GST After-Effects: What’s getting dearer and merrier?
All you need to know about the Consumer Electronics Price Post GST Implementation
Brace for impact! India is getting a major economy change from July 1st as the government implements the new taxation system called GST (Goods and Service Tax). Whether you are ready or not, GST will change the Consumer Electronics scene in India. While business houses are sweating day and night to get ready for the day, consumers also need to note a couple of things.
In an attempt to streamline the tax levy country-wide, the government has introduced this tax reform. Currently, VAT is levied on the manufacturer, while CST (Central Service Tax) is charged when goods are move between states. Thus, resulting in a massive taxation on the finished products as they reach consumers. Removing this difference, GST introduces a taxation system that’s streamlined for the citizens of India.
While you might be reading all over the internet how it’s going to affect business houses, today we are showing you how it’s going to affect you as a consumer in India.
Read on to know what’s getting costly and what’s getting cheaper:
Smartphones will get merrier!
Smartphones are the oxygen of digital India! If India wants to continue its growth in the digital space, they need smart handsets to be on every citizen’s hand. GST is bringing that required change in the industry as smartphones would get cheaper from July 1st. There won’t be a large difference in price, but marginally speaking, consumers would have to shell out little less if they buy a smartphone after June 30th.
How are smartphones getting cheaper? How is this possible?
Well, it’s simple! Currently, the indirect taxes levied on smartphones manufacture comes around 13.5%. But with GST in play, it would come down to 12% as the government has put smartphones into 12% tax slab. Additionally, the components used to manufacture smartphones are also categorized in the same tax bracket. Supposedly, if the government decides to offer further incentives and relaxation to “Make in India” campaign partners, then expect the phones to get cheaper.
Computers, Cameras, and Peripherals will get dearer!
Mobiles are getting merrier, but computers are getting dearer. They would be levied with 18% tax, which would make them expensive. What else is getting costly? TVs, Monitors, Laptops and even DSLRs would also fall under new 18% GST tax slab. Thus, making them costlier to buy after June 30th.
Consumer Appliances takes a big hit!
While mobiles manufacturers are getting benefits from the GST, and select electronics categories to see a marginal increase in price. Consumer appliances like washing machines, Air conditioners, refrigerators, vacuum cleaners, dishwashers, toasters, and other heavy electronics appliances would be levied with a 28% tax. Therefore, get ready to see a huge price increase in home and kitchen appliances products.
Should you shop on these Pre-GST sales?
…..if you are looking to purchase smartphones! If you don’t have the interest to upgrade your smartphone, then you don’t have too. Unplanned sales such as Pre-GST sale usually makes consumers worried if they don’t purchase products in ongoing sale, then, they won’t find better deals in future. Let’s call this a Pressure Sale!
Such kind of sales makes consumers question whether they should invest money or not at the time. They are usually inclined to purchase a product under pressure, as in future it might get costlier. This is the technique many e-commerce websites use these days. Unless you have an urgent need of products, it’s not advised to purchase during a Pre-GST sale. This can be applied to cameras, computers, laptops, and peripherals, but not consumer electronics as they are getting a big price change.
Some Serious Talk!
The fact that economy largely relies on the purchasing power of citizens makes us wonder how much helpful GST going to prove to the Indian economy. Apart from the fact that it is going to streamline the taxation process, it is widely believed it would decrease corruption in the country, as it would get difficult to hide black money from the government.
So, these are the GST After-Effects.
What do you think of the GST implementation in India? Do you believe it would help India grow forward? Let’s discuss in the comments section below.