The big news which has enveloped the entire Indian market is the GST, also known as the Goods and Services Tax. Despite witnessing a Hindustan-bandh scenario ahead of GST rollout tomorrow, the GST fervor hasn’t died down.
The biggest tax reform in India after Independence, GST is a paradigm shift to suffice the “One Country, One Tax” objective. But what really is GST. How will it affect our daily lives, and how is it different from the earlier tax regime. If these are questions which are cracking you up, you are at the right place.
Necessity goods become cheaper; Luxury goods dearer
While some necessity goods are becoming cheaper from July 1, another set of goods is becoming costlier. There are mainly five tax slabs under GST: 0%, 5%, 12%, 18%, 28%. All 1200 varieties of goods will be leviable in either of the five slabs. GST is a progressive method; it is driven by the idea to make necessity goods cheaper and luxury goods dearer.
Grocery and food items
Food items will become comparatively cheaper as they attract 0% or lower tax rate. Pulses, foodgrains, curd, lassi, atta, maida, besan, salt, jaggery, fish, chicken, buttermilk, fruits and vegetables have been exempted under GST and hence, will get cheaper.
GST aftermath on your everyday Fashion
While apparel and footwear are speculated to become cheaper, here is the exact tax levy which will be attracted after GST.
- Footwear below Rs 500 will attract a 5% tax levy
- Footwear above Rs 500 will attract 18% tax rate
- Clothes below Rs 1000 will attract a 5% tax rate
- Clothes above Rs 1000 will attract a 12% tax rate
Cheaper Cosmetics after GST
From hair oils to toothpaste, you will save big amounts. Personal care items have been bracketed into 18% tax rate, against the earlier 28%. Hence, you are in for big savings on cosmetics.
However, deodorants and shampoos will become costlier after GST.
Hotels with a day tariff of below Rs 1000 are expected to get cheaper. There are many segments and demarcations in the hotel business, as far as the GST is concerned. Lodges which charge up to Rs 1000/day will attract 0% tax rate.
AC hotels that serve liquor and hotels with room tariffs between Rs 2,500 and Rs 7,500 will attract 18 per cent GST. Hotels with room tariffs above Rs 7,500 and 5-star hotels will come under 28 per cent GST, only making you curse the hotel for extra luxury and pampering.
Eateries will become dearer
If you are planning a big bash at your favourite AC restaurant in your posh locality, get ready to spend more than you had expected. AC restaurants will attract a 10% HIGHER tax rate than the non-AC restaurants.
- AC restaurants – 28% tax rate
- Non-AC restaurants – 18% tax rate
Happy news for Mommies
Kitchen darlings have good days coming. Kitchen appliances like pressure cookers, pans will get cheaper as they will now attract only 12% tax rate under GST, as against 19.5% earlier. Moreover, agarbatti, coir mats, domestic LPG, biogas, matting and floor covering will attract only 5% GST.
Take Services seriously
Courier services, insurance premiums, broadband services, mobile charges, banking charges, will become costlier as they will attract 18% GST, against the earlier 15%.
Travel Trivia after GST
Airline fares and railway tickets will become costlier as they have been bracketed into the 12% tax rate.
Appliances like television, air-conditioner, washing machine, refrigerator will attract a 28 per cent GST, which is higher than the current 23-28% tax rate. While mobiles will attract a 12 per cent GST, Computers, camera, printers, speakers and monitors, CCTV will attract an 18% tax rate.
So, folks now that you know what will become cheaper and what will not why not just rush to the nearby supermarket to stock up your favourites for the months ahead. After all, money saved is money earned! Why are you waiting? Just pick up your shopping bags and get going!