This will be a good news for Indian electronic and gadget market. In its 28th meeting, GST Council of India has pruned the 28 percent slab by cutting tax rates on 191 goods. However, 35 items are not included in the GST rate cut including AC, digital camera, video recorders, and automobiles.
GST for 15 items will see a tax cut from 28 percent to 18 percent, including televisions up to the size of 68 cm (27-inches), Lithium-ion batteries used in power banks and electric vehicles, vacuum cleaners, washing machine and video games.
The council has also cut down the GST on Fuel Cell Vehicle from 28 percent to 18 percent. So if you are looking forward to purchasing an electric vehicle then this is the best time for your purchase. Further, Compensation cess shall also be exempted on fuel cell vehicle, said the council.
It seems government is more focusing on the electric vehicles, for promoting alternative fuels.
The changes in the GST rates will be implemented from July 27, so if you are planning to buy something within the above-mentioned categories then take a pause and wait till July 27. It is safe to say that we can expect announcements from the companies regarding price cuts of these products soon.
Welcoming the new move, Nidhi Markanday, Director, Intex Technologies, said, "The move by the Government to cut GST in product segments like Televisions (below 68 cm), Washing Machines, Refrigerators and even Powerbanks from 28% to 18% is indeed a very welcome and much-awaited move."
Here is the list of GST rates reduction on 28% items
- Paints and varnishes (including enamels and lacquers)
- Glaziers' putty, grafting putty, resin cement
- Refrigerators, freezers and other refrigerating or freezing equipment including a water cooler, milk coolers, refrigerating equipment for leather industry, ice cream freezer etc.
- Washing machines.
- Lithium-ion batteries
- Vacuum cleaners
- Domestic electrical appliances such as food grinders and mixers & food or vegetable juice extractor, shaver, hair clippers etc
- Storage water heaters and immersion heaters, hair dryers, hand dryers, electric smoothing irons etc
- Televisions up to the size of 68 cm
- Special purpose motor vehicles. e.g., crane lorries, fire fighting vehicle, concrete mixer lorries, spraying lorries
- Works trucks [self-propelled, not fitted with lifting or handling equipment] of the type used in factories, warehouses, dock areas or airports for short transport of goods.
- Trailers and semi-trailers.
- Miscellaneous articles such as scent sprays and similar toilet sprays, powder-puffs and pads for the application of cosmetics or toilet preparations.