The revised structure of the tax on goods and services (GST), which was announced at the beginning of this month, will enter into force from tomorrow through India. Only two boards – 5 % and 18 % will remain within the new system. A special 40 % rate will only apply to products such as Mr. Masala, cigarettes, sweet aerated drinks and carbonated drinks.
In Mumbai, one of the busiest consumer markets in the country, merchants and retailers are preparing for this shift. The goods and services in the city now fall into these two rates to simplify the tax system for companies and consumers. However, a higher rate of 40 % was reserved for selected items.
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What can be cheaper under GST 2.0
Everyday essentials
Several household products are expected to have been taxed by 12% to 5% album. This includes:
Toothpaste, soaps and shampoos
Packaging foods such as biscuits, snacks and juices
Milk objects such as ghee and condensed milk
Read | Reducing GST rates from Monday, goods and services to become cheaper
Bikes and stationery
Clothing and shoes under a certain price point
Why it matters: Even small savings on daily use items can increase and alleviate monthly expenditures for middle -class households.
Household and electronics
Items from 28% of the holder can now fall below 18% of the board, which reduces prices by 7-8%. The products are likely to benefit from:
Air conditioning
Refrigerators and dishwashers
Cement, housing and construction key
Why it matters: lower prices cause appliances and building materials more accessible to the expanding middle class of India.
Read | Amul reduces prices over 700 items after GST reforms: from GHI and PANEER to butter – check what will be cheaper
Cars
The automotive sector is one of the biggest profits.
Small cars (engine size below 1,200 cc) can GST to reduce from 28% to 18%
Two wheels could also move to the bottom plate
Luxury cars and SUVs will continue to attract higher taxes
Why it matters: lower taxes of small cars and two -wheelers could revive sales and benefit authors such as Maruti Suzuki, Hyundai and Tata Motors.
Insurance and financial services
Insurance bonuses, currently taxed to 18%, can be moved to a lower plate or even exempt.
Why it matters: Available insurance can increase coverage between middle -income households and offer more financial security.
What will remain costly
The government confirmed that some goods will continue to face higher taxation within 40% of the “Tax of Sin”. It belongs to:
Tobacco, alcohol and Mr. Masala
Platforms for betting and playrooms online
Petroleum products (maintained outside GST, so without fuel -free relief)
Luxury items such as diamonds and precious stones
Read | Reform GST: Indian companies will probably witness up to 7% of income growth after new rates, says Crisil
What will remain costly
The government confirmed that some goods will continue to face higher taxation within 40% of the “Tax of Sin”. It belongs to:
Tobacco, alcohol and Mr. Masala
Platforms for betting and playrooms online
Petroleum products (maintained outside GST, so without fuel -free relief)
Luxury items such as diamonds and precious stones
Daily impact
For consumer means GST 2.0:
Cheaper shopping baskets – foundations such as soaps, snacks and packaged food costs less.
Savings of large tickets -aut, ACS and TVs are becoming more accessible.
Financial relief – lower premiums facilitate household budgets.
(Tagstotranslate) New GST (T) GST Bill Format
