How the GST will affect your household budget

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The Goods and Services Tax (GST) takes effect July 1. ET Wealth analyzes the impact on certain basic expenditures of the household consumption basket.

AUTOMOBILES

The price difference will be greater for SUVs (55% to 43%) than for small cars (30% to 29%).

Base Price: Rs 4.75 lakh

Total taxes now*: Rs 1.43 lakh

Under GST: Rs 1.38 lakh

SUSTAINABLE : Refrigerators and washing machines

For most white goods, there won’t be much of a price difference as the new rates will be close to the previous ones.

Base Price: Rs 20,000

Total taxes now*: Rs 5,300

Under GST: Rs 5,600

LIFE INSURANCE



While premiums for term plans and non-life policies are taxed, only the charges (mortality and AMC charges, etc.) for other life policies are subject to GST.

Base price: Rs 15,000

Total taxes now*: Rs 2,250

Under GST: Rs 2,700

GOLD ORNAMENTS : Make charges Rs 10,000

The yellow metal will become more expensive because there will be 3% GST on gold and 5% on manufacturing costs.

Base price: Rs 60,000

Total taxes now*: Rs 1,800

Under GST: Rs 2,000

HOTEL STAY

If you settle for a room that costs less than Rs 1,000, there will be no GST to pay. Then it gradually rises. Anything above Rs 5,000 will attract 28%.

Base price: Rs 7,000

Total taxes now*: Rs 1,400

Under GST: Rs 1,960

REFINED COOKING OIL

Hair oil prices will remain high due to the 18% GST. But since coconut oil is a refined cooking oil, it will be taxed at 5%.

Base Price: Rs 200

Total taxes now*: Rs 23

Under GST: Rs 10

FLIGHT : Economy

The tax gap between economy class and business class has increased with the GST.

Base Price: Rs 5,000

Total taxes now*: Rs 300

Under GST: Rs 250

TRAIN JOURNEY : AC coaches

Although those traveling by local train or sleeper class will not be affected, first class and AC compartment travelers will pay more.

Base Price: Rs 3,000

Total taxes now*: Rs 131

Under GST: Rs 150

TELECOM : 2 phones + 1 DTH bill

Since these services won’t get much input credit, you’ll have to bear the burden of high rates.

Base Price: Rs 2,500

Total taxes now*: Rs 375

Under GST: Rs 450

EAT OUTSIDE : For a family of 4

A non-air-conditioned restaurant will only charge 12% GST. However, eating at a restaurant in a 5-star hotel means paying 28% GST.

Base Price: Rs 2,000

Total taxes now*: Rs 270

Under GST: Rs 360

CLOTHES : Ready to wear

Due to industry pressure, the GST on garments priced below Rs 1,000 has been reduced from 12% to 5%.

Base Price: Rs 2,000

Total taxes now*: Rs 130

Under GST: Rs 240

ENTERTAINMENT : Cinema for a family of 4

The reduction in GST for tickets up to Rs 100 will benefit single screen cinemas in smaller towns.

Base Price: Rs 1,200

Total taxes now*: Rs 360

Under GST: Rs 336

* This includes excise, sales tax, VAT, amusement tax, luxury tax, etc. Average tax considered.

These are exempt from GST

* All unprocessed grains such as rice, wheat, etc.

* All unprocessed milk, vegetables, meat, fish, etc.

*Train travel in local and sleeper class

* Education

* Health care (but not drugs)

* Hotels, lodges with room rent below Rs 1,000

* Coloring/drawing books for kids

* Bindis, sindoor, wristbands, etc.

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