GST rate reduced: Prior to the introduction of GST, extensive deliberations were done by the government around the most critical aspect, viz. GST rates. The desire has always been to have a single rate taxation regime with an intent to simplify the tax regime bereft of legacy issues around classification and on tax rates. But this could not be possible.
With the introduction of GST, the purchase of electronics items has become cheaper as per the Ministry of finance tweet. The government has brought a smile to the common people by slashing GST on electronics, goods etc., such as washing machines, mobile phones, refrigerators, home appliances, UPS and more. Earlier, consumers were charged up to 31.3 percent GST on these items.
Here is a list of all the items that has become cheaper due to introduction of GST:
TV cheaper to buy
The government has slashed GST from 31.3 percent to 18 percent on TVs with a screen size of 27 inches or less during the last 6 years. However, most consumers not get the benefit of this as most of the smart TVs have a screen size of 32 inches or more, and they still have a GST of 31.3 percent.
So, if you want a smaller TV, you can save some money. But if you want a bigger TV, you have to pay the same GST as before.
Read Also: E-invoicing under GST for turnover above Rs 1.5 crore may be from next year
Mobile phones became cheaper
The government has lowered GST on mobile phones, making them cheaper for customers. Earlier, a consumer needs to pay 31.3 percent GST while buying a mobile phone. This has now been GST rate reduced to 12 percent, which allow mobile phone companies to cut the price of their phones.
Home appliances affordable
Home appliances like refrigerators and washing machines, as well as fans, coolers, geysers, etc., have also become cheaper. The GST on these home appliances has been slashed from 31.3 percent to 18 percent over the few years, which means a price reduction of up to 12 percent.
Other household appliances such as mixers, juicers, vacuum cleaners, LEDs, vacuum flasks and vacuum utensils have also got a GST cut. The GST on mixers, juicers, etc. has gone down from 31.3 percent to 18 percent while the GST on LEDs has gone down from 15 percent to 12 percent.
Read Also: 10 GST changes suggested to CBIC Members by tax associations
List of items where GST rate reduced
Meanwhile, the government GST collection in the month of May 2023 was Rs 1,57,090 crore, which was 12% higher than the GST collection in the same month last year. The GST collection for May 2023 included ₹28,411 crore collected towards CGST, Rs 35,828 crore towards SGST, and Rs 81,363 crore towards IGST (including Rs 41,772 crore collected on import of goods).
The state-wise break-up of GST collections in May 2023 showed that Maharashtra posted the highest GST collection in absolute terms at Rs 23,536 crore. Other states like Karnataka, Gujarat, Tamil Nadu, Haryana and Uttar Pradesh also showed high GST collections. The GST collections for May 2023 were attributed to the improved economic activity and the increased compliance by taxpayer.
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