Cheaper or costlier under GST: A quick look at some products & services

The Goods and Services Tax (GST), India's biggest reform in tax structure, became a reality today. All the goods and services in the country have been categorised under five tax slabs - 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent. Some of these products had higher effective tax rates before the GST but the new tax regime will reduce the burden on consumers on one hand while on the other hand some of the items will now be taxed at higher rate.  

Food

Cheaper: Exempted tax on most of the food items though some will have low tax category of 5 percent or 12 percent. Unpacked foodgrains, unbranded atta, maida, besan, fresh vegetables and fruits, and salt have been exempted from tax. Even most of the processed food items will come under the 5 percent tax bracket. Eating out at small restaurants will also cost less.

Costlier: Tax on tea and coffee goes high from 3-4 percent to 5 percent. Fine dining restaurants or those inside five-star hotels will get expensive.

Personal care

Cheaper: Soaps, hair oil and toothpaste cheaper at 18 per cent tax which were earlier taxed at 24-28 percent.

Costlier: Shampoos and deodorants

Travel

Cheaper: Airfares for economy class travel due to the 5 percent tax bracket under the GST.

Costlier: Airfare for business class and train tickets will cost more as they have been placed under the 12 percent tax bracket.

Automobiles

Cheaper: Bikes or scooters with engine capacity below 350 cc, some categories of commercial vehicles including three-wheelers, SUVs will get cheaper under the GST. The tax rate varies from segment to segment.

Costlier: Bikes which have an engine capacity of over 350 cc and autos.

Household items

Cheaper: Pressure cookers and pans will get cheaper as they will be taxed at 12 per cent GST rate (earlier it was 19.5 percent).

Costlier: TVs, refrigerators, ACs, or washing machine will have 23-28 percent tax now.

Movie tickets

Cheaper: Tickets that cost less than Rs 100 will get cheaper in most states with a new rate of 18 percent. Earlier it was 25-30 percents.

Costlier: Movie tickets above Rs 100 will cost more with 28 per cent GST.

Some other items:

Cheaper:

• Clothes and Shoes with a tax slab ranging from 0 to 18 per cent.
• Also Salad dressings, mayonnaise, weighing machinery, static converters (UPS), electric transformers, and winding wires will be less taxed.
• Postage or revenue stamps to have five per cent tax.
• Cutlery, ketchup, sauces and pickle will be taxed at 12 percent

Costlier

• Courier services, mobile phone tariffs, insurance premiums, banking charges, broadband services with 18 percent tax which was 15 percent earlier.
• Aerated drinks, tobacco and luxury goods.
• Mobile bills, tuition fees and salon visits with 18 percent tax.
• Buying a flat or shop will attract GST of 12 per cent as compared to six per cent currently.