The impact of goods and services tax on the daily household is positive according to the reports and research did in the one year of this crucial time period i.e. the implementation of GST.
In the overall scenario, the household goods have become affordable, while on the other side, the household services are now pricier than before. After researching the complete household categories, let us make some conclusion.
GST Impact on Food Products: According to the findings, the foods items are now 1 per cent cheaper than pre-GST era, as the GST rates are now 5 per cent from the earlier 6 per cent. Also one can notice the reduced rate on chocolates as the earlier rates of 26 per cent are now down at 18 per cent.
GST Impact on Cosmetics: All the cosmetic items including toothpaste, soap, oil and shampoo are now taxed at a lower 18 per cent rate instead of earlier charged 26 per cent. Apart from it, the medicines are still in the same tax bracket i.e. 12 per cent.
GST Impact on Consumer Durable Items: The GST rate on consumer durable goods are increased at 2 per cent and now retailing at 28 per cent. But the turning point is that the companies are now getting higher input tax credit which makes the overall tax scenario lesser than the previous one.
GST Impact on Services
Restaurant Services Under GST – In the starting phase of GST, the restaurants were put down in the 18 per cent slab rate after which a nationwide protest made it in the lower 5 per cent slab. Earlier there was a 6 per cent tax rate applicable which is now 1 per cent less than what was originally charged in the pre-GST era.
Telecom services under GST – After the inclusion of 18 per cent GST on telecom services, it went higher on the pockets of consumers as the earlier rate was 15 per cent.
Airline services under GST – The overall impact of GST on airline tickets is positive and cheaper as the economy class is now taxed at 5 per cent. Byt the business class is taxed at 12 per cent, however, due to increased availability of input tax credit, the impact is lesser than predicted.
Real estate under GST – The real estate services and transaction now taxed at 12 per cent from earlier 18 per cent. While the tax rates may have increased on the one-third basis but the input tax credit availability helps a lot.
Financial services under GST – The financial services like banking transactions, insurance, etc. are gone up by 3 per cent which makes the financial services expensive than before.
