The Goods and Services Tax (GST) Council has approved a two-tier rate structure of 5% and 18%. Announcing the new GST reforms, union finance minister Nirmala Sitharaman said “We’ve reduced the slabs. There shall be only two slabs, and we are also addressing the issues of compensation cess”. The revised rates will take effect from September 22, bringing relief across a wide range of goods. Under the GST rate cut, most consumer electronics—such as air conditioners and televisions—will shift from the old 28% slab down to 18% GST. Similarly, the price of dishwashers, refrigerators, and washing machines will also see a price cut. Here’s a close look at revised tax rates across different categories
GST rate cut: Impact on mobile phones and laptops
For the mobile phone category, the government has decided to keep the default tax slab. Currently, a GST of 18% is charged on mobile phones which will continue to remain the same. This means that there will be no reduction in the price of smartphones.
Similarly, GST on laptops remain unchanged at 18%.
GST rate cut: Impact on TVs
The government has also slashed GST rates on TVs which has now been moved to 18% tax slab from the current 28%. As per the official press release, following items have been moved from 285 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).”
GST rate cut: Impact on ACs, dishwashers
Under the latest GST reforms, the government has reduced GST from 28% to 18% on air-conditioning machines and dishwashing machines. According to reports, air conditioners may become cheaper by around Rs 1,500 to Rs 2,500, depending on the model.
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