GST is all set to roll out from July 1, 2017. Till now India was a country with varied taxation systems but now, from the midnight hour of Friday, GST will be levied all throughout our country and there would finally be a unified taxation system in our country.
There has been a lot of discussion regarding the impact of GST in a middle class home. Since the majority of Indians are middle class people, there has to be a need to make them aware of what items of their necessities privilege are going to be cheaper or expensive after the roll out of GST.
Starting from a rate of 5%, the highest slab of Tax under GST is 28%. Here is your Point By Point Guide to the new Taxation system.
Let’s discuss in detail how the roll out of GST will affect your live. Most of the grocery and household items will remain unaffected by GST initially because the manufacturing companies are not sure how GST will affect their operations cost.
These things will get cheaper after GST
For a common man’s interest and well being, most of the food items are exempted from GST. There are a few which fall under the category of 5% or 12% tax rate.
- Unpacked food grains
- Unbranded ata
- fresh fruits and vegetables
will become cheaper as they have been exempted from tax.
Under the current scheme of tax where the tax is levied at many stages and by many authorities, personal care items like soaps, hair oil and toothpaste were getting taxed at a rate of 23-24%. They will also become cheaper as they will now be taxed at a unified rate of 18%. Many processed food items will also become cheaper as they will now be taxed at a rate of 5%.
What will get costlier:
- Tea, coffee and masala will get costlier as it will be taxed at a rate of 5%. Under the current scheme of tax the rate of tax comes to around 3-4%.
- Aerated drinks, tobacco, luxury goods will all be taxed at 28 percent. So, say no to clod drinks. Save money and save your health too.
- Shampoos and deodorants will get costlier.
What else will become cheaper or costlier?