Reflection on proposed GST: list of items with higher and lower prices after GST
Posted on: 21/Oct/2016 2:23:50 PM
GST (Goods and Services Tax) is proposed to be implemented in a 4-tier format.This may lead to an increase in prices of several items which will be an additional burden on the common man already suffering from high prices and increasing cost of living.
For instance, after implementation of GST, there are prospects of the prices of items like cooking oil, pepper, clove, cardamom, and chicken meat.
At the same time, there are prospects of a reduction in the prices of televisions, refrigerators, and washing machines.
The central government is set to introduce the new Goods and Services Tax eliminating the indirect taxes which are in vogue presently. In discussions with the state governments, the central government has proposed 4-tiered GST.
With this, the taxes on items like coconut oil and chicken meat which is currently 4 percent may go up to 6 percent.
Similarly, the prices of refined oil, mustard oil, and groundnut oil, is likely to an increase from the present 3 percent to 6 percent.The tax on coriander seeds, black pepper, and oil seed may go up to 5 percent.
The tax on items like televisions, refrigerators, washing machines, invertors, electric fans and some of the cookery items may be reduced from the present 29 percent to 26 percent.
The tax on items like perfumes, shaving cream, face talcum powder, hair oil, shampoo, and soap may also go down from 29 percent to 26 percent.
The tax on items like gas stoves, gas burners, mosquito repellents, and insecticides may go up to 26 percent.
In the proposed 4-tiered GST, the items which are currently taxed between 3-9 percent will come under a tax of 6 percent. The items which are presently under the tax bracket of 9-15 percent will come under 12 percent tax.
The tax on the items which is in the tax bracket 15-21 percent will go to the maximum tax of 25 percent.
A special team of the central finance minister and state finance ministers will decide on the GST ratio next month.
The central Finance Minister, Arun Jaitley, has informed that the proposed GST has been designed not to affect the revenue of the traders and at the same time not to increase the tax burden on the public.
Items with a rise in prices
- Chicken meat
- Cooking oil
- Clove
- Refined oil
- Mustard oil
- Groundnut oil
- Coconut oil
- Pepper
- Cardamom
- Turmeric
- Cumin
- Coriander
- Black pepper
- Oilseeds
- Gas stove
- Gas burners
- Mosquito repellants and insecticides
Items with lower prices
- Television
- Air-conditioners
- Refrigerators
- Cookery items
- Electric fans
- Washing machines
- Invertors
- Perfumes
- Shampoo
- Hair oil
- Shaving cream
- Facial Talcum Powder
