Saturday 1 July 2017

GST impact on your grocery bill

India's biggest tax reform since Independence, the Goods and Services Tax (GST), rolled out past midnight on Friday in the Central Hall of Parliament has ushered in a new tax regime.
A minute after the stroke of midnight, President Pranab Mukherjee and Prime Minister Narendra Modi pressed the button to launch the new indirect tax regime on a digital screen with "GST" emblazoned on it in a golden hue.
Here is a hypothetical study of how the roll out of GST will change your kitchen budget:


Essential food items
ItemPrice/unit before GSTTotal taxes
(% on pre-tax price)
GST ratePrice after GST
(assuming same base value)
Change/unit
MilkRs 45/litre00Rs 450
Vegetable & FruitsRs 50/kg00Rs 500
BreadRs 25/pack00Rs 250
Basmati riceRs 70/kg00Rs 700
AttaRs 30/kg00Rs 300
PulsesRs 110/kg00Rs 1100
Packaged tea/coffeeRs 150/pack10.295Rs 1437
Packaged chickenRs 350/pack9.0312Rs 359-9
Edible oilRs 125/litre16.8218Rs 126-1
MasalaRs 300/kg9.095Rs 28911



Milk based products
ItemPrice/unit before GSTTotal taxes
(% on pre-tax price)
GST ratePrice after GST
(assuming same base value)
Change/unit
Packed curdRs 100/pack8.70Rs 928
Packed paneerRs 250/pack9.175Rs 24010
ButterRs 50/pack6.3812Rs 53-3
CheeseRs 50/pack13.6412Rs 491
Ice creamRs 45/pack2518Rs 423

Packaged snacks & drinks
ItemPrice/unit before GSTTotal taxes
(% on pre-tax price)
GST ratePrice after GST
(Assuming same base value)
Change/unit
BiscuitRs 10/pack2512Rs 91
MithaiRs 350/kg9.035Rs 33713
BhujiaRs 302.5/kg9.0312Rs 310-8
Chewing gumRs 10/pack42.8628Rs 91
ChocolateRs 20/pack33.3328Rs 191
Corn FlakesRs 150/pack32.7418Rs 13416
Cold drinksRs 2053.8540Rs 182
JuicesRs 30/pack15.3812Rs 21
*Note: Rate as per Maharashtra VAT Act as on May 19, 2017 and as per Octroi applicable in Mumbai city including cess @ 12% on aerated waters falling in HSN22
** Rates for biscuits assumed as these were not declared

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