What is GST and how it will affect Pricing of Electronics

Here’s a look at electronic products that are set to get cheaper, and ones that will be dearer after GST is implemented.

The Goods and Services Tax or GST is scheduled to be launched on the 1st of July, and it is set to revolutionize the way we do our taxes.

GST impact on consumer electronics

Smartphones

With all the indirect taxes, a tax of around 13.5 percent is currently levied on smartphones, but with GST, it will come down to 12 percent. This will make smartphones a bit cheaper than they are right now. Don’t expect a drastic fall, but some marginal fall will be there. The components used for making smartphones are also categorized in the 12 percent price bracket.
If government decides to give further incentives and relaxation for ‘Make in India’ products, the cost can come down a bit more. So, if they are made in India, they are likely to get even cheaper. The GST rollout is also likely to cut down on unfair pricing practices by online retailers compared to brick-and-mortar stores. But as GST will bring standardized taxation, it could diminish the price difference between online and offline. Shah further added saying, “With standardized taxation in form of GST, sellers selling cheaper on online marketplaces by sometimes employing unfair pricing practices leveraging the current differential state tax savings, will be eventually put to rest.

Cameras, speakers, monitors, TVs    

The likes of point-and-shoot or a DSLR camera, TV, speakers, computers and monitors will now be levied a tax of 18 percent, making them a bit more expensive. Even laptops fall under the same slab, and their prices are also set to go up marginally.

Electronics appliances

All electronics appliances, such as washing machines, refrigerators, vacuum cleaners, shavers, trimmers, dishwashers, water heater, mixers, toasters, weighing machines are categorized under 28 percent GST slab, and their prices are set to become dearer.
"So weather to buy electronics before or after implementation of GST can be a hit or miss"

 

 

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