How GST will impact the kitchen expenses of Indian middle class
The government is all set to roll out the Goods and services Tax or GST from July 1. The new tax rates applied on daily-use household items could bring down Indian middle-class' monthly bill once the GST is in force.
After July 1, the prices of the essential foods such as milk powder, curd, butter milk, unbranded natural honey, dairy spreads, cheese, spices, tea, wheat, rice, flour, and spices will come down as these products are placed in the lower tax bracket. The present tax rates on these products levied by the centre and states are higher than the GST rates.
The Finance Ministry earlier in the week released a list of supplies wherein GST incidence will be lower than the current taxes. It lowered the taxes on groundnut oil, palm oil, sunflower oil, coconut oil, mustard oil, sugar, palmyra jaggery, sugar confectionery, pasta, spaghetti, macaroni, noodles, fruit and vegetable items, several food products, pickle, murabba, chutney, sweetmeats, ketchup and sauces.
Apart from this there are other household products that would be cheaper under the new tax regime. The list includes cement, coal, kerosene PDS, LPG domestic, insulin, agarbatti, tooth powder, hair oil, toothpaste, kajal, soap, X-ray films for medical use and diagnostic kits and reagents.
Not only food items but various other items will be less costlier after the new rates are implemented. These products are plastic tarpaulin, school bag, exercise books and note books, kites, children's picture, drawing or colouring books, silk and woollen fabrics, certain types of cotton fabrics and specific readymade garments, along with footwear of Rs 500, and helmet.
The GST Council, comprising state finance ministers and headed by Union Finance Minister, had decided on the GST rates on all goods and services during May and June. The Council is scheduled to meet on June 18 to finalise e-way rules and anti-profiteering norms.