The GST (goods and services tax), which is perhaps the most ambitious tax reform in India after independence, will be rolled out from July 1. GST is a unified tax and wants to make whole of India a common market.
There is a lot of anticipation in the public on whether GST will benefit them or not and what will be cheaper and what will be costlier.
We have prepared a short list of the effect of GST on the common man.
* Tobacco products, soft drinks and luxury goods.
* Mobile bills, insurance premiums, banking charges, internet, wifi and DTH services will get costlier.
* Courier services and air tickets.
* Products like soap, shampoo, toothpaste, hair oil will be cheaper as they are kept under 18% slab.
* Tea, milk, and coffee are in 5% slab. A very good news for the lovers of the hot beverages.
* Tax on branded goods will be 18% from current 22-23%.
* Foodgrain and processed food to get cheaper.
* Paints, electronics, two-wheelers and entry level cars will be cheaper.
There are also products on which there will be zero tax.
The Business Standard lists them as “No tax will be imposed on the following items”:
Fresh meat, eggs, milk, buttermilk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, stamps, judicial papers, printed books, newspapers, bangles, handloom etc. “