GST Rates impacts

How GST Rates impacts on items prices

The 28th GST Council meeting which held in New Delhi has concluded with decision to cut rates on several general-used goods like TV, washing machines and refrigerators.

The Council also decided to put sanitary napkins, small handicraft items and rakhis under the exemption. Addressing the post-meeting presser, Interim Finance Minister Piyush Goyal said the new tax rates will be applicable from July 27.

The GST Council had announced reduction in GST tax rates on items like small screen TVs, fridges and washing machines to 18 per cent, previously GST rate 28%. The new rate will take effect Today.

GST Rates impacts

“With the revision of GST rate on refrigerators and washing machines, there will be a reduction of price to the tune of 7-8 per cent for the end consumer. Godrej will pass on the entire benefit of GST reduction to the consumers,”  Added by Godrej Appliances Business Head and Executive Vice President Kamal Nandi.

“The revision of GST rate from 28 per cent to 18 per cent will provide relief to the appliances industry” told by  Nandi.

“The revision will make refrigerators and washing machines more affordable which will accelerate the penetration of these appliances across India. This is turn will lead to a spur in demand which will lead to increase in production and hence have a positive impact on the GDP,” he added.

Agreeing with Nandi, LG India Business Head Vijay Babu said, “As a market leader LG confirms that it will pass on 100 per cent GST reduction benefit to the consumers with effect from July 27. The price reduction for washing machine, refrigerators and vacuum cleaners will be in the range of 7-8 per cent”.

Manish Sharma, president and CEO, Panasonic India and South Asia and President, CEAMA said the tax (GST) cut will provide a new impetus for growth especially before the upcoming festive season.

“The goods to benefit the most will be washing machines and refrigerators, where we expect growth to pick up substantially. The reduced taxes in television sets of up to 26 inches will ensure increased penetration and affordability in smaller parts of the country. We plan to pass on the complete benefits translating to around 7-8 per cent,” he added.

Here are the List of Items whose Tax Rate Changes

I.  Exempted Items from GST

– Commemorative coins circulated by the RBI or government

– Deities made of stone, marble or wood

– Fortified milk

– Raakhis, without any precious metals

– Raw material used in brooms

– Saal leaves

– Sanitary pads

II. From 12% to 5% reduction

– Fertiliser grade phosphoric acid

– Handloom dari

III. From 28% to 18% reduction

– Cosmetics

– Electric smoothing irons

– Food grinders, mixers

– Hand dryers

– Ice cream freezer

– Lithium-ion batteries

– Paint, Varnishes

– Perfumes, Scent

– Refrigerators

– Shavers, hair clippers

– Storage water heaters

– Vaccum cleaners

– Water cooler

IV. GST reduced from 18% to 12%

– Aluminium art ware

– Art ware of brass,copper/copperalloys, electroplated with nickel/silver

– Art ware of cork

– Bamboo flooring

– Glass art ware (including pot, jars, cask, vase)

– Glass statues (other than those of crystal)

– Handbags including pouches and purches, jewellery box

– Handcrafted lamps

– Ornamental framed mirrors

– Stone art ware, stone inlay work

– Wooden frames for painting, photographs, mirrors etc

V.  GST slashed to 5 per cent

– Chenille fabrics

– Ethanol

– Footwear costing up to Rs 1000

– Handloom dari

– Handmade carpets and other handmade textile floor coverings

– Handmade lace

– Hand-made braids

– Hand-woven tapestries

– Knitted cap having retail sale value not exceeding Rs 1000

– Phosphoric acid (fertilizer grade only)

– Solid bio furl fabrics

– Toran

VI. Other key changes

– GST on ethanol sold to oil companies for blending with petrol and diesel reduced to 5 per cent from 18 per cent earlier.

– GST on imported urea reduced to 5 per cent.

– GST on e-books reduced to 5 per cent from 18 per cent.

 

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