The Goods and Services Tax (GST) Council's announcement of the 4-slab tax structure of GST on Thursday will impact the prices of most commodities in the market.
The government seems to have tried to ensure that essential commodities such as food grains do not see a price rise. Foodgrains like rice and wheat have been exempted with 0% tax rate on these products.
Soap, oil, toothpaste
The prices of soap, shampoo, oil, toothpaste and other consumer goods is likely to decrease with these products placed under the 18 % slab, which is lower than the current rate of Central and state taxes.
Cigarettes, tobacco products
Cigarettes and tobacco products are likely to see a price rise with the products placed under 28% tax slab but will be levied with additional cess.
Current effective rate of tax is 30 to 31% on television sets, smartphones, air conditioners and other similar products. The prices of these products are likely to drop with them coming under the 28% tax slab.
Staying in a hotel could become more expensive with the service tax likely to go up to 18% from 14%
Service tax rise could also mean a rise in the cost of air travel. Your flight tickets could become more expensive.
Similarly, insurance premiums could increase with the possible increase in the service tax.