GST Impact on Your Grocery Bill

GST Impact on Your Grocery Bill

India's biggest tax reform since Independence, the Goods and Services Tax (GST), rolled out past midnight on Friday in the Central Hall of Parliament has ushered in a new tax regime.
A minute after the stroke of midnight, President Pranab Mukherjee and Prime Minister Narendra Modi pressed the button to launch the new indirect tax regime on a digital screen with "GST" emblazoned on it in a golden hue.

Here is a hypothetical study of how the roll out of GST will change your kitchen budget:

Milk based products
Item	Price/unit before GST	Total taxes (% on pre-tax price)	GST rate	Price after GST (assuming same base value)	Change/unit
Packed curd	Rs 100/pack	8.7	0	Rs 92	8
Packed paneer	Rs 250/pack	9.17	5	Rs 240	10
Butter	Rs 50/pack	6.38	12	Rs 53	-3
Cheese	Rs 50/pack	13.64	12	Rs 49	1
Ice cream	Rs 45/pack	25	18	Rs 42	3

Packaged snacks & drinks
Item	Price/unit before GST	Total taxes (% on pre-tax price)	GST rate	Price after GST (Assuming same base value)	Change/unit
Biscuit	Rs 10/pack	25	12	Rs 9	1
Mithai	Rs 350/kg	9.03	5	Rs 337	13
Bhujia	Rs 302.5/kg	9.03	12	Rs 310	-8
Chewing gum	Rs 10/pack	42.86	28	Rs 9	1
Chocolate	Rs 20/pack	33.33	28	Rs 19	1
Corn Flakes	Rs 150/pack	32.74	18	Rs 134	16
Cold drinks	Rs 20	53.85	40	Rs 18	2
Juices	Rs 30/pack	15.38	12	Rs 2	1

*Note: Rate as per Maharashtra VAT Act as on May 19, 2017 and as per Octroi applicable in Mumbai city including cess @ 12% on aerated waters falling in HSN22** Rates for biscuits assumed as these were not declared