GST Bill Impact On Our Daily Budget: Cosumable Items and Long term Purchase Items

GST Bill Impact On Our Budget Daily: Cosumable Items and Long term Purchase Items.
India's biggest tax reform - Goods & Services Tax (GST), is all set to see the light of day soon. Touted as a reform which would reduce business transaction costs by creating a single seamless nationwide market, GST is expected to provide the much required tonic for economic growth. 

Rates for over 500 services and 1,200 goods were fixed, or 80-90% of items were slotted into the GST’s five broad rates in meetings on Friday and Thursday between the government and states as India races to meet the July 1 implementation deadline. 

While the contours of this landmark tax reform are still being analysed, what does this mean for you and your family. For an average, middle-class household, how does this tax change its budget.

We break it up for you 



NOTES: Consumption basket for a household spending Rs 16,000 per month in Mumbai.+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 HSN 22. Rates for biscuits assumed as these were not declared. 1) It is expected that the reduction in tax rates in GST regime as compared with present should be passed on to the end consumers. 2) No. of units shown above is considering an estimated monthly consumption.