NEW DELHI: An average Indian household is saving up to Rs 320 every month on purchase of commonly used goods including cereals, edible oil and cosmetics post GST implementation, a finance ministry source said citing an analysis of consumer expenditure data. The Centre rolled out the GST on July 1, 2017, amalgamating 17 different central and state taxes including excise duty and sales tax or VAT.
The GST not just made India one market by levying uniform tax rates on goods and services, it also did away with tax-on-tax prevalent in the previous system. Also, GST rates have been lowered on an array of commonly used goods and services which resulted in monthly savings for consumers. An analysis of household expenditure pre and post GST rollout shows tax rates have come down on as many as 83 items including on food and beverages as well as daily use goods like hair oil, toothpaste, soap, washing powder and footwear.
If a household spends Rs 8,400 a month post GST on 10 goods — cereals, edible oil, sugar, chocolates, namkeen and sweets, washing powder, tiles, furniture and coir products and other household products — its monthly savings would come to Rs 320, the source said.
