Impact Of GST On Your Household Budget
The tax system in India has seen an overhaul with the launch of Goods and Services Tax (GST) from July 1. The GST, in its making, was met with both inhibitions and excitement. While the country is still debating the impact of the four-structure tax system, some of its benefits have already started to trickle down to the masses.
India now has four tax slabs – 5%, 12%, 18% and 28% and an exempt and additional cesses category. Though GST will impact the budget of everyone differently, depending on their lifestyle patterns, the change in household expense is set to be more or less the same for everyone.
Some household articles have seen a price increase, while the prices of many others have come down. Food products have seen a GST imposition of 0-5%, while toiletries have seen an imposition of 18%. Let us take a look at the overall impact of GST on your basic household expenditure:
Groceries –While some grocery items like milk, bread, pulses, flour, fruits and vegetables, tea, coffee and basmati rice have been left outside the ambit of GST, other items like packaged curd, paneer, cheese, biscuits, corn flakes, shampoos, face creams, hair oils, medicines, etc. have become cheaper. Things which have become expensive include packaged chicken, butter, bhujia, etc.
Lifestyle expenses – Entertainment expenses have come down as the tax has been reduced to 28% from 30% earlier.
Airfares – The economy class airfare too has come down as the new tax regime levies 5% tax on airfare against the old rate of 9%.
Cab rides – Your monthly expense on travel is sure to come down if you take cabs for regular commute as the service tax has now been reduced to 5% from 6%.
Telecommunication services – DTH and cable TV charges have become dearer as these services will charge 18 per cent GST instead of 15% service tax.
Education – Pre-schools and school education will remain tax free under GST. Services offered by colleges and higher universities will attract 18% GST levy as compared to 15 % earlier.
Luxury spending – Stay in 5-star hotels, restaurant bills etc have gone up with the implementation of GST. Luxury expenses are now taxed at 28%.
Car prices – Many companies have revised the prices of their car models after the GST roll out. Now car purchases are taxed at 28 per cent GST with an additional cess between 1% and 15%. Cars with diesel engines less than 1,500 cc will attract 3 per cent cess, while small cars with petrol engines less than 1200 cc will be imposed with 1% cess. Big cars with engines over 1,500 cc and SUVs with length over 4 metres will be imposed with 15% cess in addition to 28% GST. Electric vehicles have been kept at 12%.
GST has certainly brought in changes in prices of various items, but what you need to do is plan your household budget smartly to avoid getting into any financial mess.
I feel GST impact is great to all the genuine people of India.
It should be beneficial for society in the long run. Hope so it will be a good step for bring transperancy and curbing tax evasion. Lets see what it will do.
GST concept must be made clear as soon as possible among the masses so that problems and protests get settled.
gst
kill indians
Yes kill Indians! Let only the Bharthiyaa finally remain & survive! Viva!!
May I ask one question,
To whom you are giving the call ?
GANDU TUJHE KUCH PATA BHI HAI GST KYA HAI KHALI LIKH DIYE BHOSDI K
Yes GST IS GOOD BUT AFTER GST ALL PRICES SAME .
as per my knowledge It should be beneficial for society in the long time after clear particular items rate clear ,.
as per my knowledge It should be beneficial for society in the long time after clear particular items rate ,but some rate is high.
I dont thing that a common man will get benefit of GST infact the cost will increase.
in the name of Ģ S T unauthorised harges are madder by benders Ex Tea stall Tec
points to be reconsidered
1 Reverse charge GST
2 Responsibility of the buyer if supplier does not pay GST
3 Three types of GST ,ie. IGST,CGST and SGST.
I fee that fuel/liker/real state should be taken under GST sot the people get more benefit.
If education,transport and health facility totally provided by the government free,then the Gst method is appropriate other wise not.
Please keep the petrol, diesel under GST automatically all prices will be come down. In addition to this Reduce the GST percentage on real estate from 18 to 5 and reduce all free principles for poor, b’coz those are not reaching the poor people. In addition to this digitalised the lands thereby Bhinami lands will be released And Aadhaar & Pan link to all money/purchase transactions. Use indian products only.
Please explain about seed for sowing, it was any kind of seed like hybrids, notified, and certified seed have any gst.
What is the rational behind 5 per cent for Cashew and 12 per cent for Almonds
Because Cashews are grown in India. Almonds are imported.
It is very clear we should pay in MRP. Nobody asked for extra payment.
Sir
Even i was of same opinion before but when i went to by electri appliances , i have seen many discrepancies, if the MRP was 120 Rs electricians say the selling price is 400Rs. The reseason explained by many shopkeepers was that – this product is imported from China & we need pay import duties & taxes. I was shoked that it was no only practiced by small shop owners even reputed electrical shops do the same.
Some strict action should be taken against such shop owners, as they are trying to same tax because of low MRP printed on the product. And Chinese items should be withdrawed thro entire Indian market. As we cant Ban them directly because of Trade Agreements between all countries but many low quality products can withdrawed by not matching Indian Quality Standards & harm to citizens of Indian
This is very true.
