GST Rates Finalised: Check What will be cheaper and costlier in GST

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GST Rates Finalised: Check What will be cheaper and costlier in GST, Worried about GST rates? Know what gets cheaper and costlier from July 1, 2017. The GST Council, led by Finance Minister Arun Jaitley finalised on the tax rates under Goods and Services Tax (GST) on almost all items on Saturday. GST Registration process is started and we already provided GST Rates on all Goods and Services, The Goods and Services Tax (GST) regime is set to be rolled out from July 1, 2017 more than 11 years after a formal process to introduce it began. The GST Council Fixed rates on various items. Here is a list of items that might pinch your pockets or put a smile across your face under the new tax regime.

If you have been wondering about how GST will affect your everyday life, here is a quick explanation about how GST will impact the prices of goods and services.

Check What will be cheaper and costlier in GST

What will be costlier in GST Regime

1) Mobile Bills

Postpaid bills are goes up in GST Regime, With most of the services bracketed under the 18% slab, calls to friends and family will have to be shorter. Presently, the mobile bills are attached with a Service Tax of 15%.

2) Personal care items

Some Personal care products are goes up in GST Regime, Decking up for a weekend party might take its toll as cosmetics such as shampoos, perfumes and make up items will be under the 28% slab, up from the current 22%

3) Gold

GST Rate on Gold was finalised on GST Council 3rd June Meeting, Wedding expenses may surge under GST as the rate finalised for the yellow metal is 3%. Presently, gold is taxed around 2 per cent (1 per cent excise and 1 per cent VAT or value-added tax). However, some states charge a higher VAT. The prices may go slightly up though analysts believe tax incidence might not be very different.

4) Consumer durables

Consumer durables is goes up in GST Regime, If you are planning to set up a new household after 1st July, you may have to shell out a few extra bucks as reports suggest that TVs, ACs and Washing Machines will get expensive under GST Regime.

5) Cigarettes: The suspense continues…

GST Rate on Cigarette is not finalised at this time, Cigarette is the lonely child of GST regime as it is billed as the only item whose rate has not yet been fixed and is expected to be finalised in the next GST Council meet on June 11, 2017 It is almost certain that your puffs will be dearer from July 1 with the a cess on top of 28% tax is expected to be slapped on the sin sticks

What will be cheaper in GST Regime

Biscuits will attract a GST of 18 per cent. Currently, 20.6 per cent is weighted average for low-priced biscuits, the Finance Minister said.

1) Smartphones

Mobile Phones are goes down in GST Regime, India might well continue on the path of its smartphone revolution. The tax on smartphones will come down from 13.5 % to 12%

2) Movies

You can spend more on your pop corn the next time you go for a movie as taxation on entertainment, cable and DTH services shall also come down as the ‘entertainment tax’ levied by states has been subsumed in the GST and the effective levy has been kept at 18 per cent

3) Transport services

Your trip to the movie hall is also going to get cheaper as cab rides will attract a 5% tax against the current 6%

4) Foodgrains

The monthly grocery bill will give you reasons to be happy as foodgrains have been exempted from any of the tax slabs

5) Cars

Two-wheelers, large cars, white goods and SUVs are all expected to become cheaper. The dream of owning a Merc might just seem more viable with luxury car manufacturers already slashing prices ahead of the GST season

6. Branded goods:

Under GST regime, branded goods will be taxed at 18 percent. Only high-end hotels with Rs 5,000 plus tariff will attract 28 percent. Hotels with tariff below Rs 1,000 are exempted from GST. Currently, these goods are taxed around 23-24 percent. Tax rates on branded goods have been slashed to 18 per cent under GST Regime. Currently, the effective tax rate for the three items is around at 23-24 percent.

7. Hotels:

Staying at hotels post the implementation of GST will become cheaper as they are currently taxed at 22% and a posed to be under the 18% tax bracket.

8. Soap

which are currently taxed at 28% will be taxed at 18% under GST. Similarly toothpaste will come down from 22-24% current tax rate to 18%.

9. Personal Products –

Daily use products like soaps, hair oil and toothpaste is all set to become cheaper at 18 percent tax. They are currently taxed at 24-28 percent.. Hair oil will become cheaper as it will drop 10% from 28% current tax rate to 18% under GST.

 

On our website we have provided all the details of GST Act 2017. We hope that our article will be helpful for you to understand the GST Act 2017.

 

Check Also:

Section 21 of UTGST – Application of provisions of CGST Act

GST Registration Procedure for Existing West Bengal VAT Dealers – WBVAT

GST Compliances: Challenges and Opportunities – IT perspective

 

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