GST was rolled out in July 2017 as an amalgamation of 17 central and state tax taxes
An analysis on GST (Goods and Services Tax) done by the Finance Ministry of India, suggests that tax on common consumer appliances has been slashed from 31 per cent to 18 per cent, post GST roll out. The GST was rolled out in India during July, last year.
Coincidentally, PM Modi gave a speech yesterday where in he mentioned that 99 per cent items will attract 18 per cent or less tax in the near future. He said, “We firmly believe that GST must be as simple as possible and we are also working constantly in that direction.”
GST brought down tax rates on air conditioners
The analysis also shows that tax rates levied on luxury consumer durables like ACs, also came down after the implementation of GST. GST has five tax slabs namely – 0, 5, 12, 18 and 28 per cent. Government has placed some white goods, apart from luxury and sin items, in the highest tax rate GST slabs.
It is to be noted here that GST was rolled out as an amalgamation of 17 central and state levies. It also includes sales tax and excise duties charged on white goods and consumer electronics and appliances.
The analysis further shows that GST charged on washing machines, mixer juicers, coolers, fans and TVs up to 27 inches came down to 18 per cent from 31.3 per cent, post GST implementation. GST on mobile phones, as shown by the same analysis also came down to 12 per cent from 18-25 per cent to 12 per cent after GST implementation.
Old tax vs GST system
The central government, as a part of the old tax system, used to levy excise duty on every good that was produced in the factory. State governments also charged VAT on top of excise duties. The new system, on the other hand, levies GST when the final consumer buys a product or service.