The Goods and Services Tax or GST Bill is set to be rolled from July 1, 2017 and a range of consumer products will witness a dynamic shift in their pricing. GST is a new centralized tax system that will replace a number of existing indirect taxes, thereby simplifying the overall taxation process. The proposed tax system will have a total of five slabs including zero percent, five percent, 12 percent, 18 percent and 28 percent tax as standards. There are 1,211 items placed under these slabs by the government. With this, some goods and services will become dearer, but others will get more affordable. Here’s a look at those items that are set to get cheaper. Also Read - New iPhone SE to be the most affordable 5G phone from Apple, to launch in 2022
SmartphonesAlso Read - iPhone 13 launch date and more details tipped as part of new leaks
India is one of the hottest markets for smartphones, as a result of which brands like Apple and Xiaomi are heavily investing in the country. Post GST implementation, the tax which is currently applicable on smartphones will come down to 12 percent. This basically will translate into cheaper smartphones for consumers. In addition to that, smartphone components also fall into the same tax slab, which will also impact the manufacturing process. Also Read - iPhone 12 Mini reaches end of production already, say rumours
The Narendra Modi-led government is squarely focused on promoting indigenous manufacturing and trade. Given the strong push towards Make in India, it is expected that there could be further incentives and relaxations for manufacturers. If companies like Apple, which are lobbying for component import for assembling in India, want to benefit from the new tax system, they might particularly benefit while homegrown brands such as Micromax stand a chance to win more customers with lucrative pricing.
If you have been wanting to purchase of a fancy new car, then you should wait till GST is rolled out. As per the GST Bill, SUVs and luxury or premium cars will get cheaper. Currently, high-end cars are levied a tax between 52-55 percent, however, post GST, it will come down to 43 percent, making them relatively cheaper. It is to be noted that only the premium, luxury cars will get more affordable while the small cars will, ironically, cost dearer.
The two-wheeler sector currently faces as many as 13 different types of taxations, and it is expected that the tax will come down following GST. Depending on the current supply chain arrangement and state of operation, two wheelers are likely to get cheaper. ALSO READ: GST impact: Here s a look at how it affects electronics, services and automobile
Post GST, if you book a movie ticket and theatrical performances online, you are likely to pay less. Currently, the entertainment tax is about 35-40 percent according to the state. In future, it will come under the 28 percent tax slab, making the tickets cost slightly lesser. For most states, the tax is expected to be uniform at 18 percent while those states with an existing low tax rate, this tax will go higher.
Ola, Uber, other transport
Think hailing an Ola cab is expensive? Things are going to change soon. Services such as Ola, Uber, railways, and air travel (economy), will attract a GST of five percent which will bring the fares marginally down. What’s more; hotel prices are also going to shrink as room tariff below Rs 1,000 will be exempted from GST, helping you plan the budget trip just right. ALSO READ: GST impact: Mercedes-Benz cuts prices of Made in India cars by up to 4%