After effects of demonetization and how it impacted daily life is still alive in people’s mind & our esteemed Prime Minister Mr Narendra Modi has started another major reform i.e. GST from July 1. People all over the country are once again left puzzled of its impact on their lives. The new prices of the items may fluctuate from low to high or vice versa depending on the right slab they come under.
Basically GST is the indirect tax levied on Goods and Services. It will be the game changer because it will replace all the indirect taxes imposed by the government. GST is single tax on supply of goods and services right from manufacturer to the consumer. Rates of new GST resume is divided into 4 main tax slabs i.e. 5%, 12%, 18% and 28%. Women’s are the one that controls the household of a common Indian family. Let’s analyze the effect of GST on Women’s shopping.
Clothes and foot wares:-
Yes, the prices will grow at high rates. All the clothes above ₹1000 will attract a tax of 12%, which is sharp increase from 5%. Only the clothes pricing below ₹1000 will be imposed a taxation of 5% only. 18% will be implemented on foot wares which costs more than ₹500. Like for example, if a dress’s cost was ₹208 in NON GST regime then the same dress would cost ₹166 in this new GST era. The more bad news is for the people who love window shopping. 15 to 18% tax has been increased.
Taxation on items like tooth paste, hair oil, soap has been reduced from 22 to 18%. The ladies who use products like bindi, maskara, vermilion regularly should be happy because these items are exempted from the tax making way for extra glow on their face. Initially, Sanitary napkins were exempted from the taxation, but later on it was implemented with a tax of 12%.
Kitchen products will have the mixed impact. Where on one hand all the basic food items like grains, fruits, vegetables rice, salt, pulses etc. are exempted from taxation, on the other hand taxation on LPG cylinder has been increased. Pasta, noodles, cake, pastry, chocolate, chewing gums, Biscuit all the favorite snacks are implemented with a taxation of 5% only.
Tax burden is likely to reduce in general. In the upcoming days we will come to know how GST has affected women and her shopping. The coming days will tell how much positively has GST affected the Indian economy. Let’s see whether it will GST make way for another boon in Indian economy.