The GST Council in its 28th meeting has pruned the 28% slab by cutting tax rates on 191 goods, leaving just 35 items, including AC, digital camera, video recorders, and automobiles, in the highest tax bracket. GST for 15 items including Televisions up to the size of 68 cm (27-inches), Lithium-ion batteries used in power banks and electric vehicles, vacuum cleaners, washing machine, video games are now down from 28% to 18%. The council has brought down GST of Fuel Cell Vehicle from 28% to 12%, giving a boost for alternative fuels. Further, Compensation cess shall also be exempted on fuel cell vehicle, said the council.
These new GST rates will be implemented from July 27. We can expect announcements from the companies regarding price cuts of these products soon.
Welcoming the new move, Nidhi Markanday, Director, Intex Technologies, said:
The move by the Government to cut GST in product segments like Televisions (below 68 cm), Washing Machines, Refrigerators and even Powerbanks from 28% to 18% is indeed a very welcome and much awaited move.
The move by the Government to cut GST in product segments like Televisions (below 68 cm), Washing Machines, Refrigerators and even Powerbanks from 28% to 18% is indeed a very welcome and much awaited move.
The rate cut will benefit consumer durable companies like us to pass on the benefit to the consumers for the upcoming festive season. This move brings cheer to both consumers and players like us. We will definitely re-work the pricing and announce the price drop it well in time for the festive season.
The cut of 10% in the GST in the television segment is of particular interest to us as we are a market leader and have a good acceptability in the 22 and 24 inch size segment. The rate cut will benefit consumers in Tier 3 and 4 towns to a great extent and make the televisions more affordable for them.
The rate cut for Powerbanks will also definitely increase its demand as it has become a necessity today and will particularly benefit us as we are a leader in this product category.