Soon after the Goods and Services Tax (GST) was approved in the Lok Sabha, the GST Council has now cleared framework rules to shed more light on finer details related to the rates that will be applicable to different goods and services. GST being a new indirect tax reform will bring drastic and huge changes in our economy. Under GST, India would become a common marketplace & drive uniformity and also reduce compliance cost. It will lead to cost reduction of many products and services.
GST will prove to be very much beneficial for electronics manufacturer as due to the introduction of GST the ultimate cost of warehouses and logistics will get reduced and the manufacturer will pass on this cost reduction benefit to the consumers and the ultimate consumers of electronic products will be benefited.
GST impact on consumer electronics
Previously, a tax of around 13.5% was levied on smartphones, but with GST, it has come down to 12%. This will make smartphones a bit cheaper. The components used for making smartphones are also categorized in the 12% price bracket.
Cameras, speakers, monitors, TVs
Computers, printers, printed circuits, camera, speakers and monitors, Electrical Transformer, CCTV, Optical Fiber will come down to 18%.
Your phone calls may become costlier. Phone bills will likely attract an 18% GST rate compared to the previous 15%. 😐