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That You Ready Something Marlana Pilot
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The Goods & Services Tax (GST) council last week released the four-slab tax rates for good and services that is likely to be rolled out from July 1.

There are four slabs for the GST for both goods and services – 5 percent , 12 percent, 14 percent and 28 percent. There are also certain items that have been exempted from the tax base completely.

Tax slab for certain items like gold, precious stone and tobacco is yet to be decided.

GST is growth positive as it will reduce tax burden on the consumers. The economy is likely to fall by anything between 40 basis-150points, says an Axis Capital report.

Here is a look at what will become cheaper or costlier once GST is implemented:

No tax items: Daily items like milk, cereals, meat and curd have been exempted from the GST. Services like religious travels, Haj yatra, metro travel, education and healthcare will not be taxed.


Auto: Two-wheelers, large cars, white goods and SUVs are all expected to become cheaper.

Decoding: What does GST mean for you?

Branded goods: Under GST, branded goods will be taxed at 18 percent. Currently, these goods are taxed around 23-24 percent.

Hotels: Good news for travelers as tax on hotels has been at 18 percent. Only high-end hotels with Rs 5,000 plus tariff will attract 28 percent. Hotels with tariff below Rs 1,000 are exempted from GST. Currently, 22 percent is levied on hotels. Restaurants too will have 18 percent tax, a drop from almost 22 percent.

Entertainment: For most states, movie watching will become cheaper at a uniform 18 percent. In most states, tax on movies is near 22-25 percent. For states with low tax rate currently , this tax will be higher.

Personal care: Daily use products like soaps, hair oil and toothpaste is all set to become cheaper at 18 percent tax. They are currently taxed at 24-28 percent.

Air travel: For economy class, airfares are expected to shrink with a tax of 5 percent. Business class will attract 12 percent GST.

GST rates are here! How it will affect your restaurant bills

Telecom: Telecom services and excise is expected to get cheaper.

Processed food items: These will attract 5 percent tax under GST, a fall from the 15 percent currently.


Auto: Small cars will become slightly expensive as they now will fall under the 28 percent tax bracket.

Tea, coffee, masala – under GST – will be taxed at 5 percent. Currently, they are taxed at 3-4 percent.

GamblingCasinos: Those fond of gambling will now have to pay a higher tax of 28 percent.

Home appliances: Be prepared to shell out more for air conditioners, televisions and washing machines once GST is implemented.

FMCG: While soaps and toothpaste will be cheaper, other personal care products like shampoos and deodorants will be more expensive post GST.

Metals and construction: Metals, mining and cement will become costlier under the GST.

Sin items: Aerated drinks, tobacco, luxury goods will all be taxed at 28 percent.

Charges: School fees, courier services, Mobile charges, insurance premiums, banking charges, Wi-Fi, direct-to-home services will get costlier.

Air tickets: Business class is going to cost more under the GST.

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