From telephone bills to gadgets, effect of GST explained
Soon after the GST bill was passed by the Parliament(Lok Sabha), the formation of GST council was on its way. Since Then the council has been formed and a load of light has been shed on the effect of the bill on different services. If you don’t know what GST is, it is basically a combined taxation system to replace all the different taxes imposed by the central and the state government of India. Goods and Service tax, or the GST will help ease out the taxation process, by combining all the different direct and indirect taxes to provide a streamlined method of taxation.
GST was rolled out in effect from 1st July. It has effected a lot of daily goods and commodities. The simple looking streamlined Goods and Service Tax is not that simple after-all. It has 5 slabs 0%,5%,12%,18% and 28%.
Worried how this complex to understand yet named simple taxation process will effect your daily gadgets and your life? We have complied a list for our readers to help them understand the effect of GST over their mobile bills and gadgets.
Effect of GST on different fields
With all the indirect taxes, the tax levied on smartphones was around 13.5%. After the new law, a tax of 12% will be levied on the smartphones and related devices. 1.5% seems a little relaxation on the buyers but there is a catch. Earlier the parts used to manufacture the devices were all levied different taxes. Now these parts have also come under 12% bracket. Which might potentially make it even or even increase the prices on some devices.
There is a huge discount for “Make in India” devices, and with many manufactures starting to seek India, as a alternative to China for production, the devices will go down. If you see a “Made in India” tag its price sure has gone down.
Computers, cameras, speakers etc.
The point and shoot’s, DSLR’s, speakers, headphones, monitors, televisions and other such accessories fall under 18% bracket now. Making them a bit more expensive than they were before. Laptops and Desktop PC’s also fall under this 18% category. This will however not effect them much. Just a marginal change.
All electronics such as washing machines, refrigerators, vacuum cleaners, shavers, trimmers, dishwashers, water heater, mixers, toasters, weighing machines will levy 28% tax, and the prices of most of the things will be in the favor of the customer.
Telephone, DTH bills
Currently Mobile and DTH bills levy a tax of around 14.5%. Under GST they will come under 18% bracket. Therefore the price of your cellphone bill, broadband bill, and favorite DTH service will increase drastically.
The app based transport services will levy a tax of 5% only making them cheaper. With exception of flight tickets having a tax of 12% making them more expensive than before.
Currently, its on a average of 35% with a margin of 5% depending on which state you are in. After GST, it will be 28% flat for all states. Essentially movie ticket prices will go down.