighing machinery, UPS, revenue stamps.

Also read | GST launch in India tonight: An updated guide to tax rate across most items of common use

Costlier under GST: Food: Tea and coffee, food at fine dining restaurants or those inside five-star hotels. Personal Care: shampoos and deodorants. Travel and Auto: Airfare for business class and train tickets, bikes which have an engine capacity of over 350 cc. Household: TVs, refrigerators, ACs, washing machine. Entertainment: Movie tickets above Rs 100. Hotels: Hotels which have room tariffs over Rs 7,500. Courier services, mobile phone tariffs, insurance premiums, banking charges, broadband services. Sin: Aerated drinks, tobacco and luxury goods. Others: Mobile bills, tuition fees, salon visits and buying a flat or shop.

Also read | GST rollout, launch in India: 10 most used services and how Goods and Services Tax will impact them

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Tax free items: There will be no tax imposed on items like: Salt, eggs, milk, buttermilk, unpackaged curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, lassi, unpacked paneer, fresh meat, fish, chicken, palmyra jaggery, hulled cereal grains, unbranded and unpackaged tea and coffee, vegetable oil, children’s picture, drawing or colouring books, muddhas made of sarkanda and phool bahari jhadoo, jute, kajal (other than kajal pencil sticks), bindi, sindoor, bangles, handloom, stamps, judicial papers, printed books, newspapers, unbranded dried leguminous vegetables, silkworm laying, raw silk, silk waste, uncarded or uncombed wool, Gandhi topi, khadi yarn, coconut, coir fibre, unspun jute fibres, Indian national flag, Puja items, prasad, contraceptives, hotels and lodges with tariff below Rs 1,000, education and healthcare services.

  1. M
    Manoj
    Jul 9, 2017 at 2:45 pm
    Hi, i work in navi mumbai.....prior to GST, i use to get fruit bowl 35 but now after GST....dey hv increased the rate to 41rs. If fresh fruits are exempted or kept under low tax bracket as per your article, den why it is costlier in our office canteen....not only fruits but every food items hv became costlier after GST.....is it dey are over charging us....
    Reply
    1. Akash Kumar
      Jul 4, 2017 at 3:07 pm
      Price list of all items:cost with tax
      Reply
      1. Naveen Dhangar
        Jul 1, 2017 at 5:45 pm
        Farmers and vill pupils benifit in Gst services.its good....
        Reply
        1. A
          ayushi
          Jul 1, 2017 at 12:40 pm
          kindly discuss from other news channels as you all are saying some different stuffs on expensive and cheap things list.
          Reply
          1. N
            Narendra Thakur
            Jun 30, 2017 at 5:16 pm
            Even if there is lessening of tax i.e. GST on a product, the popular retail price of that product always remain intact. Particularly medicines are priced in such a manner that if one go on buying the same at printed price, he/she is just robbed of unreasonably. I don't find any mechanism to curb exaggerated print price on medicines particularly with the roll out of GST regime tonight/mid-night. A serious consideration should be given so that exaggerated prices are not printed on the product. Besides we should encourage 'FIXED PRICE SHOPS/MALLS' so that one buys the product at a similar price throughout the length and breadth of my country and not only countrymen benefit from this concept, foreigners on tourist visa in our country are treated alike. The ministry concerned should find out ways and means to have this concept conceived and implemented for all and sundries.
            Reply
            1. P
              Purav
              Jul 1, 2017 at 2:20 am
              What about the people selling stuff on tourist places or places where it is difficult to get products? Should not they be allowed to charge extra and not just the MRP for those products for the service they are providing?
              Reply
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