visit a nearby store. select five items of daily consumption and study the following impact of demand on these products
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Answer:
On Friday, the Goods and Services Tax Council recommended reduction of levy on categories including detergents, shampoo, deodorants, cosmetics and chocolates to 18%.
Most manufacturers cheered the move, saying they would pa ss on the benefits to consumers by either reducing the price tags or increasing the quantity being sold at the existing price. The price correction is expected to be sharper in those segments where the pre-GST tax was higher than 18%.
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Answer:
The big concern for any Indian family is how the monthly family budget gets managed in the light of the GST. When such a wide-ranging reform measure is announced it is definitely going to hit your daily expenses in some way or the other. Here are the implications of the GST implementation on 10 such items of daily use for an Indian family
1. Mobiles will get cheaper, but mobile bills will get costlier. The average tax imposition on mobile phones is currently at around 14-15%. In the post GST scenario, this rate will come down to 12% bracket. However, mobile bills attract service and that will now be payable at a higher rate. Against the 15% service tax that your mobile phone company was charging you, it will be charging you 18% GST under the extant rates. Thus households will be able to buy smart phones at lower prices but the mobile bills are likely to go up.
2. Your monthly clothing bill will come down sharply. This will be a double benefit for households. For example, the premium branded clothing that used to attract 24% tax in the previous regime will now attract only 18% GST. In case of cheaper clothing below Rs.1000, the GST will be still lower at just 12%. A similar principle will also apply in case of footwear too.