NEW DELHI: Price of Soft drinks and other consumer durables like TV, AC, washing machines and refrigerators will increase. While smartphones, small cars and daily use items will get cheaper due to tax scheme under GST.
An analysis of the tax rates will be decided by the GST Council for more than 1,200 goods and 500 services. They even revealed that the price of daily use products like soap and toothpaste will decrease from 25 or 26% to 18%.
While the price of fresh vegetables, fruits, fresh milk, pulses and bread will continue to be completely exempt from any tax. Similar will be the case with the services like health and education.
The air travel for Economy-class will become slightly cheaper and so the hiring of taxi as tax on such travel have been dropped down to 5% in the Goods and Service Tax (GST) Bill regime from the current service tax of 6%.
It is even believed that food grains may even become cheaper. As now they have put all such commodities in zero-rated commodities list. Some states levy purchase tax of 2-5% on food grains which will be now abolished under GST.
Earlier the GST Council had put over 1,200 goods and 500 services in four different tax slabs of 5%, 12%, 18% and 28%.
The tax on certain commodities such as processed food, ice-cream and confectionery items would be dropped down from 22% to 18%. While the personal care products such as shampoo, perfumes and make-up items will be charged more as the tax rate rose up from 22% to 28% due to Tax scheme under GST.
Even though the real estate sector has not been kept under GST. But still the under-construction property would be subject to 12% GST rate which is 15% service tax.
The taxi aggregates will even observe marginal reduction in the tax rates. Since the effective rate will comes down to 5% from 6%. Marginal fall can be seen in the price of Motorcycles it will come down to 28%.
Furthermore all the electrically operated 2/3 wheeler vehicles will even see drop in taxes from 14% to 12%. While Solar panels will hike in tax rates from 0-5% to 18% in future.
Cost of packaged cement is expected to come down from 31% to 28%. Medicines comprising of ayurvedic drugs, medical devices will fall down to 12% from 13%.
Prices of Smartphones will also come down as the current tax imposed is about 13.5% which will fall down to 12%.
However the puja items,like havan samagri, bindi and kumkum have been kept in completely exempt category. Taxation on entertainment, cable and DTH services will also come down at 18%.
While under the GST regime, in 5 star restaurants their will be increase in tax, while in non-AC restaurants tax will come down marginally due to Tax scheme under GST.