The ongoing war between Russia and Ukraine for the last several days has also affected the price of gold and silver in India. Apart from these, everything, including edible oils, spices, tea, coffee, sugar, sweets and life-saving drugs like insulin, can be costly. In fact, the GST Council may consider increasing the minimum rate of Goods and Services Tax (GST) from 5% to 8% in the 47th meeting to be held.
According to sources, a group of state finance ministers (GOM) is likely to submit its report to the council by the end of this month. It may suggest several steps like raising the lowest tax slab and rationalizing the slab.
Presently there are four rates in the tax slab of GST – 5%, 12%, 18% and 28%. Essential commodities are exempt from this tax or are kept in the lowest slab. Luxury items are kept in the highest tax slab. According to sources, the GoM may propose to increase the minimum rate of tax from 5% to 8%.
Here’s a list of things that are likely to become expensive post-elections:
- Edible Oil, Spices, Tea, Coffee, Sugar,
- India Sweets or Mithai
- Cashew
- Life-saving drugs and medicines, like insulin
- Walking sticks
- Fly-ash blocks
- Incense sticks and kites
- Marble, rubber
- Biogas
- Fertilizers
- Wind-based Atta Chakki or Pawan Chakki
- Matting, coir-mats and floor covering
- Motor Cab rental without fuel cost
- Transport services by AC vehicles, radio taxis
- Aircraft leasing
- Pilgrimage scheduled transport or travel by air (including chartered flight)
- Tour Operator Services
- Print media advertising space
- Employment in newspaper printing
- Shipping goods out of the country