The Goods and Services Tax (GST), India’s biggest indirect tax reform, is here, bringing in radical tax reforms that affect everyone, particularly the common man. Prices have changed after the GST implementation. The GST council, responsible for issuing a set of rates, finalized tax slabs for goods and services. While 7% items are exempt, 14% are in the lowest bracket of 5%. Around 17% items are in 12% tax bracket, 43% in 18% and 19% in the top tax bracket of 28%. This translates into the fact that a majority of the items attract 18% or less GST.
Though rates on key daily use items like sugar, tea and hair oil have come down, there is an increase in luxury and sin products. Eating out is more expensive, particularly, in a five-star restaurant which is taxed in the highest bracket. I have tried to break down how rates under the GST rollout compare with previous tax structure. Here it goes…
Toothpaste and branded cereals to cost more: Consumer Goods Category
Rates go up For Mobile Phones and Refrigerators: Lifestyle and Home Category
Wallpaper and Paints In the Highest GST Slab: Construction material Category
Plastic Products Cost More: Category: Others