1st July changed a lot of things in India. The following day, as I walked down the street and bought my regular cup of coffee I was greeted by a G.S.T. of 18%. My next few stops gave me a rough idea of items that had become costlier and those that had become cheaper. Take a look at my before and after report card for items under the G.S.T.
|Fresh Vegetables & Fruits
||0%||0%||Fresh and unprocessed fruits and vegetables have been exempted under GST But dry fruits and preparation from fruits and vegetables which were taxed at a rate of 5% earlier are now taxed at 12% and 18%.
|Soap, Hair Oil, Toothpaste
||28%||18%||These consumer items have become cheaper by almost 9-10% passing on the benefit to the common man; however other items such as shampoo and deodorant have become costlier.|
|Cabs||6%||5%||Initially Ola and Uber bookings were taxed at 6% but under G.S.T they will come down by 1% making travelling by cabs cheaper. Other public transport remains unchanged after G.S.T.|
|Shampoo & Deodorant
||26%||28%||Though this is a personal hygiene product, the G.S.T. council smelled it as a luxury item and made personal hygiene more expensive.|
||14%||18%||This industry already faced backslash post demonetization but now with G.S.T. , it will get affected further.|
|Tea & Coffee
||6%||5%||Well your morning will definitely see a smile because tea and coffee becomes cheaper post G.S.T. But if you decide to sip on tea and coffee at a café you might have to pay extra due to 18% G.S.T. at air conditioned cafes and restaurants.|
|Milk & Eggs||0%||0%||Apart from milk and eggs a lot of other household items are exempt under G.S.T.|
|Tickets priced below Rs. 100 will be taxed at 18%. Initially there was service tax and entertainment tax on movie tickets, but now only G.S.T. of 28% will be applicable.|
|Mobile Bills||15%||18%||After G.S.T. tax rates on mobile bills have become 18%. This will be detrimental to this industry as they are already facing stringent competition from Reliance Jio. So the end user will face the burden of this increased tax.|
|Medicines||4%||5%||Most of the drugs mentioned under the 5% bracket are used to cure malaria, HIV-AIDS, tuberculosis, and diabetes which were previously charged VAT around 4%.However, Ayurvedic drugs or medicines will become costlier under G.S.T. Source: clearTax|
That was my first day with G.S.T. Tell us about yours in the comments section below!