How these 10 daily use items will hit your pocket under GST!
by Paras Mehra 3.74K
Introduction
Every person in India is discussing about the GST and its impact on his pocket. There is no doubt that the GST shall have impact on the every person’s pocket and hence, one needs to plan properly. There will be some things which will be get cheaper and there will be some items that will get costlier and hence, beware of the GST rates so that you can decide what to buy now and what to buy after GST implementation.
As said, to help you with your analysis on what to buy now and what to buy after 1st July, we have summarized 10 daily used items, which you should buy after 1st July, 2017 i.e. after GST is implemented.
#Item No.1 - GST Impact on Smartphone Prices – Smart Phone to get Cheaper under GST
Smart phone is no more a luxury rather a daily needs. We cannot even imagine our life without smart phones. Currently mobile phones attract Central Excise and VAT. On an average basis, total tax incidence on Smartphone is around 13 to 15%.
However, under GST, the tax rate is fixed at 12%. Also, there are other factors which will also bring down the cost of smart phones.
Therefore, if you are planning to buy a Smartphone, then buy it after 1st July, 2017 to buy it cheaper.
#Item No.2 - GST Impact on Branded Cloths (LP, Levis) – Branded cloths to get Cheaper under GST
We have good news for all branded cloth lovers and the prices of the branded cloths are going to fall once GST is implemented. Currently under VAT, the average tax incidence on branded cloths is 23 to 24%.
But under GST, branded cloths are covered under the slab of 18%. Hence, the prices are going to fall by atleast 6 to 8%. Hence, you will be able to buy more in same amount of money.
#Item No.3 - GST Impact on price of Ayurveda products (Patanjali) – Ayurveda Products to get costlier under GST
We have bad news for all Ayurveda products lovers as the prices of these products will going to rise once GST is implemented. Currently all Ayurveda products are taxed on an average of 5%.
But under GST, the Ayurveda products will be taxed at 12% and hence the price of these products will rise by atleast 7 to 8%.
#Item No.4 - GST Impact on price of medicines – Medicines to get costly under GST
This was little surprising to everybody because medicines prices shall impact the pocket of middle and poor people in India. The raw drug which is used to manufacture the medicines to cure TB, Malaria, HIV has been proposed to be taxed at 18% which is too high.
However, some experts believe that GST will not impact the prices of medicines and there will be a slight increase of 1.8% which pharma companies shall absorb.
#Item No.5 - GST Impact on price of Paints, Chocolate (Asian paints, Distemper, Dairy Milk) – Paints, Chocolate to get costly under GST
People in India used to paint their houses near Diwali festiwal to clean their house to welcome Goddess Laxmi in their house. However, while doing that people are not aware the Indian government is considering this as a luxury item.
Yes, it may surprise you but paint has been kept under the 28% tax bracket and hence the price of paints to set to rise under GST regime. The managing director of Nerolac company said that the decision to tax paint at 28% is detrimental to business and has come as a shock to us.
#Item No.6 - GST Impact on price of Motorcycles – Motorcycles to be cheaper under GST
To bike lovers in India, we have good news for you. The price of motorcycles shall going to fall under GST regime due to various reasons. Hence, if you are planning to buy a motorcycle, then buy if after 1st July, 2017.
Under GST, the two wheelers are proposed to be taxed at 28% against the current tax of 30%.
Bajaj Auto slashes price of Motorcycles by Rs.4,500
Bajaj auto has become the first company to pass on the saving to the ultimate customers and that too before even GST is implemented. The Bajaj auto has slashed the prices by Rs.4,500.
#Item No.7 - GST Impact on Coaching/tuitions – Coaching/tuitions to get costly under GST
To all the students who take coaching and tuitions to sharpen their skills, we have bad news for you. The tuitions and coaching will be going to be costly under GST.
Currently, commercial coaching and tuitions are taxed at 15% service tax. But now
, the same shall be charged at 18%. Hence, the aforesaid services shall be going to be costly by 3%.
#Item No.8 - GST Impact on Mobile and Internet bills – Mobile and internet bills to get costlier
Common man be prepared! because the mobile and internet bills are going to rise atleast by 3%. Currently, the mobile and internet bills are taxed at 15% service tax. However, under GST, mobile bills and internet bills are proposed to be taxed at 18%.
#Item No.9 - GST Impact on primary products like Milk, Curd – Milk, vegetables, and pulses etc will be cheaper
This could be the biggest gift by the government to all the people of India. All the items of basic needs has been exempted from GST tax and hence, their prices will going to fall once GST is implemented.
#Item No.10 - GST Impact on Movie tickets – Movie tickets shall be costlier under GST
Government thinks that only rich people goes to watch movies in India and common man has no right to watch movie as they treat it as luxury. The movie ticket will going to cost you more because they are categorized under slab rate of 28%.
However, government has put a clause that movie tickets upto Rs.100 shall attract only 18% only to fool people. This is because it is almost impossible to find movie tickets costing less than Rs.100 atleast in metro cities.
Conclusion
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