How much will the household expenses be reduced every month after the GST cut? Know the calculation according to ghee, oil, flour, and salt

Nirmala Sitharaman said that this change is part of 'GST 2.0'. This step has been taken to provide relief to the common man, farmers, the middle class, and MSMEs.

Finance Minister Nirmala Sitharaman announced the decisions of the 56th meeting of the GST Council on Wednesday (September 03). During this, major changes were announced in the GST rates. Let us tell you that this change is expected to give a lot of relief to the common people, because GST has been cut on all the things of daily use like ghee, oil and flour etc. Let us know how much your household expenses will be reduced after the GST cut?

The Finance Minister said this

Nirmala Sitharaman said that this change is part of 'GST 2.0', which is in line with the promise made by Prime Minister Narendra Modi in his Independence Day address. He said that this step has been taken to give relief to the common man, farmers, middle class and MSME. The focus of the meeting was on rationalization of rates, where 99% of the items in the 12% slab were shifted to 5%. Whereas, 90% of the items in the 28% slab were shifted to 18%. This will reduce the tax on items of daily use, which will help in controlling inflation.

Which item will be cheaper by how much?

The biggest benefit of GST reduction will be on the household budget. We calculate on the basis of new rates of basic items like ghee, oil, flour and salt. Taking the monthly budget of a family of four as the basis, we see how much will be saved.

Ghee: Earlier 12% GST was levied on ghee, which has now been reduced to 5%. If the base price of one kg of ghee in the market is Rs 500, then the GST at the old rate was Rs 60. After this, the total price would be Rs 560. GST at the new rate will be Rs 25, after which the price will be only Rs 525. If a family uses 2 kg of ghee every month, then there will be a saving of Rs 70.

Oil: Edible oil was already mostly in the 5% slab, but some packaged varieties were charged 12% GST. Now all have been shifted to 5%. If the base price of 1 liter oil is Rs 150, then at the old 12% rate, GST was Rs 18. At the new 5% rate, GST will be Rs 7.5. According to this, there will be a saving of Rs 52.5 on 5 liters of oil.

Flour: There was no GST on unbranded flour earlier, but 5 percent GST was levied on branded flour. Now branded packaged flour has also been shifted to zero percent GST. If the price of flour is Rs 40 per kg, then earlier 20 rupees extra had to be paid as per 5 percent GST.

Salt: Salt was already at 0% and there has been no change in it. In such a situation, its prices will remain the same as before. Apart from this, there will be no GST on butter, cheese, roti, pizza, milk, roti and paratha etc.