GST (Goods and Services Tax) i.e. Goods and Services Tax, was implemented in India in 2017. Its purpose was to consolidate different taxes in the country and simplify the tax system. After the implementation of the GST, its rates have been changed several times, and every change directly affects the general public, especially housewives. The housewife i.e. the member of the household who manages the expenses, budget and daily needs of the house, directly experiences changes in GST rates. In this article, we will know in detail what the reduction in GST rates affects the life of a housewife.
1. Impact on everyday domestic needs
The largest part of a housewife’s life goes to meet everyday domestic needs. This includes flour, pulses, rice, oil, spices, milk, vegetables, fruits, cleanliness products and other daily use items. When the rate of GST is low on these items, their prices directly decrease. For example, if the GST decreases from 5% to 2.5% on a branded flour, then the total price of 10 kg flour saves a few rupees. The effect of this savings is also visible in small expenses. The housewife gets many opportunities every month when she can balance her home budget by spending less on daily needs. Thus, the decrease in GST rates makes the purchase of everyday items cheaper and brings economic relief in the life of the housewife.
2. Improvement in budget and financial management
The main task of a housewife is to manage the budget of the house. She decides how much will be spent in the month. GST reduction takes less money for daily expenditure, which gives relief in the total budget. For example, if the monthly grocery expenditure of a family is Rs 15,000 and saves up to 5% due to a decrease in GST, then the housewife can save around Rs 750 every month. This savings can be used in small expenses such as children’s education, health, home appliances or other requirements. Thus, the decrease in GST rates not only reduces direct expenditure but also gives the housewife more flexibility in her financial management.
3. Impact on expensive home appliances and services
Nowadays, most homes procure electronics, furniture, cleaning equipment and other home appliances. Also, payment has to be made for services such as cleanliness, care and repair of the house. If GST decreases on these items and services, their prices become cheaper. For example, if the GST on home appliances such as mixers, washing machines or fridge decreases to 12% to 5%, then the housewife gets financial facility in making big purchases. In addition, GST reduction on home -related services can easily take advantage of these services, such as domestic cleaning, installation or home delivery services. Thus, the decrease in GST rates helps the housewife to make life simple and convenient.
4. Impact on online shopping and digital transactions
Nowadays housewives also use online shopping. Grocery, clothes, home appliances and other items are available on the e-commerce platform. The decrease in GST also reduces the prices of online products. This means that the housewife can now buy goods at a low price sitting at home. Also, due to increasing the circulation of digital payments, they save both time and travel. This increases convenience and comfort in the life of the housewife.
5. Impact on inflation and standard of living
Inflation, ie the increase in prices of everyday goods and services, directly affects the life of the housewife. When the GST rates are low, the decrease in the price of goods helps in control of inflation. It directly improves the standard of living of the housewife. The housewife does not have difficulty in maintaining the same standard of living due to low prices. The purchase of essential commodities for the family can be easily done.
6. Mental and social influence
Low prices and increased savings also affect mentally. The housewife feels less financial pressure, and she can make a better plan for the family. Also, it has its effect from social point of view. The ability to spend less helps the housewife to make her role more effective in the house and society.
Practical benefits through example
Suppose the monthly expenses of a housewife include the following:
Goods/Service Monthly Expenditure (Rupees) Savings (Rupees) New Price (Rupees)
Flour and Dal 2000 50 1950
Oil and Spices 1000 25 975
Milk and dairy products 1500 37.5 1462.5
Domestic cleaning product 800 20 780
Electronic Equipment (Fare/Fare Services) 2000 100 1900
