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 |
Item | Price/unit before GST | Total taxes (% on pre-tax price) | GST rate | Price after GST (assuming same base value) | Change/unit |
Milk | Rs 45/litre | 0 | 0 | Rs 45 | 0 |
Vegetable & Fruits | Rs 50/kg | 0 | 0 | Rs 50 | 0 |
Bread | Rs 25/pack | 0 | 0 | Rs 25 | 0 |
Basmati rice | Rs 70/kg | 0 | 0 | Rs 70 | 0 |
Atta | Rs 30/kg | 0 | 0 | Rs 30 | 0 |
Pulses | Rs 110/kg | 0 | 0 | Rs 110 | 0 |
Packaged tea/coffee | Rs 150/pack | 10.29 | 5 | Rs 143 | 7 |
Packaged chicken | Rs 350/pack | 9.03 | 12 | Rs 359 | -9 |
Edible oil | Rs 125/litre | 16.82 | 18 | Rs 126 | -1 |
Masala | Rs 300/kg | 9.09 | 5 | Rs 289 | 11 |
Milk based products |
Item | Price/unit before GST | Total taxes (% on pre-tax price) | GST rate | Price after GST (assuming same base value) | Change/unit |
Packed curd | Rs 100/pack | 8.7 | 0 | Rs 92 | 8 |
Packed paneer | Rs 250/pack | 9.17 | 5 | Rs 240 | 10 |
Butter | Rs 50/pack | 6.38 | 12 | Rs 53 | -3 |
Cheese | Rs 50/pack | 13.64 | 12 | Rs 49 | 1 |
Ice cream | Rs 45/pack | 25 | 18 | Rs 42 | 3 |
Packaged snacks & drinks |
Item | Price/unit before GST | Total taxes (% on pre-tax price) | GST rate | Price after GST (Assuming same base value) | Change/unit |
Biscuit | Rs 10/pack | 25 | 12 | Rs 9 | 1 |
Mithai | Rs 350/kg | 9.03 | 5 | Rs 337 | 13 |
Bhujia | Rs 302.5/kg | 9.03 | 12 | Rs 310 | -8 |
Chewing gum | Rs 10/pack | 42.86 | 28 | Rs 9 | 1 |
Chocolate | Rs 20/pack | 33.33 | 28 | Rs 19 | 1 |
Corn Flakes | Rs 150/pack | 32.74 | 18 | Rs 134 | 16 |
Cold drinks | Rs 20 | 53.85 | 40 | Rs 18 | 2 |
Juices | Rs 30/pack | 15.38 | 12 | Rs 2 | 1 |
*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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