Products Going to Costlier After GST: The key GST Council conference will see the declares selling for their recommended rates on select goods. The country’s landmark tax change GST is set to rollout on 1st July After the execution of the Products and Solutions Tax regime, customers expect most goods to become cheaper, but there are quite a few good & services that will become costlier.
Here’s what could get cheaper and costlier after the execution of GST in July
- The good news is 50% of the necessary food items like rice, wheat and medicines will be excused from any tax under the new tax rule. Generally used items like spices, tea, and mustard oil will be taxed at 5%.
- Movie ticket costs may come down due to reduced entertainment tax.
- Electronics goods like water heater, air cooler, Fan, lighting etc. could get cheaper
- Hotel and dining places may become dearer.
- Phone calls rates may get expensive as service tax will go up.
- Train Tickets, Airfare become costlier due to increase in service tax
- Banking charges, Insurance premiums, the internet, wifi and DTH services are likely to get expensive. GST may also make school fees and courier services expensive.
- All luxury goods, drinks, and tobacco products are expected to be taxed at 28 percent. However, with 12 or 18% tax, services are expected to get more costly
- Two-wheelers, Entry level cars, cement, paint, consumer durables are expected to get cheaper after GST rollout in July.
Watch this video to know cheaper and costlier products from 1st July 2017