Price changes after GST implementation

After the implementation of GST on 1st July 2017 lots of consumer and industrial goods price has fluctuated due to previously allotted different taxes on such products.

GST by the name as Goods and Services Tax has been started on 1st July 2017. So, it’s now a couple of months have passed since the GST has levied on us. But most people do not understand the effect of GST on certain prices. The main criteria for GST are to improve the tax structure in India by creating one single tax collecting method.

Benefits of GST levying

There are lots of benefits after the start-up of GST tax systems.

• After the GST levying, lots of double taxation system has been abolished. So, prices of different goods have fallen.
• Due to the increased collection of taxes under the GST regime, the government can allocate good amount money for the welfare of the people living below poverty line.
• GST has made an exemption by forgiving taxes for the businesses that have turnovers up to 20 lakhs. 
• As the entire process in online, very less amount of paperwork will be involved. So, people won’t need to go to tax offices anymore for different registration processes.

Products that get cheaper after the GST implementation

• Products like body soaps, hair oils, toothpaste will become cheaper.
• The rate of airfares is going to decrease after levying GST. Price of the tickets will reduce as much as 5%.
• Tickets for movies that cost less than 100 rupees will get even cheaper.
• Price of going to non-luxury hotels will fall.
• Many two-wheeler automobile prices whose engine is below the 350cc size, will get cheaper. Price of many commercial vehicles such as three-wheelers and SUV’s will also decrease. But the tax will vary in each segment.
• Having your favourite food in small restaurants will now cost less after GST levying. Small restaurants have been kept under the 5% tax segment as per new GST tax rates.
• Lots of household items including pressure cookers and pans will get cheaper after the GST implementation. The tax rate will fall to 12 percent directly from the previous 19.5 percent rate.

Products whose cost will increase

• Many personal care products such as body oil, shampoos price will increase.
• Building constructional materials such as concrete, sand, TMT bars price will increase after GST levying.
• Lots of household items such as tv’s, air-conditioner, refrigerator and washing machine price will get very high, after the GST implementation on such items, the tax rate will go up to 28 percent.
• Services which includes courier, mobile charges, insurance premiums, various banking charges and broadband charges will increase up to 18 percent.
• The price in staying luxury hotels will increase as high as 28 percent from the previous tax structure. Luxury hotels pricing more than 7500 per room per night stay will become costlier.
• Prices of tobacco and aerated drinks will increase after the GST implementation.