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
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
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
* 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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