Centre has proposed a four slab Goods and Service Tax rate structure. The bill will be implemented from April 1, 2017 and currently proposed 4-tier GST structure may hit the public’s pocket.
As per the current proposal, it is likely that common man would have to pay higher taxes on various items including kitchen staples such as edible oils, spices and chicken.
The prices of certain consumer durables like televisions, air conditioners, fridges and washing machines may however become cheaper with decrease in taxes.
Things that will get costlier:
*Spices- Turmeric, jeera, black pepper, oil seeds
*Refined oil, mustard oil and groundnut oil
*Mosquito repellent, insecticide
Things that will get cheaper:
*Electronic items- TVs, air conditioners, washing machines, inverters, refrigerators, electric fans
*Toiletry items- Perfumes, shaving cream, powder, hair oil, shampoo, soap
The government plans to roll out the new indirect tax regime from April 2017 and to implement it effectively, regular meetings are going on.
In a recent meeting with states this week, the Centre has proposed a four slab GST rate structure. The lowest rate proposed is 6 per cent, with two standard rates of 12 and 18 per cent.
The peak rate, which will mostly apply to FMCG and consumer durables, will be 26 per cent. Besides, it is also likely to be levied on demerit or sin goods and polluting items.