As what can be termed good news for us, GST on smartphones and more electronic goods has been slashed in India, thanks to the latest update by the Union Finance Ministry. The revised taxes on various categories can finally make things more affordable. But, will it? Here’s some clarity on this!
GST on Smartphones and More Decreased!
As part of celebrating six years of GST (Goods and Services Tax) in India, the Finance Ministry has drastically reduced the GST on smartphones, TVs, and various consumer electronics. A 12% tax will now be levied on mobile phones, which can lead to a reduction in their prices and happy news for us.
TVs (up to 27 inches), refrigerators, and washing machines will now include an 18% GST. Home appliances like mixers, juicers, vacuum cleaners, geysers, and more have also seen a reduction.
But what makes this new reform utterly confusing, is the ‘then and now‘ taxes shared above. To clear the air, the reduced GST on phones is nothing too surprising or drastic. When GST came into being back in 2017, a 12% tax was fixed for phones, which got increased to 18% in 2020 and has been in effect up until now. During the Union Budget 2023, this again got back to 12% and this is what we will be paying for future purchases.
The really high ‘31.3%’ number is the tax levied before GST was implemented. So, while a reduction has been announced, it isn’t as major has been portrayed!
From now on, if you intend to buy a smartphone, you will be paying less tax on it and can save money. Although, these changes will most likely come into effect for the new upcoming phones later in 2023 or 2024.
This can also mean that the upcoming iPhone 15 series might not burn a hole in our pockets, considering a possible price hike is in tow. This is good news as iPhones have always been way more expensive in India as compared to the US and other global markets due to the value of the Indian Rupee against the US dollar.
That said, it remains to be seen how this major change affects us directly. Will we see clear price cuts on smartphones from various OEMS? Will there be any hidden costs? All this is still unanswered and we will have to wait. Until then, do share your thoughts on the new tax reform and whether or not this will be a sigh of relief in the comments below.