As we are about to enter the new financial year with just a month more to go, with other tax related changes atthat will come into effect after the Budget 2020 proposals are cleared, there will be few items that will cost you more.
1. ACs: As we are soon to usher in the summer season and the industry is likely to see an increase in sales, there is also expected a price increase on the consumer durable product. The two factors to push up the cost is hike in customs duty of 5% on air conditioner compressors as well as higher logistics cost due to coronavirus scare in China that happens to be the main supplier.
2. Vehicles: Not just India, but there is global dependency on China for global OEMs and if the supply from China as is the case now due to logistics get impacted we may see consumers directly being impacted with a part of the logistics and other cost being transferred on to them. As it is we see the automobile industry in India going through a radical shift of switching BS VI engine norms.
3. Lottery: As per a notification, lotteries would now attract a GST of 28%. In accordance with the changed rules, for supply of lotteries, the central tax rate has been changed to 14% and a same percentage shall be levied by the states, taking the total GST implication on lotteries to 28%. The new higher rate shall come into effect from March 1.
4. Icecreams and frozen desserts: Owing to low milk supply as well as increased cost of import of skimmed milk powder which is one of the major ingredient of icecreams, prices of these products have already been hiked by some of the major players including Amul, Vadilal etc.
5. Beverages:There shall be hike of 6-14% on beverage offerings of Pepsi Co, Coco Cola in 600 ml PET bottles. For some of the companies such as Mountain Dew the hike shall be more than 14% to Rs. 40. Further bottles in 2 litre capacity shall also see a hike in price of Rs. 5 to Rs. 90 from Rs. 85 currently.For the 1.25 litre bottles, the cost has been raised by 8.3 percent to Rs 65.