GST Impact : How Daily Life of Indian Consumer will Change

Anmol Kumar

March 30, 2018

GST Impact on Indian Consumer

GST (Goods and Service Tax), the biggest tax reform in the country has been implemented from July 1st, 2017. It is an indirect tax for the complete nation, which will remove all the other taxes and will make India one unified common market.

Reduction in transaction costs of doing business would undoubtedly lead to improved competitiveness for trade and industry. GST will affect each and every sector of the country along with the living standards of the residents.

Looking at the federal structure of India, the GST is implemented in a dual format including a Central GST (CGST) and State GST (SGST). Both central and state governments will simultaneously levy GST across the value chain, in which, the central government would levy and collect Central Goods and Services Tax (CGST), whereas, States would levy and collect the State Goods and Services Tax (SGST) on all the transactions.

The GST will affect almost every sector of living in the country, let us see at some before GST and after GST price examples, which will show us a demo of what we will have to deal in daily life.

Base Price Current Taxes* After GST
Life Insurance Rs 15,000 Rs 2,250 Rs 2,700
Gold Ornaments Rs 60,000 Rs 1,800 Rs 2,000
Hotel Stay Rs 7,000 Rs 1,400 Rs 1,960
Refined Cooking Oil Rs 200 Rs 23 Rs 10
Air Travel (Economy) Rs 5,000 Rs 300 Rs 250
Train Travel (AC) Rs 3,000 Rs 131 Rs 150
Telecom (2 phones + 1 DTH bills) Rs 2,500 Rs 375 Rs 450
Eating Out (4 members) Rs 2,000 Rs 270 Rs 360
Apparel (Readymade) Rs 2,000 Rs 130 Rs 240
Entertainment (4 members) Rs 1,200 Rs 360 Rs 336

Note*- The current taxes include excise, sales tax, VAT, entertainment tax, luxury tax etc. An average amount of these taxes are considered.

These are some examples from daily life, which have been affected by implementing GST. Average base price of these categories has been taken to show you after GST and current scenarios of taxes.


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