A two-tier tax rate structure of 5% and 18% was approved by the 56th GST Council. Union Finance Minister Nirmala Sitharaman, while announcing the new GST reforms, cited that, “We’ve reduced the slabs. There shall be only two slabs, and we are also addressing the issues of compensation cess”. From September 22, the revised rates shall come into force, carrying relief for a wide range of goods.
The majority of consumer electronics, like air conditioners and televisions, under the GST rate cut will shift from the old 28% slab down to 18% GST. Also, there is a rate reduction in the cost of dishwashers, refrigerators, and washing machines. Below, the rate cut in tax for distinct categories is specified.
Mobile Phones and Laptops After the GST Rate Cut
The tax slab for the mobile phone category is the same as decided by the government. The rate of tax on mobile phones at present is 18% which will subsequently remain the same.
Likewise, GST on laptops remains the same at 18%.
GST Rate Reduction on TVs
The government slashed GST rates on TVs, which has now been moved to an 18% tax slab from the existing 28%. Items mentioned below have been moved from 28% to 18% slab:
“Television sets (including LCD and LED television); Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receiver or sound or video recording or reproducing apparatus, set top box for television and Television set (including LCD and LED television).”
Effect on ACs, Dishwashers on GST Rate Cut
The government in the updated GST reforms has reduced the GST to 18% from 28% on air-conditioning machines and dishwashing machines. As per the model, there will be a discount on air conditioners of nearly Rs 1500 – Rs 2500.
