GST (Goods and Services Tax) is a new revolution is an Indian economy. It is a new indirect tax that removes all type of indirect taxes. It is very important to understand the GST impact on goods and services. You should be informative to understand GST impact in an easy way through example. These are some valuable information that helps you to understand GST effect in positive and negative ways. There are some goods and services that will be expensive and some will be cheaper.
0% Category Goods: First of all let us discuss with daily use product like fresh vegetables and fruits, unbranded atta maida, besan, gur, milk, eggs unpacked paneer, unbranded natural honey, salt, fresh meat, chicken, buttermilk and many more daily uses product become cheaper. The governments decided to give some relief to common man. You can save monthly 500 to 1000 Rupees by the GST special category. The rate of GST on these daily use items is 0%. It is very big decision in this new revolution of indirect taxes in India. You need not pay any types of taxes for in these category products.
5% GST Category Goods: The second is the list of goods item that charged 5% GST like Sugar, tea, roasted coffee beans, edible oils, cream, milk powder, milk food for babies, packed paneer, frozen vegetables, cashew nuts, pizza bread, sabudana, fish fillet, packed food items, cashew nuts, and spices. It is a positive effect on these items to get some priceless costly. You can save 10% money on this item that is very beneficial for the consumer. If you spend Rs 200 on Sugar you need not to pay 18% indirect tax on sugar. In this way, you can save 10% on these item purchases.
12% GST Category Goods: This is the list of goods that charged 12% GST like butter, ghee, almonds, fruit juice, packed coconut water, packed fruit, nuts, pickle, murabba, chutney, jelly, jam, namkeen, bhujia, frozen meat and dry fruits. You can easily save 5% money from these category items. The prices list of these items little decrease. This is a good sign of GST in daily use product price decrease.
18% GST Foods Item: There is some food item that is categorized into 18% GST like biscuits of all branded, cakes and pastries, soups, ice cream, pasta, curry paste. This product becomes little costly. You have too little more for these branded products.
GST Impact on Footwear: The GST rate is 0% on a handloom. It is a pure indication that government wants to promote handloom. You can get these products at very cheaper price. The second list is 5% GST Footwear up to Rs 500 and apparels up to Rs 1000. It will decrease the price of these items that is a positive sign. You can save some money by purchasing these items. The 12% GST applies to footwear up to Rs1000 and apparel above Rs 1000. The third is 18% GST category footwear and garments with branded product and headgear. The last is VIP category that is under 28% GST like import product like foreign branded cloth and footwear above Rs 5000.