By Maruti Suzuki,Sonali Sharma
Copyright dnaindia
New GST rates take effect from today, 22 September, in a move that PM Modi says will help Indians save nearly Rs 2.5 lakh crore, along with earlier income tax changes.
Speaking to the nation on Sunday, the Prime Minister said, “From tomorrow, next-gen GST reforms will come into effect. GST Bachat Utsav will begin, boosting savings for households, shopkeepers, farmers and businesses, while driving India’s growth.”
Under the new system, luxury and harmful products will become costlier, while essential and mass-use goods will get cheaper.
This means families could save money on groceries, dairy products and household appliances, while items such as premium alcohol, cigarettes and large motorcycles will now cost more.
India’s largest dairy brand, Amul, has cut prices on more than 400 products, including chocolates, snacks, frozen items, butter, ghee and paneer. In Madhya Pradesh, the popular sachi ghee brand will be over Rs 40 cheaper. In Karnataka, the state-owned Nandini brand has reduced prices of cheese, butter, ghee and other milk products.
Other essentials such as soaps, packaged flour and edible oils will also see price drops under the revised GST slabs.
Electronics and Household
Another significant beneficiary is electronics and household goods. In certain instances, the cost of air conditioners and dishwashers has decreased by between Rs. 4,500 and Rs. 8,000. Previously subject to higher GST rates, televisions, computer monitors, and projectors will now only be subject to a lower 18% GST.
Cars and Bikes
There will also be price reductions for cellphones and entry-level freezers under Rs. 25,000. The timing is ideal for families who are making seasonal purchases.
Automobiles are arguably the biggest headline-grabbing topic. Price reductions of up to Rs. 1.2 lakh have been made by Maruti Suzuki for a number of models, including the Alto, Swift, Brezza, and Baleno.
School and Healthcare
Children’s need and education also gain from this. Along with health and life insurance premiums, exercise books, pencils, erasers, and notebooks are now tax-free under the 0% GST category. Even though these might seem like little savings, they pile up for middle-class households.
Additionally, a number of commodities, such as health and life insurance premiums, are no longer subject to GST.
Items that have gotten costlier
However, while necessities become more affordable, luxury and sinful goods will become more expensive. The sharp 40% GST rate has been applied on cigarettes, pan masala, gutkha, and chewing tobacco.
Soft drinks with added sugar and aerated beverages are also subject to increased taxes. The huge bikes, like the 650cc series or Royal Enfield’s Himalayan, are heavier and more expensive for car fans.
The new “demerit” categorization is anticipated to result in higher prices for luxury automobiles and SUVs, especially those that are imported. Imported watches and high-end liquor are also subject to hefty taxes.
