Items cheaper after GST: A list by CBEC

by Kasmin Fernandes 2019-10-07 08:45:40

GST or the goods and services tax became reality on June 30th. India changed its tax reform after over 150 years and the confusion among manufacturers, distributors and retailers was obvious and very well visible. GST does not differentiates between a service and a good; thousands of these products as well as services were accommodated under different GST tax slabs.

The Central Board of Excise and Customs (CBEC) has rolled out a list of the common use items which will become cheaper post GST.

Item	Pre-GST incidence	GST rate
Wheat	2.50%	0%
Rice	2.75%	0%
Unbranded flour	3.50%	0%
Curd/Lassi/Butter Bilk	4%	0%
Unbranded natural honey	6%	0%
Children's picture, drawing or colouring books	7%	0%
Ultra high temperature (UHT) milk	6%	5%
Tea (other than unprocessed green leaves of tea)	6%	5%
Milk powder	6%	5%
Sugar	6%	5%
Sweetmeats	7%	5%
Vegetable edible oils	6%	5%
Spices	6%	5%
Footwear up to Rs. 500	10%	5%
Kerosene pressure lantern	8%	5%
Coal	9%	5%
Ketchup and sauces	12%	12%
Toppings, spreads (other than mayonaise, salad dressings, mixed condiments and mixed seasonings)	12%	12%
Mineral water	27%	18%
Sugar confectionery	21%	18%
Toothpowder	17%	12%
LED	15%	12%
X-Ray films for medical use	23%	12%
Diagnostic kits and reagents	16%	12%
Fixed speed diesel engines of power not exceeding 15HP	16%	12%
Fly ash bricks and fly ash blocks	16%	12%
Sewing machine	16%	12%
Hair oil	27%	18%
Toothpaste	27%	18%
Soap	27%	18%
Other footwear	21%	18%
LPG stove	21%	18%
Aluminium foils	19%	18%
School bag	22%	18%
Printers (other than multifunction printers)	19%	18%
Staplers	27%	18%
Tractor rear tyres and tubes	20%	18%
Helmet	20%	18%
CCTV	19%	18%
Baby carriages	27%	18%
Plastic tarpaulin	19%	18%
Bamboo furniture	23%	18%
Headgear and parts thereof	27%	18%
Cement	29%	28%

As you can see, items like wheat, rice, unbranded flour, cur/lassi/butter/milk, unbranded honey and children’s picture/drawing/coloring books have got a major deduction on the tax implied on them before GST. Items which are a necessity for the common man are attracting a tax percentage of 0%.

Other than the list provided by CBEC, here is a list of items which are expected to get cheaper:-

Prices of movie tickets
Dining in restaurants
Two wheelers
Entry Level Sedan’s
SUV’s and luxury or premium cars
Televisions
Washing Machines
Gas Stoves

GST is said is to increase the GDP (Gross Domestic Product) of India by 2% in just one year; and with the reduced tax rates, the common man is bound to be happy by Modi’s Sarkar. GST will also make India a business friendly country and thereby increase the total FDI (Foreign Direct Investments) in our country.

GST is considered to be a historical tax reform in India, but like everything, it has it’s pros and cons. We will be discussing them in the coming articles, stay tuned.