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GST will be easy on household budget

An average household in the state consumes 50 kg of rice per month which means a reduction of Rs 100.

Hyderabad: There is much speculation on whether the consumer will benefit or not from the changeover to the Goods and Services Tax (GST) due to be introduced from July 1.

An average household spending Rs 11,667 per month on food, stores and medical items in Telangana could save up to Rs 600 per month after the rollout of GST, according to an estimate made by the state finance department.

Since the five per cent value-added tax (VAT) on rice will be removed, this staple will be cheaper, with a saving of Rs 100 per month on average consumption.

Both AP and TS levy five per cent VAT on rice, which is not there in other states. With rice now in the zero tax slab officials said the price will come down by Rs 2 per kilo and the benefit should be passed on to the consumer.

No change in prices of essential items
An average household in the state consumes 50 kg of rice per month which means a reduction of Rs 100.

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“The invoices and bills issued by traders selling rice varieties in wholesale and retail markets will be verified. These bills issued after GST rollout from July 1 will be compared with bills issued during the VAT regime for the past six months. This will help us to detect whether the VAT cut was passed on to consumers or not. There should be a reduction of Rs 2 per kilo,” said Etela Rajender, minister for finance and civil supplies. There will be no change in the price of essential items such as milk, vegetables and fruits, bread, atta (flour) and pulses.

There are no taxes on them in the current VAT regime and the GST regime too puts them in the zero tax category. The GST on tea and coffee will be five per cent. Average spending on these items should go down by Rs 30 a month.

The tax on spices will come down from 25 per cent to five per cent, a monthly saving of Rs 40.

( Source : Deccan Chronicle. )
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