Consumers can expect a big drop in prices of some major household gadgets and appliances as the government has announced cuts in GST rates.
From September 22, several electronic items that were earlier taxed at the highest slab of 28% will now attract only 18% GST.
Apart from electronics, the recent GST reform also reduces taxes on a wide range of items, including essential goods, healthcare services, education, and farm machinery.
Consumers can expect a big drop in prices of some major gadgets and appliances as the government has announced cuts in Goods and Services Tax (GST) rates. In one of the most important reforms since GST was first introduced, the government has simplified the tax system by bringing most items under just two slabs: 5% and 18%.
SurveyFrom September 22, several electronic items that were earlier taxed at the highest slab of 28% will now fall under the 18% GST slab. This change is expected to reduce the prices of these appliances.
The products that will see a tax cut include:
- Air Conditioners
- Televisions above 32 inches (including LED and LCD models)
- Monitors and Projectors
- Dish Washing Machines
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“I think the key takeaway for us, it is coming at a very important time especially ahead of the festive season. If you look at some of the categories, festive season alone, the period of four to five weeks, captures almost one-fifth of the annual sales,” said Tarun Pathak, Research Director at Counterpoint Research. “For consumers, this is coming at a time when there was also a tax reduction as well, so double positive in that sense.”
He added, “This should provide good relief for the industry, and we expect a healthy festive season. If not double-digit, at least in value terms, it should reach somewhere closer to 9 to 10% growth, at least from the electronics perspective.”
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Apart from electronics, the recent GST reform also reduces taxes on a wide range of items, including essential goods, healthcare services, education, and farm machinery.
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Ayushi Jain
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