Goods and Services Tax reforms implemented: Which items will get expensive?

The Goods and Services Tax (GST) reforms took effect today, lowering the prices of most items from the now-eliminated 12 per cent and 28 per cent slabs. Union Minister Ashwini Vaishnaw expressed gratitude to Prime Minister Narendra Modi and said that the move will lead to savings in households.

"I want to wish everyone Navratri. PM Narendra Modi has taken a historic decision to reduce the tax slabs, which will help every household save. Bachat mahotsav has begun. Shopkeepers and customers both are very happy...People will save money on about 99 per cent of the daily use items. I thank PM Modi for this," he said today.

Earlier, PM Modi called the implementation of the reforms the GST Bachat Utsav.

Here are items that will be placed in the 40 per cent bracket.

1. All tobacco products, including cigarettes, bidis, pan masala, gutka, and chewing tobacco, will attract a 40 per cent GST.

2. Petrol cars with an engine over 1200 cc and diesel cars with an engine over 1500 cc will attract more GST. It will now be taxed at 40 percent. However, the next tax will be slightlylower because of the removal of cess.

3. Motorcycles above 350 cc will attract 40 per cent GST. Earlier, it was 31 per cent, including cess.

4. Soft drinksand other carbonated drinks will attract a GST of 40 per cent, 12 percentage points more than the previous GST liability of 28 per cent.

5. All goods with added sugar or other flavoured substances will also attract more tax.

6. CaffeineBeverages. Carbonated beverages with fruit juice.

7. Aircraft for personal use. Yachts and other ships meant for pleasure or sports.

8. Revolvers and pistols.

9. Activities like betting, casinos, gambling, horse racing, and lottery.