• Rajasthan

    Cong 94
    BJP 80
    RLM 0
    OTH 25
  • Madhya Pradesh

    Cong 109
    BJP 110
    BSP 6
    OTH 5
  • Chhattisgarh

    Cong 60
    BJP 21
    JCC 8
    OTH 1
  • Telangana

    TRS-AIMIM 89
    TDP-Cong 22
    BJP 2
    OTH 6
  • Mizoram

    MNF 29
    Cong 6
    BJP 1
    OTH 4

* Total Tally Reflects Leads + Wins

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

By: | Published: June 30, 2017 4:44 PM

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.

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 GSTGST 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.

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