In order to boost growth and put more money in the pocket of honest taxpayers, the FM also revised some direct and indirect taxes which will become effective from the new financial year. With this while some things will become costlier, many others will become cheaper also.
Although Budget 2017 fell short in steps to revive the economic growth, it did well on macroeconomic stability by promising to continue economic reforms, control inflation and ensure prudent fiscal management. In order to boost growth and put more money in the pocket of honest taxpayers, the FM also revised some direct and indirect taxes which will become effective from the new financial year. With this while some things will become costlier, many others will become cheaper also.
Here we are taking a look at a few things which will become either cheaper or costlier from today. Here they go:
Things which will become cheaper from April 1
1. Non-residential Post Graduate Programme in Management for the Post Graduate Diploma in Management conducted by the Indian Institute of Management (IIM) is now exempt from service tax. So these courses are going to be cheaper.
2. Group Life Insurance Schemes of the Central Government for the members of Army, Naval and Air Force as these service are now out of the net of service tax.
3. Domestic RO water filter and its RO component will become cheaper due to slashed duty rates.
4. Liquefied Natural Gas (LNG) to be cheaper as Basic Custom Duty (BCD) is reduced from 5% to 2.5%.
5. Leather product will be cheaper as the BCD is reduced from 7.5% to 5% on Vegetable tanning extracts, namely, Wattle extract and Myrobalan fruit extract used in leather goods industry.
6. Online Railway Tickets — Service charge on e-tickets booked through IRCTC has been withdrawn. Hence booking railway tickets will now be cheaper.
7. Solar Powered Equipments to be cheaper due to reduction in BCD on solar tempered glass used in solar panels and parts or raw materials for use in the manufacture of solar tempered glass.
8. POS (Point of Sale) machines card and fingerprint readers to become cheaper as various duties (BCD, CVD, SAD) on various components used in its manufacture is waived off.
9. Fuel cell-based power generator systems to be cheaper due to reduction in the custom duty rates from 12.5% to 6%.
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Things which will become costlier from April 1
1. Mobile phones manufactured in India will become costlier with the imposition of 2% SAD on imported printed circuit boards used in making mobiles. This is to promote the ‘Make in India’ initiative of the Modi Government.
2. LED lights assembled in India will also become costlier due to imposition of BCD-5%, CVD-6% & Excise Duty–6% on the various components used in its manufacturing.
3. Cashew Nuts (Roasted and/or Salted) to become costlier as custom duty on their import increased from 30% to 45%.
4. Cigarettes, cigar, chewing tobacco, cheroots, bidis, pan masala to get dearer as both custom and excise duty increased on these products.
5. Silver medallion, silver coins with 99.9% or more purity to become costlier due to hike in customs duty.
6. Polymer-coated MS tapes used in manufacturing of telecommunication grade optical fibers to get costlier as the BCD increased from 0% to 10%.
(With inputs from Chetan Chandak, Head of Tax research, H&R Block India)