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You might be well aware of the fact that from July 1 the Government is planning GST rollout. Don't know what is GST? Then here is a brief: Unlike numerous taxes that you had to pay such as service tax, food tax, etc., the Government has come up with an idea of a single tax under GST (Goods Service Tax). While eating out (especially in A/c restaurants) and electronic equipment will cost you more, GST will not impact travel by local train. But that's not it, GST can impact your day-to-day life in other ways as well because the prices of everyday things including foods, drugs and hygiene products, are going to change. Here is a quick sneak peak on how GST rollout on July 1 can impact your everyday health and life.
GST Impact: Nil
Fresh milk, curd and buttermilk will have no impact because of GST. Cereals, fresh vegetables (roots and tubers), fresh fruits & fish (fresh and frozen) will cost you the same. Common salt is also not impacted by GST. Other foods items that are not impacted with GST include puffed, rice, papad and bread. As far as drugs and medicines are concerned, condoms, contraceptives and hearing aids are the ones that will cost the same as earlier.
GST Impact: 5%
The everyday things that will cost you more (5% GST) include paneer (packaged), frozen vegetables & fruits frozen, jaggery, vegetable fats and oils (Soyabean oil, groundnut oil, olive oil, etc). On the healthcare front, the diagnostic kits for hepatitis, vaccines, cyclosporin, oral rehydration salts and diagnostic test kits will have 5% tax. Coronary stents and coronary stent systems, cardiac catheters, artificial kidney and plastic walking aids like crutches, wheelchairs, walking frames and artificial limbs also have 5% GST.
GST Impact: 12 %
Butter and other fats (ghee, butter oil, etc.) derived from milk; dairy spreads and cheese to be expensive. You might need to think twice about snacking on dry fruits and nuts as it will cost your more. Animal fats and oils, ice and snow, soya milk drinks, fruit pulp or fruit juice based drinks are also included in the list. Feeding bottles (including nipples of feeding bottles), spectacle lenses, contact lens, blood glucose monitoring system (Glucometer) and the test strips to be taxed at 12%. Orthopaedic appliances, including walking sticks, crutches, surgical belts and trusses; splints and other fracture appliances; artificial parts of the body; and other appliances which are worn or carried, or implanted in the body, to compensate for a defect or disability is also included in the list. Sanitary towels, tampons, sanitary napkins and clinical (adult) diapers to have a tax of 12% as against the current 14.5%. Moreover, Ayurvedic, Unani, Siddha and Homoeopathic medicines to be taxed at 12%. Also read about NPPA releases provisional cap prices for 761 medicines including HIV, diabetes, cancer and vaccines, ahead of GST roll out on July 1.
GST Impact: 18%
The everyday items under this category include refined sugar, pasta, cornflakes, waffles, pastries and cakes, jams and jellies, condensed milk, sauces, soups and broths. Not just this, even ice cream and other edible ice, food mixes including instant food mixes to have 18% GST. Soap, essential oils, hair oil, toilet paper and other hygienic articles (hot water bottles, ice bags) to become dearer. Also, safety headgear such as helmets and glasses for corrective spectacles and noncorrective spectacles to be taxed at 18%. Even medical insurance is set to increase as the tax will be 18% from July 1 and not 15% as earlier.
GST Impact: 28%
Tobacco and tobacco products to have the highest impact because of GST at 28%. Other products that are also included in the list include chewing gum, white chocolate, cocoa butter, chocolates, aerated water (carbonated beverages), custard powder, pan masala and diabetic foods to be expensive. Beauty or makeup products, perfumes, shampoos, hair dyes (natural, herbal or synthetic), oral or dental hygiene (floss), deodorants and antiperspirants and shaving cream to be taxed at 28%. Wigs, false beards, eyebrows and eyelashes, aluminium foil and razors/razorblades to have 28% GST. You may also like to read about tobacco products should be slapped with 40% sin tax, Consumer Voices urges GST Council.
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