Government hopes to please households by exempting everyday items in GST


The Modi government wants the country to stay fit. And it has in mind children, farmers and millions of people who work hard every day. The Goods and Services Tax thus strives to make daily living easy.

The consumer will have to pay zero tax on staples like fruits and vegetables, wheat, rice and milk. This is not a populist move, but it will certainly keep the voters–the farmers and other civilians–happy.

However, sugar, coffee and tea are going to be taxed at 5 percent. So if you are a filter coffee loving south Indian or a tea loving Indian then your beverage will eat up the coins in your pocket.

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Housewives, too, may complain a little because edible oil will now be expensive by 5 percent and it is going to allow for gossip in many kitchens across India. More expensive edible oil would mean restaurants hiking the price of food on the menu too.

However there are things that will get expensive.

Those who love fancy cars will have to shell out more money apart from the duties enforced on imported products. For example, luxury cars such as the Range Rover, BMWs, Audis and Mercs will attract 28 per cent GST and a 15 per cent cess.

However, the automobile players in the premium segment are not too perturbed as they believe that connoisseurs will not mind paying the additional tax for getting the vehicle into his shed.

Remember that not all car owners will be kept happy. Owners of diesel cars will have to pay a lot more henceforth. Small cars have the same tax with a cess of 1 percent on petrol cars and 3 percent on diesel cars.

Now washing machines and other similar goods, which garnered a tax of 23 percent, is now going to be taxed at 28 percent.

In all, many households will be happy with the way this government has sought to reduce the tax on items of daily needs and one must wait to see how cheap would such items cost herewith.


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