Proposed GST Rate Changes by Central Government: Impact on Economy and Common Man Explained !
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According to the latest reports, the Central Government has proposed changes to the GST (Goods and Services Tax) rates, which could have a significant impact on the country's economy and the common man's pocket. Let’s understand this in simple terms.
Items Likely to Become Cheaper Due
to GST Reduction from 12% to 5%
If the Goods and Services Tax (GST) is reduced from 12% to
5%, many everyday-use items could become cheaper. These include:
Processed and Packaged Food Items:
- Butter,
ghee, paneer
- Fruit
juices, coconut water
- Pickles,
murabba (preserved fruits), chutney, jam, jelly
- Tomato
sauce and other sauces (excluding mayonnaise and salad dressing)
- Namkeen
(savory snacks), canned food
- Frozen
meat, confectionery items
- Dry
fruits like cashews, almonds, dates
Household and Personal Use Items:
- Umbrellas,
sewing machines
- Cooking
utensils like spoons, forks, tongs, ladles, cake servers, fish knives
- Footwear
priced below Rs. 1,000
- Clothes
priced below Rs. 1,000
- Handbags,
shopping bags made from jute or cotton
- Decorative
framed mirrors
- Containers
like purses, pouches, jewelry boxes
- Wooden
or cane furniture
- Bicycles,
matchboxes, flint buttons
- Spectacles
and glasses (vision correction)
- Plastic
garlands, playing cards, chess boards, carrom boards
Industrial Products:
- Diagnostic
kits, marble and granite
- Fixed-speed
diesel engines
- Walkie-talkies
or two-way radios
- Practice
books and notebooks
- Tanks
and other armored combat vehicles
- Drinking
water packed in 20-liter bottles
- Condensed
milk
Services:
- Hotel
room rent between Rs. 1,000 and Rs.7,500 per night
- Air
travel in non-economy class may become cheaper
- Transport
of goods in containers (other than railways)
- Eating
out at restaurants may become more affordable
Items Likely to Become Cheaper Due
to GST Reduction from 28% to 18%
In India, the 28% GST slab is the highest and is mainly
applied to luxury and harmful products. If it is reduced to 18%, the following
items could become cheaper:
Beverages:
- Carbonated
drinks, energy drinks, cold beverages
Clothing & Footwear:
- Shoes
priced above Rs. 1,000
- Clothes
priced above Rs. 1,000
Home Appliances & Electronics:
- Ceramic
tiles, marble and granite
- Air
conditioners, refrigerators, dishwashers
- Washing
machines, vacuum cleaners
- Shaving
cream, aftershave, deodorants, perfumes
- Beauty
products, hair dryers, curling irons
- Sunscreens
and tanning products
- Televisions
above 65 inches, home theater systems
- Digital
cameras, video game consoles
- Firecrackers,
paints, varnishes
- Wall
and floor tiles
- Some
plastic and rubber products
- Artificial
flowers and leaves
- Premium
stationery like high-end pens
Luxury & Entertainment Services:
- Hotel
rooms costing above Rs. 7,500 per night
- 5-star
hotels and resort services
- Movie
tickets costing more than ₹100
- Theme
parks, water parks, joy rides
- Casinos,
betting, gambling, horse racing
- Circuses,
dramas, certain cultural events
- Private
charter flights
- Some
luxury travel services
- Racing
cars and other racing-related activities
Items Likely to Become Expensive Due
to 40% GST Proposal
The central government has proposed a 40% GST rate on
certain luxury and harmful products. This could make the following items more
expensive:
High-End Automobiles:
- Expensive
luxury cars and motorbikes, especially high-end models
Luxury Apparel & Accessories:
- Branded
designer clothes and handbags
- Shoes
priced above Rs. 0,000
Premium
Electronics:
- Expensive
smart phones, laptops, and other high-end gadgets
Jewelry:
- Designer
and luxury jewelry
Harmful Products:
- Tobacco,
pan masala, cigarettes, and other harmful items
Luxury Watches & Alcohol:
- Watches
priced above Rs. 25,000
- Alcohol
(already under high GST) could become even more expensive under the 40%
GST rate
