9 Nov 2016

Middle clas consumers are the economy

The GST oversight committee has determined that there will by four tranches of GST: 5, 12, 18 and 28%, with an additional premium (cess) payable on some luxury goods to help fund central distributions to states. About 50% of the CPI base will be taxed at 0%, including essential foodgrains and certain mass consumption goods. The kind of consumer goods typically bought by middle class consumers will probably fall into the 18% tranche. The kinds of goods which will attract the additional cess include luxury cars, tobacco and aerated drinks.

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