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GST: What Will Become Cheaper And More Expensive

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GST: What Will Become Cheaper And More Expensive

Car prices are likely to come down due to GST.


Highlights

  1. Prices of entry-level cars, two-wheelers may fall
  2. Paint, cement prices likely to fall
  3. Mobile phone calls may get costlier as service tax will go up
The landmark Goods and Services Tax (GST) was passed by the Rajya Sabha on Wednesday. Hailed as the biggest tax reform since independence, the one-nation-one-tax regime will convert 29 states into a single market.

The GST will be implemented from April 1, 2017. It is expected to add 2 percentage points to India's GDP, according to economists.

The adoption of the GST regime will make manufacturing cheaper, leading to lower prices of a number of manufactured goods. On the other hand, services are likely to become costlier under the GST.

According to experts, these items could become cheaper:
  • Auto: Prices of entry-level cars, two-wheelers, SUVs may fall
  • Car batteries likely to get cheaper
  • Paint, cement prices likely to fall
  • Electronics items like fans, lighting, water heaters, air coolers, etc. will get cheaper

And these could become costlier:
  • Cigarette prices likely to go up as GST rate for tobacco will be higher than current duties
  • Mobile phone calls may get costlier as service tax will go up
  • Textile and branded jewellery may become costlier

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