Prices of TV and AC to Hike, Smartphones to be Cheaper under GST

By Registrationwala

29th May 2017

 

GST roll out expected to increase the rates of Aerated Drinks and durables like TV, AC, Washing Machines and Refrigerator. But, GST will also lower down prices of Smart-phones, Small and other household daily using products.

GST council has analysed for over 1200 goods and 500 services like soap and toothpaste will have lesser cost while fresh fruits, vegetables, pulses, bread and fresh milk will continue to be exempt from any tax.

People have to pay less for Economy-class air travel and hiring on taxis will also get cheaper. Since, the GST rate has been put 5 percent whereas in current regime it is 6 percent as service tax.

Foods products like Food grains may also become cheaper as they have been put in the zero-rated commodities' list. In some states grains have purchase tax of 2 to 5 per cent therefore; things will be abolished under GST.   

On a whole GST council tax prepared a Tax slab of per cent, 12 per cent, 18 per cent and 28 per cent.  Commodities like processed food, confectionery items and ice creams would be brought down to 18 percent which is now 22 percent.   

 Personal care items like perfumes, shampoo, and make-up items would cost more as the tax rate will go up to 28 per cent, from the existing 22 per cent.

Products like fresh fruits, vegetables, pulses, bread and milk are exempt from taxes and the same holds true for services like health and education.

Under-construction property would be subject to 12 per cent GST rate, as against the present incidence of 15 per cent service tax. Whereas Real estate sector has been kept aside

Two -Wheeler Motor-Vehicles could also see some reduction in prices as the levy will come down by a percentage point to 28 per cent.

There will be decline rates due to GST rate of electrically-operated two- or three-wheelers will also decline from 14 per cent to 12 per cent. There could be steep in hike of tax rates from to 18 per cent from the present no tax to 5 per cent. Solar panels could have the incidence on soaps and toothpaste under the GST regime would also come down to 18 per cent from the existing 25-26 per cent.

It can be seen that cost of cement will be more eased and the tax rate will come down to 28 per cent from the existing 31 per cent. Medicines will also be , included and other form of drugs  like Ayurvedic drugs, as also medical devices will face a lower incidence at 12 per cent, compared to the existing 13 per cent.

Pooja items such as havan samagri, bindi, kum kum have been kept in the exempt category.

Taxation on entertainment products such as Cable and DTH (Direct-to-Home) services shall also come down as the entertainment tax levied by states has been subsumed in the GST and the effective levy has been kept at 18 per cent.

In the present scenario service attract entertainment tax in states in the range of 10-30 per cent over and above the service tax levy of 15 per cent. GST rate will increase rate of Five star hotels while rate on  non-AC restaurants may fall marginally.

Currently, non-AC restaurants are subject to state VAT in the range of 12.5 per cent to 20 per cent, while AC restaurants are levied 6 per cent service tax on top of the state VAT.

After GST implementation restaurants not having AC and liquor licence will attract 12 per cent levy and having AC or liquor licence, the tax would be 18 per cent. Five star restaurant and above will have 28 percent as GST rate.



 

 

 

Prices of TV and AC to Hike, Smartphones to be Cheaper under GST

2017-05-29