GST launched on July 1: What new tax reform means; items to be dearer, cheaper; different tax slabs with product details

The Goods and Services Tax came into force at the stroke of midnight on Friday. GST was in reckoning for last 17 years but it became reality on Friday. GST unified more than a dozen central and state levies but doubts remained if the transition to a national sales tax will be without any glitch.

The new tax regime was ushered in at a late night event in the historic Central Hall of Parliament, reminiscent of the midnight ‘tryst with destiny’ in 1947.

# What is GST?

The GST aims are creating a single market, removing tax barriers between states. A plethora of cascading central, state, interstate and local taxes will be replaced by a single, nationwide, value-added tax on goods and services when the GST rolls out.

# What will be cheaper and what will be costlier after implementation of GST on July 1

# Products

Cheaper: Foodgrains, Hair oil, Soaps, Toothpaste, Electricity, Meat, Fresh vegetables, Honey, Ketchup, Jams, Jaggery, Agarbatti, Prasadam, Kumkum, Bindi, Pappad, Contraceptives, Coal production, Life-saving drugs, All capital goods, All industrial intermediaries, Milk and curd, Sugar, Tea, Coffee, Edible oil

Expensive: Small and big automobiles, Aerated drinks, Pizza bread, Sevaiya, Condensed milk, Frozen vegetables, ACs and refrigerators, Mithai or sweets, Frozen meat, Ayurvedic or homeopathy medicines, Umbrella, Electric vehicles, Mobile phone manufacturing, Pastries and cake, Pasta, Ice cream, Betel nut, Vinegar, Sharbat, Chewing gum, Chocolates, Custard powder, Waffles containing chocolate, Pan masala and gutka, Scented Zarda and filter Khaini, Cigarettes and cigars

# Services

Cheaper: Education, Healthcare, Economy class air travel, Cab services, Train travel, Freight levy, Non-AC restaurants

Expensive: Telephone bills, Insurance and banking services, Business class air travel, Sale of newspaper space for ads, Restaurants with liquor license, Five-star hotels, Work contracts like white washing, Movie theatres

# List of items under different slabs for your perusal:

# Exempted list of items (0%)

# Goods

Stationary: Stamps, judicial papers, printed books, newspapers, Children's' picture, drawing or colouring books

Cosmetics: Bindi, sindoor, bangles, Kajal, Human hair

Textiles: Handloom, Jute, salt

Edibles:  Fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, Bones and horn cores, bone grist, bone meal, etc.; Salt - all types, hoof meal, horn meal, Cereal grains hulled, Palmyra jaggery

# Services

Hotels and lodges with tariff below Rs 1,000, grandfathering service

GST Live: India all set for biggest tax reform, traders protest

# Items with 5% tax

# Goods

Edibles: Cream, skimmed milk powder, branded paneer, frozen vegetables, items such as fish fillet, coffee, tea, spices, pizza bread, rusk, sabudana, cashew nut, cashew nut in shell, raisin, ice and snow, packaged food items

Household items: Kerosene, agarbatti, kites,

Stationary: Postage or revenue stamps, stamp-post marks, first-day covers,

Industrial items: Coal

Healthcare: Medicines, stent, lifeboats, bio gas, insulin,

Personal care: apparel below Rs 1000, footwear below Rs 500

# Services

Railways, air transport, small restaurants

# Items with 12% tax

# Goods

Edibles: Frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, namkeen, Ketchup & Sauces

Personal care: Apparel above Rs 1000, all diagnostic kits and reagents, spectacles, cellphones, tooth powder, ayurvedic medicines, umbrella, sewing machine

Stationary: Exercise books and note books, colouring books, picture books

Sports: Playing cards, chess board, carom board and other board games like ludo

Kitchen items: Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs,

# Services

Business class air ticket, fertilisers, work Contracts, state-run lotteries, non-AC hotels

# Items with 18% tax

# Goods

Edibles: Biscuits, flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings,

Stationary: Tissues, envelopes, tampons, note books, steel products, weighing machinery , printers ,

Electrical Equipments: Electrical transformer, CCTV, optical Fiber, printed circuits, camera, speakers and monitors

Cosmetics: Kajal pencil sticks

Miscellaneous: Headgear and parts thereof, aluminium foil, bamboo furniture, swimming pools and padding pools, footwear costing more than Rs 500, bidi patta

# Services

Restaurants inside five-star hotels, AC hotels that serve liquor, telecom services, IT services, branded garments and financial services, room tariffs between Rs 2,500 and Rs 7,500

# Items with 28% tax

# Goods

Auto: Automobiles, motorcycles, aircraft for personal use,

Personal care: Deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, bidis, chewing gum,

Electronic equipments: Weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, water heater, dishwasher

Edibles: Chocolate not containing cocoa, waffles and wafers coated with chocolate, pan masala, aerated water

Construction: Paint, wallpaper, ceramic tiles

# Services

Hotels with room tariffs above Rs 7,500, 5-star hotels, race club betting, cinema, private-run lotteries authorised by the states