GST: Food grains, air travel to be cheaper

Tribune news service 

Chandigarh, May 23 

After paying through the nose for essential commodities, residents are in for relief with the announcement of new rates under the Goods and Services Tax (GST).

Now, the prices of food grains and cereals are expected to be slashed. Not only this, the GST will also end the disparity in the taxation system.

Ajay Jagga, an advocate, said the transport-related services like air travel and taxis would become cheaper as rates would go down. Medicines will also be available at cheaper rates as earlier the GST had been fixed at 5 against 11 per cent. He said cereal, rice, pulses had been exempted while the UT was levying 1 per cent tax on pulses. Hair oil and soap will also become cheaper. Rates of sugar, tea and coffee have also been reduced. The tax on air-conditioner has also been reduced from 28 per cent to 18 per cent in the city. The disparity in tax on sweets has also ended with the imposition of uniform tax (5 per cent) across the country. The tax on sweets in the city was 5 per cent while it was exempted from tax in Punjab. 

Kesav R Garg, charted accountant, said the new taxation system would increase the tax revenue of the Administration. Before the GST, the Chandigarh Administration did not have any powers to levy tax on the huge service sector. All professionals and service providers like chartered accountants, IT companies were exempted from tax, but now will come under the tax net. He said with the rental value getting cheaper and presence of SEZ (special economic zone) in the city, new businesses would be encouraged. 

This will lead to generation of employment for the youth in the tricity. With the service tax rate increased from 15 to 18 per cent, the service sector will become costly for the common man. One will have to pay more for personalised services.