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GST Impact Household Budget

Goods and services tax (GST) comes into effect from 1 July. ET Wealth analyses the impact on some basic expenses in the household consumption basket. 

AUTOMOBILES 
The price difference will be bigger for SUVs (55% to 43%) compared to small cars (30% to 29%). 

Base price : Rs 4.75 lakh 

Total taxes now* : Rs 1.43 lakh 

Under GST : Rs 1.38 lakh 

DURABLES : Refrigerators and washing machines 
For most white goods, there won't be much difference in price as new rates will be close to earlier ones. 

Base price : Rs 20,000 

Total taxes now* : Rs 5,300 

Under GST : Rs 5,600 

LIFE INSURANCE 
While premium of term plans and non-life policies are taxed, only charges (mortality and AMC charges, etc) in other life policies attract GST. 

Base price : Rs 15,000 

Total taxes now* : Rs 2,250 

Under GST : Rs 2,700 

GOLD ORNAMENTS : Making charges Rs 10,000 
The yellow metal will become dearer as there will be 3% GST on gold and 5% on making charges. 

Base price : Rs 60,000 

Total taxes now* : Rs 1,800 

Under GST : Rs 2,000 

HOTEL STAY 
If you settle for a room that costs less than Rs 1,000, there will be .. 

Base price : Rs 7,000 

Total taxes now* : Rs 1,400 

Under GST : Rs 1,960 

AIR TRAVEL : Economy 
Taxation gap between economy and business class has increased with GST. 

Base price : Rs 5,000 

Total taxes now* : Rs 300 

Under GST : Rs 250 

TRAIN TRAVEL : AC coaches 
While those travelling by local trains or in sleeper class are not affected, first-class and AC compartment travellers will pay more. 

Base price : Rs 3,000 

Total taxes now* : Rs 131 


These are exempt from GST 

* All unprocessed cereals like rice, wheat, etc. 

* All unprocessed milk, vegetables, meat, fish, etc 

* Train travel by local and sleeper class 

* Education 

* Healthcare (but not medicines) 

* Hotels, lodges with room rent less than Rs 1,000 


Source : Economic Times 

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