GST will slowly kill the poor and moddle class people
Very good i am glade
Traders involved in exports are to Shell out 28% GST initially and then recover it from Govt after due documentation which will take time. When the profit margin itself is about 5,% who can afford to block 28 % ??? And our Govt wants foreign exchange earning to improve!!!
Very true. Exporter will face tough time.
I am sure exports will drop.
28% IGST on inward purchase and then refund,it is really a problem un-necessary extra work and blockage of funds.
I don’t thing that a common man will get much benefit through GST soon, infact the government have set-up rate slab little bit higher and also increase service tax to be recover if any financial lost, It seams state gov and central gov decided GST rate jointly in there own benefits which I think need to revise.
But GST has a good features through which all “in-direct tax amount” will taxed timely, distribution of tax amount, trash tax defaulters, totally computerise online-offline IT system to control taxation which help gov to collect more money in easier way rather then earlier.
Hoping on long term common men will have benefited good ratio comparatively to the government.
gst अच्छा है पर जब से gst लागू हो रखा है 2 नो काम जयदा esay हो गया है क्यूँ कि लोगों अब खुला २ नो का काम कर रहे है अब तो दुकानदार बड़े आराम से बोलता है भाई gst के बिना इतना ओर gst लगा के थोड़ा ओर कर लांग टैक्स आधा २ कर लेंगे तो जब से gst हवा है तब से लोगों ने भौथ जयदा दो नो के काम स्टार्ट कर दीया है कुछ नहि हो सकता है इस देश का कुछ नहि हो सकता है gst हो चाहिए कोई ओर हिंदुस्तान जब तक क़ानून एक स्ट्रोंग क़ानून नही होगा कुछ नही हो सकता है सो gst हो चाहे कुछ ओर जब तक देश में नोकरशाही में सुधार नही होगा तब तक कुछ नही होगा
बाक़ी सारे अंग्रेज़ बन जाते है आज कल हिंदुस्तान का खाते है ओर इंग्लिश में बात करते है दो अक्षर इंग्लिश क्या सिख लीया हिन्दी को लिखने में शर्म करते है जब हम हिंदुस्तान में है तो इंग्लिश में सब से पहले वेन लगना चाहिए कि सभी हिन्दी का ही उपयोग करे
क्या कभी किसी अंग्रेज़ को हिन्दी में बात करते देखा है क्यूँ कि वो अपने भाषा का समान करते है है अगर करते है भी तो हिंदी को मज़ाक़ में ले जेसे बात करते है सो सभी अंग्रेज़ भाई से बिनती है अगर हिंदुस्तान का समान नहि कर सकते तो अपमान तो मत करो हिंदी हमारी मूल भाषा है हम लोगों को हिन्दी को काफ़ी जायदा इस को यूज़ करना चाहिए
जय भारत माता की
जय जवान जय किसान
Very useful and to the point information.
Tel me What is the gst tax rate for distilled water which use for battery.
Thanks for the information. GST on cars will replace excise+ vat. So impact must be clarified.Its not clear from the article what’s the real impact on ‘on road’ prices of cars.
I am istre
GST should not have classified under URD below 20lacs turnover and threshold of INR 5000/day to RD will lead lot of manipulation. At least BPL category GST should not charge more than 5%.
Govt now look into more on public benifit medical etc
Kindly send points to be reconsidered
1 Reverse charge GST
2 Responsibility of the buyer if supplier does not pay GST
3 Three types of GST ,ie. IGST,CGST and SGST.
Kindly send the gst book with example.
Regards
Praveen
All essensial and life saving medicines should have been kept outside any tax bracket to provide relief to sick and disabled people. We
Keen to see kind gesture from govt in this vital area of our un-avoidable happenings.
I am 100 % proud of as a indian and I am agree for government step for GST
Moving forward we might see even IGST ( International GST) & later UGST ( Universe GST) added – Big impact to middle class , more over i see that even small restaurants Santhi Sagar , Udupi mess are charging GST for a masala dosa . Eg : If we had masala dosa in vilage/small town we pay him 30rs for dosa and we end up paying 12% GST for non AC – do you think this is correct move. even i see for water bottles they are charging GST on MRP adding up in the bill
GST implemented in true sense is good for for business class as well for domestic consumers specialy the business class taking contracts out side the state of their H.O..
Why are you colect GST tax how are you show plssss explain it
Medical & Education should be declared FREE for all. This is the demand of everyone.Only then imposition of any tax structure be made.If there is no releif to common people No Tax Changes.
GST is good, but Govt must correct misgivings of implementation.
GST is good for Indian Society, but Government MUST ensure hassle-free implementation without affecting common man
GST has been construed as one of the biggest economic reforms of post independence era.
Honestly,I don’t have the required capabilities to comment on this.
As a common man ,I would like to see my Country to have Free & Competent Education System, A free & good Health Care System and A free & Good Sports infrastructure . Abundant Money in these fields have created mass level corruption in all the three fields.
