NEW TAX FORMAT WILL TRANSFORM TAXATION FOR EVERY SECTOR – FROM REAL ESTATE TO VEHICLES TO CONSUMER DURABLES TO BRANDED GOODS
What we buy , how we buy and why we buy are questions that have for long fascinated anthropologists. But GST is expected to add a new twist to the tale of Indian consumerism.
Cited as the “single largest taxation reform” in independent India, GST is set to change taxation for every sector -from real estate to vehicles to consumer durables to branded goods to luxury items.
Among the items getting cheaper are chicken, oil, butter and bhujia (snack), while purchase of tea, coffee, masala powders, curd, cheese, biscuits, chewing gum, chocolate and ice cream will be dearer by 1-5%.
At the top of the chart with the highest taxation increase are items like paneer, sweets and cornflakes. Tobacco, alcohol and petroleum continue to be exempted, allowing the state government to dictate rates.
For a middle class family that earns between Rs 50,000-80,000 a month, the impact on the monthly budget will not be more than a few hundred rupees. For those earning in the Rs 1.75 lakh bracket, the purchase of luxury items and SUVs or sedans will not necessarily result in an increase of more than 2-4%.