While talking to ET, Finance Minister Arun Jaitley spoke on whether there would be dip in sales, He said "I do not visualise that situation at all. For example, if you take the entire basket of goods, there is not a single good out of the 1,211 where we have increased taxes above the present level. Either that level has been maintained or the cascading effect has been removed or the tax on goods has been substantially removed. So whatever you were giving 31% with cascading effect is now to 8%. Many 28% items have been transferred to 18% and this is all subject to any input credit also, which earlier you were not getting."
Also he said that in case of services, when you buy an apartment in a building there will be GST in a work contract for buyer of 12 percent which would be subject to the input credit. So the credits paid by the way of purchase of steel, cement, sanitary ware and these are high tax items, you would get input credit. So the existing rate will lower eventually.
Apart from this he also mentioned that small cars were taxed 31% and 29%, With GST it will be 28 plus 3% and 28 plus 15. So basically it is maintained so whether the consumer buys before or after 1st July it will make no difference.
So basically government has ensured to stabilize the taxation and at the same time moderated the taxes wherever was high.
Now let's see what are the taxes included in GST
Indirect taxes that will included under GST
VAT/ Sales tax
Entertainment tax (except if levied by local bodies)
Taxes on lottery, betting and gambling
Entry tax not on not instead of Octroi
Central excise duty
The excise duty levied under The Medical and Toiletries Preparation Act
Additional excise duty
Additional customs duty, commonly known as countervailing duty (CVD)
Special additional duty of customs (SAD)
Some other taxes that may or may not be included in GST due to the agreement between the central and state government of various reasons.
Entertainment tax (which are levied by local bodies)
Other entry taxes and Octroi
Basic customs duty and safeguard duties on import of goods into India