The GST Council on Saturday reduced tax rates on several items in the 28 per cent tax slab and has now included them in the 18 per cent tax bracket. The reduction in GST rates will mean that several consumer appliances like smaller television sets, power banks, etc are set to get cheaper.
The new GST rates will come into effect from July 27. Rates of television sets (under 25-inches), lithium-ion batteries, which are used in mobile phones and battery back-up packs, washing machines, fridge, and other household electronics are all set to get cheaper.
Here’s a look at electronic products which will get cheaper when the new GST slab comes into force.
Small screen televisions
All television sets under 25-inches are now in the 18 per cent price bracket, which means we can soon expect a drop in their prices. However, all television sets above this size, remain in the 28 per cent GST tab slab. This includes, recent popular launches like Xiaomi’s Mi LED TV 33-inches, 43-inches, etc, which will continue to be taxed at 28 per cent.
“The cut on the GST in the television segment is of particular interest to us as we are a market leader and have a good acceptability in the 22 and 24 inch size segment. The rate cut will benefit consumers in Tier 3 and 4 towns to a great extent and make the televisions more affordable for them,” Nidhi Markanday, Director, Intex Technologies said in a press statement.
Lithium ion batteries
Lithium ion batteries will also be taxed at 18 per cent compared to the 28 per cent from earlier. Again the move has been welcomed by manufacturers, who will be able to pass on benefits to consumers. They are used in mobiles, tablets, and power banks, etc.
“The reduction of GST slab on lithium-ion batteries used in mobile phones from 28% to 18% will certainly prove as a good boost to the mobile phone industry as it would improve the penetration and affordability of the product in smaller towns across the country. This rationalization of the taxation is a growth booster and we welcome the move by the government,” Sudhir Kumar, CEO, Tambo Mobile said in a press statement.
Read more: GST rates revised: Here is a full list
Washing machines, refrigerators, vacuum cleaners, water heaters, hair dryers, etc
The list of consumer appliances also includes washing machines, refrigerators, vacuum cleaners, water heaters, hair dryers. These will now be taxed at 18 per cent, compared to the earlier number of 28 per cent. Other electrical products in the list are: food grinders, mixers, hand dryers, smoothing irons, etc. Overall for those who were planning to purchase any of these products, post July 27, would be a good time, since they will get discounts.
E-Books at 5 per cent
E-Books have also seen their tax slab being lowered from 18 per cent to 5 per cent. This should mean good news for those who like to purchase a lot of e-books, as the reduced GST will mean lower prices from July 27.
“As far as electrical appliances segment is concerned, the announcement has come at the right time as this is likely to spur consumer spending during the coming festive season positively impacting demand in Q3 and Q4. This should spur good business in the coming months on the back of a decent monsoon, recent loan waivers and 100% rural electrification, said Saurabh Baishakhia, Sr. VP and Business Head, Appliances, Orient Electric Limited.