What impact has the goods and services tax (GST), the new system of taxation that consolidates a multitude of Central and state taxes in one place, had on the urban household shopping budget?
In order to answer this question, we collated prices of goods that make up an average middle-class shopping cart.
The exercise was carried out thrice: once on 30th June before GST came into effect, on 2nd July after GST came into effect and lastly on 13th July, a week since the new GST regime.
We sourced prices from the Big Basket website for 71 items covering 18 categories of the Consumer Price Index (CPI), of which GST was applicable on 47 items, for the five main metros.
While the early net impact post-GST was a mixed bag, with some gains and losses, a week into the new GST regime, your household bill is set to get dearer by around 2%.
On the actual selling price, which factors in the discounts given by a retailer, the total cost of our basket of 47 items increased in all five cities, with Bengaluru recording the maximum increase (of 2.67%).