GST Overhaul: Discover and Evaluate Cost Savings on Products After Latest Tax reforms Update

The Indian government has announced the roll-out of next-generation Goods and Service Tax (GST) reforms, aiming to bring direct savings to households by reducing taxes on everyday essentials and packaged foods. To help consumers make informed decisions about their purchases, a dedicated website named 'savingswithgst.in' has been launched.

Prime Minister Narendra Modi announced the roll-out of these reforms during Diwali this year. The website, managed by My Gov, a citizen engagement platform of the government, offers categories such as food items, snack items, household items, household electronics, kitchen items, and leisure and lifestyle.

The four-tier tax structure has been reduced into two slabs: 5% and 18%. Household goods like soaps, shampoos, toothbrushes, toothpaste, tableware, and bicycles will attract 5% GST. On the other hand, consumer durables like TVs less than 32 inch, air conditioners, and dishwashers will move to 18% from 28%.

Food items such as packaged namkeens, Bhujia, sauces, pasta, chocolates, coffee, preserved meat, etc., have been reduced from 12% or 18% to 5%. However, tobacco, pan masala, aerated drinks, and luxury goods will be taxed at 40%.

The GST council has also approved tax cuts for farm machinery and irrigation equipment, which will now be taxed at 5% instead of 12%. Small cars, two-wheelers below 350cc will also fall to 18% from the earlier 28%.

The website, 'savingswithgst.in', is a tool for consumers to compare prices of products before and after the rate rationalisation, effective September 22. Customers can visit the portal, add the goods of their choice in the cart, and see the prices under three different categories: Base Price, Selling Price under VAT, and Selling Price under Next-Gen GST.

For instance, if milk is selected from food items and added to the cart, the price of milk at Rs 60 per litre will be shown as Rs 63.6 with VAT and Rs 60 under Next-Gen GST. Ultra-High Temperature (UHT) milk, pre-packaged and labelled chena or paneer, and all Indian Breads will have a zero GST.

The website is promoted by MyGovIndia through its official X account. It allows users to scan a QR code or visit http://savingswithgst.in to explore and compare prices. The website's tagline is: "Next-Gen GST is here! Wondering how much you can save? Add your picks to the cart and see the difference yourself."

In conclusion, the next-generation GST reforms aim to make everyday purchases more affordable for households. By visiting 'savingswithgst.in', consumers can make informed decisions about their purchases and enjoy the benefits of these reforms.

GST Overhaul: Discover and Evaluate Cost Savings on Products After Latest Tax reforms Update