With the Rajya Sabha passing all the four GST bills in the parliament, the nation’s revolutionary tax regime GST (Goods and Services Tax) is all set to become a reality on June 30, 2017. GST is expected to keep a check on transactional costs by introducing a unified tax system.

Prospects saying GST would improve the GDP and help the economy in the long run. Though the reform might come with a mixed bag of surprises.

GST should mark a positive impact on most sectors. Based on the GST implementation experience derived from other nations, India might experience an inflationary impact, which is expected to fade with the rollout of measures such as anti-profiteering. GST should lead to reduced cost for most of the supplies to the end-users in the long-run.

Here’s a quick look at what the GST could mean for the common man:

Services that are likely to become expensive including Mobile phone bills, Premiums for life insurance plans, Investment management and banking services, Online ticket booking services, Basic luxuries such as DTH services, etc.

Prices of the following essential services are also likely to go up - Healthcare, Residential Rentals, School and educational fees, Rail/metro commute, Courier services, etc.

Services that might see a price drop in most of the states are movie tickets since entertainment tax is included in GST, dining out in restaurants/hotels etc.

Vehicles and certain essential goods to witness price drop along with Two wheelers, Luxury and SUV or premium cars, Entry level sedans excluding small cars.

On the basis of the current landscape and other associated indirect taxes, the common man can expect a marginal impact on white goods such as Stoves, Washing Machines, Televisions, Shampoos, Toothpastes, Soaps etc.

The government with its determined outlook towards injurious goods proposed a high tax rate which that include cigarettes, aerated drinks, and tobacco products.

Here’s the four-tier GST tax rates

Positive impact expected in long-term!

These forecasts are based on the statements/data released by government officials and authorities.