How GST will impact your household budget
Goods and services tax (GST) comes into effect from 1 July. ET Wealth analyses the impact on some basic expenses in the household consumption basket.
The price difference will be bigger for SUVs (55% to 43%) compared to small cars (30% to 29%).
Base price : Rs 4.75 lakh
Total taxes now* : Rs 1.43 lakh
Under GST : Rs 1.38 lakh
DURABLES : Refrigerators and washing machines
For most white goods, there won't be much difference in price as new rates will be close to earlier ones.
Base price : Rs 20,000
Total taxes now* : Rs 5,300
Under GST : Rs 5,600
While premium of term plans and non-life policies are taxed, only charges (mortality and AMC charges, etc) in other life policies attract GST.
Base price : Rs 15,000
Total taxes now* : Rs 2,250
Under GST : Rs 2,700
GOLD ORNAMENTS : Making charges Rs 10,000
The yellow metal will become dearer as there will be 3% GST on gold and 5% on making charges.
Base price : Rs 60,000
Total taxes now* : Rs 1,800
Under GST : Rs 2,000
If you settle for a room that costs less than Rs 1,000, there will be no GST to pay. Then it rises progressively. Anything above Rs 5,000 will attract 28%.
Base price : Rs 7,000
Total taxes now* : Rs 1,400
Under GST : Rs 1,960
REFINED COOKING OIL
Hair oil prices will stay high due to 18% GST. But coconut oil being refined cooking oil, will be taxed at 5%.
Base price : Rs 200
Total taxes now* : Rs 23
Under GST : Rs 10
AIR TRAVEL : Economy
Taxation gap between economy and business class has increased with GST.
Base price : Rs 5,000
Total taxes now* : Rs 300
Under GST : Rs 250
TRAIN TRAVEL : AC coaches
While those travelling by local trains or in sleeper class are not affected, first-class and AC compartment travellers will pay more.
Base price : Rs 3,000
Total taxes now* : Rs 131
Under GST : Rs 150
TELECOM : 2 phones + 1 DTH bills
Since these services will not get much input credit, you have to bear the burden of hiked rates.
Base price : Rs 2,500
Total taxes now* : Rs 375
Under GST : Rs 450
EATING OUT : For a family of 4
A non-AC eatery will only charge 12% GST. However, eating at a restaurant in a 5-star hotel will mean shelling out 28% in GST.
Base price : Rs 2,000
Total taxes now* : Rs 270
Under GST : Rs 360
APPAREL : Readymade
Due to industry pressure, GST on garments priced below Rs 1,000 has been brought down from 12% to 5%.
Base price : Rs 2,000
Total taxes now* : Rs 130
Under GST : Rs 240
ENTERTAINMENT : Cinema for a family of 4
Reduction in GST for tickets up to Rs 100 will benefit single screen cinemas in small towns.
Base price : Rs 1,200
Total taxes now* : Rs 360
Under GST : Rs 336
* This includes excise, sales tax, VAT, entertainment tax, luxury tax, etc; Average tax considered.
These are exempt from GST
* All unprocessed cereals like rice, wheat, etc.
* All unprocessed milk, vegetables, meat, fish, etc
* Train travel by local and sleeper class
* Healthcare (but not medicines)
* Hotels, lodges with room rent less than Rs 1,000
* Kid’s colouring /drawing books
* Bindis, sindoor, bangles, etc