Certain items are on the speculations of becoming cheap once the goods and service tax rolls out as an easy and hassle free implementation of the GST is expected to make inflation not hitting hard on the general consumers. Currently, the GST council has finalized certain draft rules concerning tax refund, registration, invoice debit and credit, the framework on input-tax credit, valuation, transitional provisions and composition which will be ascertained in the next GST council meet on May 18.
At CII annual conference, finance minister Arun Jaitley cleared that there will be no further surprise in the matter of tax rates and will be kept as low as possible and also requested the companies to pass on the benefits to the consumers. He said that “We are now in final stages of fixing tariffs for different commodities. The formula under which it is being done has also been explained and therefore nobody is going to be taken by surprise, it’s not going to be very significantly different (from the present).”
There are currently few items and services which are speculated to be cheaper after the GST rolls out:
Cars – It is expected that after the GST roll out, there will be lower production cost incurred on all categories of the cars which will eventually drop the price of it.
Batteries – The batteries currently attracts a compound tax of around 40 to 45 percent which is expected to go down after the unified tax rate comes into implementation.
Cabs – The interstate travel is expected to become cheap after the goods and service tax comes into being.
Electronic Products – Fans, lighting, water heaters, air coolers, geysers etc. are the products which are expected to become cheap once after the GST is implemented.
Mobile Phones – The VAT applied currently on the smartphones will be abolished making the smartphones go cheap while also making an equal price in all the states.
Construction Material – Paint and cement are expected to become cheap after the GST which in turn will give a good hike to the construction industry.
Packaged Foods – Packaged and processed food is ought to become cheaper after the GST as the food items are likely to be under the lower rate of tax.
Transportation – The logistics and transportation will be cheaper after the GST as the abolishment of VAT will be making a lesser output on the cost and also the interstate duties will also get subsumed.
