Experts say that the monthly expenses of a middle class family will decrease every month. This will leave them with more money than before. If a middle class family lives in Delhi and their monthly income is Rs 50,000-60,000 and they have two children in their family, then their monthly expenses will reduce significantly.
The GST Council has taken a big decision to make thousands of things cheaper. This decision will come into effect from September 22. This will reduce the tax on many things. In fact, the GST Council has approved the proposal of only two slabs instead of four slabs of GST. This will reduce the tax on many things. This will bring a big reduction in their prices. This is a relief news for the middle class, which has been troubled by rising inflation for a long time. The question is how much will be the total savings every month due to the reduction in GST?
Things used daily will become cheaper
Experts say that the monthly expenses of the middle class family will decrease every month. This will save more money in their hands than before. If a middle class family lives in Delhi and the monthly income is Rs 50,000-60,000 and there are two children in their family, then their monthly expenses will be reduced significantly. In this example, it has been assumed that the person lives in a rented house. There will be a good reduction in monthly expenses because many of the things on which GST is going to be reduced are going to be used daily.
Kitchen budget will decrease
Now the GST rate on things like paneer, ghee, namkeen has decreased to 5%. If a family spends up to Rs 5,000 on these things every month, then due to 5% GST, it will pay only Rs 250 tax. Till now, it used to pay Rs 500 tax on these things. Till now, 12% GST was levied on clothes worth Rs 2,500. Now it will decrease to just 5%. This means that earlier there was a tax of Rs 240, whereas now only Rs 100 tax will be levied on it.
There will be savings on insurance premium too
Not only this, now less tax will have to be paid on medicines and personal care products too. Earlier, 18% GST was levied on shampoo, toothpaste and hair oil. After the change in rates, only 5% tax will be levied on them. This means that if a family spends Rs 1,500 every month on these things, then instead of the earlier tax of Rs 270, it will have to pay only Rs 75 as tax. The GST Council has abolished GST on the premium of life insurance and health policy. Now, instead of 18%, there will be zero tax. This means that if a family spends Rs 2000 every month on the premium of health policy, then due to zero percent tax, it will save Rs 360 every month.
There will be less expenditure on children’s education
GST will not be levied on things like notebooks, pencils used in children’s education. Due to this, if a family used to spend Rs 1000 on these things earlier, then now its savings will be Rs 120. In this way, the total savings of a middle class family can be up to Rs 13,980. This is just an example. The actual savings will depend on the spending pattern of the family. But it is certain that the middle class troubled by inflation will get a big relief due to the reduction in GST.
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