GST is being considered as a complete game changer for the Indian economy. While the overall impact is more so positive considering the slew of benefits it will infuse in the Indian market there are certain things which will shake the structure of the Indian household budget like some of the commodities which will get expensive after GST.
So, without wasting any more time let’s head towards the fluctuations that are likely to arise from this change.
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The following are the different rates which are proposed under gst 5%, 12%, 18%, 28%, (+luxury cess). Before we get to what gets expensive and what cheaper there’s something amazing and that is, after GST almost 50% of the items in the consumer price index basket which includes foodgrains, milk, essential medicines, newspaper, eggs, milk, butter won’t be attracting any tax. Yes, it did bring a smile on your face, great, the best way to start anything.
But don’t just fade that smile too soon, we are still talking about the money you’ll be saving as a result of the below-mentioned goods seeing a plunge in the prices.
THE GOODS THAT WILL SAVE YOU SOME MONEY
Currently, the manufactured consumer goods attract somewhere around 25 to 26 percent of the tax due to a variety of taxes levied on them like Value Added Tax (VAT) and excise duty. After GST these taxes will take a dip to fall at 18% which will result in lowering the burden on your pocket.
These things you will be able to do at a price lower than what it is now
- As the entertainment tax goes down you’ll be able to go to movies at a cheaper fare
- You can move around burning less money as the prices of two-wheelers, SUV cars, and entry level cars are expected to fall
- Treat yourself without a sickening bill as over the counter drugs and some pharma products will attract less tax
- The prices dip in water to build some amazing lather, buy yourself your fav shampoo.
- Please your taste buds with lavish chocolates that transport you to some other world
- Electrify your life with mobile, air conditioner, LEDs and other electronic items
- Buy yourself that beautiful dress at a little smarter price
- Sell easily with Point Of Sale (POS)
- Be more secure with fingerprint scanner
- Save earth with solar panels
- Paint those walls
- Build bridges and shelter with cement
- Have an awesome pair of footwear (those below Rs 500 will attract a tax of 5% and those above it will be charged with 18%)
THE SERVICES AND PRODUCTS THAT WILL MAKE YOU DIG DEEPER IN YOUR POCKET
As of now, the rate of service tax sums up to be 15% except for a few services which include ambulance, cultural, and religious services. Under GST the rate will surge to 18% which will make these services a little more expensive and hard to digest.
The following things fall under the category of being a little expensive after GST
- Going out for dinner or planning a trip to hotel
- Smoking is injurious to health both for you and your bank balance
- Luxury cars are now even a more distant dream
- Insurance premiums
- Watching daily soaps, DTH, cable TV, and courier services
- Aerated drinks
- Rail transport, air travel, and the cabs
- Jewelry and high-end accessories
- Mobile bills and internet packs
Online shopping will probably stay neutral as the increase in tax will be set off by the ease in transportation and a uniform tax rate for all goods moving from one state to another.
THE SIMPLE STEP YOU NEED TO TAKE TO TRANSIT TO GST
Change can be stressful if not seen and worked through, with GST coming in after months of current tax practices it becomes a little more complex but fret not we have the right tool to wash off the stress wrinkles and lower the tone of change to be pleasant to your mind. We have been keeping up with the changes and have prepared for what’s coming. We wish to take you with us to a GST complaint future.
S.I.M.P.L.E, our enterprise system is GST ready with every functionality that is a must have for a smooth transition. Here are some must-have functionalities.