These three things should be the fundamental rights and privileges of any citizen of any nation.
Agriculture should be given utmost priority . It is the backbone on which our Nation survives.
The nation is moving towards a collective suicide by neglecting this Sector.
Population Control & it’s measure is the basic pre-requisite of any Economic reforms;Budgeting without this will be at best a poor computation.
Zero tolerance towards Corruption and generation of sustainable environment for employment creation based on our own system of division of labour.
Democratic Institutions have to become truely democratic.
Then Perhaps GST
GST is not good for common people or small businesses because there is a lots of expenses generate in the name of GST by the TAX department of India. So how to control the Tax expenses if the business was not run in good condition?
I am Credit Card user.During the month UTILITY BILLS are paid by Credit Card.At the month end Credit Card Bill I have
paid from my saving Account.So how GST apply in my case.
gst is good for government not for people
Kindly send points to be reconsidered
1 Reverse charge GST
2 Responsibility of the buyer if supplier does not pay GST
3 Three types of GST ,ie. IGST,CGST and SGST.
Kindly send the gst book with example.
Regards
Nikhil Pal
In the name and guise of GST common man will be looted.
Export of jute goods
As a traders and manufacturer exporter
A) Now I am buying from the manufacturers against 2.5% CGST and 2.5% SGST
When I am exporting it I have to pay 5% IGST
Now, I will get credit these all.
But I will not get 5% Drawback.
Whereas, previously
When I bought jute goods from manufacturers for export ,I did not pay any tax. Only I have to give form 12A.
I was getting 5% drawback.
These effects export market of jute goods.
Price of jute goods in export market will be increased. And it will not be competitive market rather than our competitor country Bangladesh.
Kindly explain
Jute goods manufacturers and exporters
Buying jute yarn and jute goods against CGST 2.5%, SGST 2.5%.
When exporting paying 5% IGST.
it is crediting. But on the other hand I am not getting 5% Drawback. If I will get back these amount after a few days , but these huge amount incurred interest.
Whereas previously (vat system)
I DID NOT PAY ANY VAT FOR EXPORT AGAINST FORM H OR 12A. WAS GETTING
5% DRAWBACK.
Now, is it not effect export market of jute ?
Gst is good for country but little high tax like 28 % , if we compare with anyother country highest gst is 18% . Extra 10% garibo mai daan karne ke liyea hai . No need to worry gst sabko lag raha hai and gst pay karne wale end user hai so dont think much and enjoy gst.
GST is good but it should be properly implemented . Now, many household goods where price should come down priced more or same as earlier.
Very wise of the team of experts to have come out with GST but my point is what good are you thinking for senior citizens who normally ail with various deaseses . You are requested to please exempt the life saving medicines from taxes and help them to live the rest of there life in peace not in pieces
GST is the biggest economic reform in the country but so many slabs &exemptions defeat the very purpose of one tax one nation.Still a good beginning claim of many items becoming cheaper is far from ground reality I have not come across any such product In fact prices have gone up
Dear Sirs,
Very well explained. No doubt introduction of GST is one of boldest steps by the Govt. to bring in faster developments. There may be initiating troubles, but we know nothing good comes without sacrifice.
My complaint is against raising the GST rates for daily use medicines for a diabetic & similar patients, these should be brought down to 12% level, this will help to distribute the benefits of easier access to treatment.
Please place the same urge to the proper level for consideration.
Thanks.
Does the rental income attract GST and if the tenant refuses to pay that part what should one do.Please enlighten.
GST ultimately slowly kill middle and lower class people.
If a whole seller transports Raw Dal or any food product from one state to another eg. Delhi to Mumbai, reaches a restaurant, finally cooked & served in restaurants, please explain the tax element,how many times one pays the GST visa vis earlier CST & ST.
Most of the 28% tax are not paid instead if 28% slab is removed and 18% is kept you will get more revenue
This all meeting r only for assurances thers is nothing going to be implement reducing 1% to 2% is only for keep clam for barking dogs. Why finance ministr not taking final step why they confuse nd participte in meeting in every mnth on the topic of gst..
GST is good, so that different different taxes will be clubbed into one. But the problem lyes in the implementation. So many slabs and so much of documentation in the form of returns and different different due dates for filing the forms, which a small trader cannot afford. Also, there is no proper governance of the GST. So many traders are looting the common people in the name of GST. Some are collecting GST above the MRP which is totally fraud. And also, the rates differ for the same commodity, for eg. a/c hotels and non a/c hotels, packaged and unpackaged, etc. etc. These steps should be corrected and also the rates should be rationalized, like only one or two GST slabs. Initially, each n every one is suffering because of GST at the moment. Hope, it will be rectified in the course of time. Also, the main thing is that Petroleum products are also should be brought under GST, so that the prices of each n everything will come down.
absolutely Right
Sir/madom insurance premium on health and vehicles drastically increased, Kindly see to that insurance company’s are not exploiting in shadow of the new rules, if not give the explanation thanks.