But while a lot has been said about the positives and negatives of GST and its impact on businesses and Indian economy, what matters to a common man is the GST impact on household expenses. Let us have a look at how this unified tax regime has impacted households in the last two years-
1. GST on Daily Use ProductsThe biggest portion of a standard monthly budget is generally spent on daily use products. This includes food items, household products, personal care products, and miscellaneous items such as wristwatch, accessories, leather bag, automobile, and more.
While GST has reduced the cost of many of these products, the cost has increased in some cases. For instance, if the base price of refined cooking oil was Rs. 200, the tax on the same was Rs.22-23 before, but it has now fallen to Rs. 10. On the other hand, things like appliances have become more expensive.
2. Services Under GSTWhile GST has mostly reduced the cost of many of the daily use products, the same cannot be said for services generally used by households. Most of the services such as financial services and telecom services have become slightly more expensive.
Even transport services have become expensive depending on the travel class you generally prefer. For instance, travelling in business class has become more expensive while economy tickets have got cheaper.
3. Exemptions Under GSTTo further reduce the impact of GST on common man, the government has also exempted many goods and services. GST exemptions are available on unprocessed milk, meat, fish, vegetables, unprocessed cereals, education, sleeper class and local train travel, and more.
Healthcare too is exempt from GST; however, medicines continue to be taxed under 5%, 12%, and 18% GST tax brackets.
Has GST Benefited a Standard Indian Household?Overall, it can be said that GST has been able to reduce household expenses. Several daily use products are now under a lower tax rate, and several of them are also exempt from GST. But if you prefer branded products or more convenience, you’d mostly be required to pay a higher price. If you see that your monthly budget has increased after GST has come into effect, you can take corrective measures as cheaper alternatives are available in most cases.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
Income Tax Benefits on Costs of Education under Section 80E
With the proliferation of new career opportunities, getting the right professional skills has become immensely important over the years.
Why Individual Health Insurance is a Must Buy Over Corporate Health Insurance?
It is a known fact that medical inflation is growing at twice the rate of regular inflation. While most salaried employees are entitled to health insurance provided by their employer, investing in individual health insurance, personalised to suit specific health conditions, has its merits.
What Is Trade Price In Stock Market & How Does It Work?
Also known as the market price, trade price of a commodity is the price at which it is currently selling in the market. In the context of trading, the price at which a share is being purchased or sold in the stock market at a given point of time is known as its trade price.
5 Types of Business Loan For Woman Entrepreneurs
There are now many different types of loans options in India for women wanting to explore their entrepreneurial dreams. Read this post to know 5 of the most popular options.