Infographic: Here’s how GST will change your household budget
- What you need to know is how the roll out of GST is going to implement your lives and how much you will be paying for which commodity
- Reports say the proposed rates are to the tune of: 5%,12%, 18%, 28%
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For a long time now you have heard the words GST being thrown at you and it has been hailed or rather circulated as the bringing the country under one tax regime meaning – one commodity will have one single tax in any part of the country.
In recent developments, the Lok Sabha had cleared four bills to aid the July 1 roll out of the Goods and Services Tax:
- Integrated GST
- Central GST
- Union Territory GST, and
- Compensation Bill
This will allow states to enact laws and implement the new tax regime from July. The tax rates applicable on products and services are expected to be announced by the government by the end of this month.
What you need to know is how the roll out of GST is going to implement your lives and how much you will be paying for which commodity. While the rates have not been revealed by the government as yet, here is an infographic that will help you understand better
*The information here is tentative and is subject to change depending on the state taxes and other rates
The basic understanding is that how it affects each one of us depends on the income of each household. Reports say the proposed rates are to the tune of: 5%,12%, 18%, 28%.
You may be getting these items like electronic goods, construction material, pharma products etc.cheaper because already in the case of manufactured consumer goods, a customer pays VAT and Excise Duty much more than the actual cost of production but if a flat rate of 18 per cent is brought by GST then we may see ourselves paying lesser for them.
The impact most likely will be felt by the changes in the rates of the amount you will end up paying as phone bills, insurance premium charges, banking charges despite digital India push, etc. The pinch will be felt when rates of residential rent, courier charges (online shopping) school fees, commuting etc will be increased. Any family’s budget will in some way be impacted by the rise – education is not becoming cheap and nor is commuting – most of the budget is spent here only.
