GST impact on common man: So, GST is finally here and so is the headache to decide a new budget for yourself. From big corporate houses to small businesses and regular chaiwallahs, everyone is gearing up to get used to this new tax regime. GST is the biggest economic reform since India’s Independence so it is certainly going to affect your day to day life as well. The government has tried to ensure no shocks result from its move and the changeover to the new tax regime is smooth. Here’s how GST will impact your daily budget:
If going to work or college has put a hole in your pocket, GST will bring slight relief to that. Under the current system, 6% tax was imposed on cab rides which will now be reduced to 5%. Even though it is a marginal difference, you may end up saving a bit by the end of the month.
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2. Personal care
Ever desired to buy those fancy grooming products but decided against it since the price was too high? Well, your time has come. Tax on personal care products like soaps, hair oil, detergent, kajal, tissue paper and toothpaste has been brought down from 24-28% to 18% which certainly help you save a lot of amount.
Not just grooming but getting ready for parties, college and work will also get cheaper. While silk and jute have been exempted from taxes, cotton and natural fibre will be taxed at 5%, man-made fibres at 18%, and apparel costing below Rs 1,000 at 5%. Apart from this, GST rate of 5% will be imposed on footwear below Rs 500.
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4. Electronic items
Now you can depend more on electronic items in your daily life as prices of geysers, static converters (UPS) and electric transformers will be lowered. Mobile phones will also get cheaper as the tax levied on them will be reduced to 12% from 13.5%. Apple has already slashed the prices of iPhones by 7.5%. To know the latest prices click here.
The automobile industry will get a major boost as the prices of entry-level cars are expected to drop significantly. Two-wheelers with engine capacity below 350 cc, SUVs and three-wheeler commercial vehicles will now be cheaper.