GST regime: Know what gets cheaper and costlier from July 1
The Goods and Services Tax (GST) Council today concluded its latest round of meetings with the decision to apply the same four tax rate slabs – 5, 12, 18 and 28 per cent.
The Council, headed by Union Finance Minister Arun Jaitley, finalised tax rates for 1211 items with a majority of items kept under a tax rate of 18 per cent.
Here is a list of items that will become cheaper and costlier when the new tax regime comes into effect from July 1:
Soaps, toothpaste, hair oil, edible oil, sugar, paint, cement, electrical items, consumer durables to get cheaper.
Processed food items to be cheaper. These items will be taxed at 5 per cent instead of 15 per cent.
Branded items to see price drop. At present, branded goods attract 23-24 per cent, but from July 1, when the GST comes into effect, these products will attract 18 per cent tax.
Staying at hotels will also become cheaper. The GST council has slashed tax from 22 per cent to 18 per cent. Similarly, restaurants will also charge 18 per cent tax instead of 22 per cent.
Services, entertainment and movie tickets services to levy 18 per cent.
Entry level cars, two-wheelers, are expected to get cheaper.
Mobile bills, insurance premiums, banking charges, internet, wifi and DTH services to get costlier.
Luxury goods, aerated drinks, tobacco products to be taxed at 28 per cent.
Most mobile phones to get costlier by 4-5 per cent with the government imposing a GST of 12 per cent.
Five-star restaurants to attract tax up to more 28 per cent.
Motorcycles of more than 350 cc engine capacity to attract a total of 31 per cent tax.
All cars, buses, trucks and motorcycles including mopeds as well as personal aircraft and luxury yachts to attract a peak GST of 28 per cent.
Chocolate not containing cocoa, pan masala, aerated water, paint, deodorants, shaving creams, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, automobiles, motorcycles, aircraft for personal use.
No tax on the following items:
Fresh meat, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, stamps, judicial papers, printed books, newspapers, bangles, handloom etc.