Goods and Service Tax (GST) Council has slashed tax rates from 28% to 18% on over 85 consumer durables. Several white goods such as washing machines, televisions, refrigerator, kitchen appliances and more will be available at a lower price. The reduced prices come into effect from 27th July 2018. This is sure to delight consumers as the prices are likely to reach a two-year low price, subsequently increasing sales of businesses. So, we find more production of such appliances and a positive impact on the Indian GDP. It could be an opportunity for small and medium enterprises to grow big.
In this league, major white goods makers such as Samsung, Godrej, LG, Whirlpool, etc. will be reducing prices of their products to increase penetration of their products in the market. Well, there are some have kept the dealer price intact. Also, there is a GST rate cut on footwears where the ones costing between Rs1000 to Rs500 will have a tax of just 5%.
Below is a detailed list of items with GST rate cuts from 28 % to 18 %
- Washing machines
- Vacuum cleaners
- Domestic electrical appliances such as food grinders and mixers & food or vegetable juice extractor, shaver, hair clippers etc.
- Televisions up to the size of 68 cm
- Refrigerators, freezers and other refrigerating or freezing equipment including water coolers, milk coolers, refrigerating equipment for leather industry, ice cream freezer etc.
- Storage water heaters and immersion heaters, hair dryers, hand dryers, electric smoothing irons etc.
- Lithium-ion batteries
- Paints and varnishes (including enamels and lacquers), Glaziers’ putty, grafting putty.
- Special purpose motor vehicles. For instance, crane lorries, fire fighting vehicle, concrete mixer lorries, spraying lorries.
- Works trucks (self-propelled, not fitted with lifting or handling equipment) of the type used in factories, warehouses, dock areas or airports for short transport of goods. Trailers and semi-trailers
- Miscellaneous articles such as scent sprays and similar toilet sprays, powder-puffs and pads for the application of cosmetics or toilet preparations
Adding to the list of good news, Union Minister, Arun Jaitley, announced that cement, air conditioners and bigger screen TVs will also have GST rate cuts with the increased tax revenues.