GST rollout: The Goods and Services Tax (GST) will be rolled out on July 1. The tax will replace close to a dozen central and state taxes and reduce them to a single tax. The new tax regime will make most items cheaper as multiple taxes won’t be levied on the same product and the cross-country movement of goods will also become smoother and simpler. The GST will be levied at the first point of transaction in sales of goods and services, while the liability to pay the tax will arise at the time of supply. GST will be payable on the transactional value and would include prices such as packing and commission. We have compiled a list of items whose cost will change after GST is rolled out:
1) Clothes made from natural fibers will cost less as they will be taxed at 5 percent. The tax rate of 5 percent will not be applicable on silk and jute, hence the price of silk sarees is likely to go up.
2) Gold, which is an item close to the heart of many Indians, will be taxed at 2 percent from July 1.
3) After the GST is implemented the cost of transportation and distribution will be lowered, this means that logistics firms stand to gain from the new tax regime.
4) Exporters will gain from GST as the government has kept a zero percent tax for exports. Exporters will also profit as they will now be able to receive refunds on raw materials used, the exporter’s money can be blocked due to the time it would take between the tax is paid and the refund is received.
5) The GST Council has suggested cess on aerated drinks and luxury automobiles at 15 per cent and on cigarettes at 290 per cent, this would make these items more expensive.