A new tax slab has been implemented in India from today as GST 2.0. In the GST Council meeting held on 3 September, it was announced to implement two rates of GST 5% and 18%. The rates of 12% and 28% were removed from the GST list. 40% tax was added in their place as a third rate, which will be levied on the items of luxury. Also, many everyday items were taxed.
From today, new rates of GST will be implemented across the country. This will have the most impact on the electronic sector. Air conditioner, refrigerator, washing machine, dishwasher and large -screen TVs, which were earlier taxed at 28%, will now come under the tax of 18% tax. In such a situation, all these things will now become cheap, so that the middle class family of the country will also be able to buy them easily.
Talking about mobile phones and laptops, they will be charged 18% GST as before. In such a situation, people waiting for mobile phones and laptops to become cheap will have to depend on seasonal offers.
GST’s new slab
5% – daily items
18% – standard goods like domestic decoration and electronics
40% – luxury items
Electronic and household items
The price of air conditioner and dishwasher is expected to be reduced to Rs 3,500-4,500 per unit.
The prices of refrigerator and washing machines are expected to decrease by 8-9%.
TV prices with large screen (more than 32 inches) are also expected to fall drastically.
Mobile phone and laptop
The reduction in GST rates will not affect the prices of mobile phones and laptops. These items will remain within the scope of 18% tax as before. The reason for this is that companies making mobile and laptops are already taking advantage of the production linked incentive (PLI) scheme. Also, after adjusting the import duty, they were kept in 18% tax slab. Now reducing tax on them can prove to be a loss deal.