GST: The impact on middle-class, what is cheaper, dearer

Those who like to snack while they drink will also cough up more. The cost of side dishes have been increased, but not the cost of alcohol.

GST is expected to be a game changer. The rollout is scheduled for June 30 midnight and the general question that is being asked if daily expenditure would increase or decrease.

On the face of it, it appears that those families who earn between Rs 50,000 and 80,000 a month will not be affected much. However those in the income range of 1.50 lakh and above will have a more expensive life to lead if they decide to purchase higher-end vehicles. The expenditure would go up by 2 to 4 per cent.

While the real picture would be known only after the rollout, one could get an estimate on how his or standard of living would change post GST.

If you are an avid tea or ghee consumer, then you may cough up more since these products are taxed higher. For those who consume, chicken, oil, butter and bhujia, the rates would be cheaper.

However those households who purchase lot of coffee, masala powder, curd, ghee, biscuits, chewing gum, ice-cream, tea and chocolates will bear the pinch since these will be 1 to 5 per cent costlier.

Paneer, sweets and cornflakes have been taxed highest. Tobacco, petroleum and alcohol would be exempt from GST and the respective states would continue to fix the rates.

Those who like to snack while they drink will also cough up more. The cost of side dishes have been increased, but not the cost of alcohol.

There could be major changes in the rates of homes, cars and consumer durables. With service tax increasing to 18% from 15% all services will become dearer. Loans will get more expensive. Purchase of health, life and motor insurance will also get more expensive.

OneIndia News