The landmark Goods and Services Tax (GST) was passed by the Rajya Sabha on Wednesday. Hailed as the biggest tax reform since independence, the one-nation-one-tax regime will convert 29 states into a single market. The GST will be implemented from April 1, 2017. It is expected to add 2 percentage points to India's GDP, according to economists.
The adoption of the GST regime will make manufacturing cheaper, leading to lower prices of a number of manufactured goods. On the other hand, services are likely to become costlier under the GST.
According to experts, these items could become cheaper:
Auto: Prices of entry-level cars, two-wheelers, SUVs may fall
Car batteries likely to get cheaper
Paint, cement prices likely to fall
Electronics items like fans, lighting, water heaters, air coolers, etc. will get cheaper
And these could become costlier:
Cigarette prices likely to go up as GST rate for tobacco will be higher than current duties
Mobile phone calls may get costlier as service tax will go up
Textile and branded jewellery may become costlier