Finally, the single biggest tax reform the country has seen after independence i.e. Goods and Services Tax will be rolled out on 01st July 2017. It is also considered to be the most significant and complex economic reform for India.
Under GST, multiple central and state taxes will be combined into a single tax.
Tax on many of the goods will be significantly reduced benefiting Indian consumers. Indian manufactured products will get more exposure in the international markets leading to growth in the economy.
Since the start date is nearing, people are most interested in knowing what is going to be cheap and expensive after GST rolls out. Especially people are keen to know how the price of basic household items will change after GST implementation and how their budget will be impacted.
So here’s the list of most commonly used goods/commodities and services which are expected to see rise or fall in their prices after GST implementation:
|Food related items that will be CHEAPER||Food related items that will be EXPENSIVE||Personal care items that will be CHEAPER||Personal care items that will be EXPENSIVE||Utility Items/Services that will be CHEAPER||Utility Items/Services that will be EXPENSIVE||Exempt from Tax|
|Cooking gas||Aerated Drinks||Soap||Hair Dyes||Smartphones made in India||Television||Fresh fruits|
|Mustard Oil||Instant Coffee||Toothpaste||After Shave Lotions||Large cars||Mobile phone bills||Vegetables|
|Noodles||Chewing gums||Tooth powder||Deodrants||Sports Utility Vehicle (SUV)||Refrigerator||Pulses|
|Aluminium foils||White Chocolate||Hair oil||Shampoos||Electric vehicles - |
2 wheeler and 3 wheeler
|Milk Powder||Cocoa chocolates||Kajal||Sunscreen||Two wheelers||Restaurant bill in AC restaurants||Health|
|Butter Milk||Wafers coated with chocolate||Beauty products||Taxi aggregators||Movie tickets||Education|
|Unbranded Natural Honey||Custard powder||Perfumes||Car batteries||Cigarettes||Milk|
|Cheese||Branded foodgrains||Ayurvedic medicines||Paints||Tobacco||Paneer|
|Dairy Spreads||Branded flours||Medicines||Fans||Commercial Vehicles||Curd|
|Spices||Water heater||Life insurance premium||Eggs|
|Wheat||AC Train Travel||General insurance premium||Meat|
|Rice||Clothing below Rs.1000||Textile||Wheat|
|Groundnut Oil||Agarbatti||Wifi and DTH services||Animal Slaughtering and services|
|Palm Oil||Cement||Air conditioner||Non AC train travel in local|
|Sunflower Oil||Coal||Washing machine||Non AC train travel in metro|
|Coconut Oil||Kerosene Pds||Eating out in 5 star hotels||Maida|
|Mustard Oil||X-Ray Films For Medical Use||Sporting events||Besan|
|Sugar||Diagnostic Kits And Reagents||Gambling||Salt|
|Palmyra Jaggery||Plastic Tarpaulin||Casinos||Puffed rice|
|Sugar Confectionery||School Bag||Business class air travel||Organic Manure|
|Pasta||Exercise Books||Financial transactions and banking charges||Animal feed|
|Spaghetti||Kites||Courier services||Fire wood|
|Macaroni||Children's Picture||Goods transport|
|Fruits||Drawing Or Colouring Books||Small cars|
|Vegetable Items||Silk And Woollen Fabrics||Luxury Goods|
|Several Food Products||Helmet||School fees|
|Pickle||Economy-Class Flight Fare||Mobile phones made outside India|
|Murabba||Fly Ash Bricks Blocks||Antique gold coins|
|Chutney||Glasses For Corrective Spectacles||Music systems|
|Sweetmeats||Fixed Speed Diesel Engines Of Power Not Exceeding 15Hp||Home theatres|
|Ketchup||Tractor Rear Tyres And Tractor Rear Tyre Tubes||Hybrid cars|
|Instant Food Mixes||Hotel room booking below Rs. 1000||LED Television|
|Mineral Water||Theme park visits||Electronic iron|
|Forks||Hotel room booking above Rs. 1000 will have different tax|
|Ladles||Luxury hotels stay|
|Cake Servers||Smoking mixtures for pipes & Cigarettes|
|LPG domestic||Students' colours|
|Kerosene PDS||AC train tickets|
The goods and service tax is currently fixed under four tax slabs: 5%, 12%, 18%, and 28%. There has already been delay in GST implementation. However 01st July 2017 has now been finalized.
So as an Indian we should support one nation – one tax system. And remember big change happens for good. Government has made sure to not burden common man with high inflation.