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Look How GST Is Going To Effect Your Luxuries

Aerated drinks and consumer durables like TV, AC, washing machines and refrigerators will cost more, while smartphones, small cars and daily use items will turn cheaper when the GST is implemented from July.

An analysis of the tax rates decided by the all-powerful GST Council for over 1,200 goods and 500 services revealed that daily use items like soap and toothpaste will cost less while fresh fruits, vegetables, pulses, bread and fresh milk will continue to be exempt from any tax.

Economy-class air travel will be slightly cheaper and so will be hiring a taxi as tax on such travel has been brought down to 5 per cent in the Goods and Service Tax (GST) regime from the current service tax of 6 per cent.

Foodgrains may also become cheaper as they have been put in zero-rated commodities list. Currently, some states levy purchase tax of 2-5 per cent on foodgrains, which will be abolished under GST.

While the tax incidence on certain commodities like processed food, confectionery items and ice cream would be brought down to 18 per cent from 22 per cent, personal care items like shampoo, perfumes and make-up items would cost more as the tax rate will go up to 28 per cent, from the existing 22 per cent.

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