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https://www.desidime.com/news/has-gst-reduced-on-mobile-phones-gadgets-all-you-need-to-know?page=1#post_9380279
Hope devices will be cheaper
Has GST Reduced on Mobile Phones & Gadgets? All You Need to Know
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Has GST Reduced on Mobile Phones & Gadgets? All You Need to Know
Lets quickly have a look at the list of GST Rates on Electronics Items from July 1 as well as why the comparison GST chart posted by PIB seems to have been causing confusion amount consumers.
by Vrushali.S
Updated: 03 Jul, 2023, 11:58 IST
8
12019
The Government of India is celebrating 6 years of GST & has announced a comparison chart of GST rates. GST “reduced” on electronic items like mobile phones, washing machines, juicers, mixers, TV, refrigerators & other gadgets or has it really? Press Information Bureau of India (PIB India) announced on July 1 the “new” GST rates on smartphones, TV, refrigerators & other electronic gadgets.
Let's quickly have a look at the list of GST Rates on Electronics Items from July 1 as well as why the comparison GST chart posted by PIB seems to have been causing confusion amount consumers.
GST Reduced on Electronics Items
In April 2023, GST revenue touched an all-time high of 1.87 Lakh crore. The government of India on celebrating 6 years of GST on July 1st announced to bring relief to households in India by slashing the GST rates on electronic items such as mobile phones, TV, refrigerators, geyser, fan, coolers & others.
The new GST rates on electronic items will be applicable from July 1, 2023. But wait, these GST rates aren’t really new.
At the time of implementation, the government set a 12% GST on mobile phones which again got hiked to 18% in 2020 by the 39th GST Council Meeting and got reduced to 12% in the Budget 2023 again. While it was a significant drop, consumers are still yet to see the benefits of it.
The GST on Mobile Phones right now remains unchanged, 12% tax as of July 2023 same as it was set in Budget 2023. So the revised GST rate on mobile phones isn’t really new.
Other external & internal factors such as supply-chain shortage, the Russia-Ukraine war, fluctuating value of INR, geopolitics, etc are still leading to higher prices in the mobile & smartphone industry.
Will the “new” GST rates make smartphones cheaper in India is still a question to be answered
GST Rates on Electronics 2023
TVs with a screen size of 27 inches or less: Reduced from 31.3% to 18%.
Mobile phones: Decreased from 31.3% to 12%.
Home appliances (including refrigerators, washing machines, fans, coolers, geysers, etc.): Slashed to 18%.
Mixers, juicers, etc.: Reduced to 18%.
LEDs: Decreased from 15% to 12%.
Refrigerators: Reduced from 31.3% to 18%.
With reduced taxes, #GST brings happiness to every home: Relief through #GST on household appliances and mobile phones 📱🖥️#6YearsofGST #TaxReforms
— PIB India (@PIB_India) June 30, 2023
#GSTforGrowth pic.twitter.com/LgjGQMbw6e
With reduced taxes, #GST brings happiness to every home: Relief through #GST on household appliances and mobile phones 📱🖥️#6YearsofGST #TaxReforms
— PIB India (@PIB_India) June 30, 2023
#GSTforGrowth pic.twitter.com/LgjGQMbw6e
Important note: The comparison chart compares the tax rates on electronics from the Pre-GST era vs the current tax rates and these comparison rates are not considered as a comparison between the latest GST rates. For the same, the chart seems to be causing confusion among consumers.
FAQ on Reduced GST on Mobile Phones & Other Electronics
Did the government reduced GST on mobile phones?
The government of India recently announced a GST rate comparison of earlier Pre-GST era tax rates vs current GST rates on electronics in 2023 as per which the GST on mobile phones is reduced from 31% to 12%. However, in reality, mobile phones had a 12% GST Rate when it was first implemented and it again got effective in Budget 2023 itself.
2. When will mobile phones become cheaper to buy?
Mobile phones may become cheaper to buy from 2023 to 2024 due to revised GST rates from 18% to 12% in Budget 2023.
Tip: To find the best deals, and discounts on Mobile Phones & Smartphones, be sure to check out our latest Mobile Phone deals
3. When will TV become cheaper to buy?
Smart TV or televisions up to 27 inches have received a GST rate cut from 31.3% to 18% making them cheaper to buy in 2023. However, TVs above 27 inches still have a higher GST rate of 31%. So you may consider finding a good deal on a TV up to 27 inches if that suits your preference.
Tip: Prime Day Sale is Coming, be sure to keep an eye out on our festive Prime Day Sale 2023 page to find the best TV deals first.
4. What is the minimum amount for a GST refund?
The minimum amount for GST Refund is said to be Rs.1000 as of 2023
5. Who can register for GST in India?
Businesses & service providers whose turnover exceeds the threshold limit of Rs.40 lakh or Rs.20 lakh or Rs.10 lakh as the case may be.
6. What are 12% rate for GST electronics items?
Mobile phones, LEDs, and sewing machines are some of the electronics having 12% GST rate as of 2023.
7. When was GST first introduced in India?
GST was introduced in India in 2017 on 1st July into different tax slabs, including 5%, 12%, 18%, and 28%.
Thanks to @Budhe-Baba for first sharing this news with us here: Good News - GST will be reduced soon on many products
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https://www.desidime.com/news/has-gst-reduced-on-mobile-phones-gadgets-all-you-need-to-know?page=1#post_9380319
Shubham021 wrote:
Hope devices will be cheaper
Hi Shubham, I totally get your hope for cheaper devices especially one's like TVs above 27 inches that still have higher taxes of 31%... The government did announce some changes in GST rates on electronics, but whether it'll directly lead to lower prices is still uncertain due to the many challenges the electronics industry has... Let's hope for the best
https://www.desidime.com/news/has-gst-reduced-on-mobile-phones-gadgets-all-you-need-to-know?page=1#post_9380320
If taxes decrease and manufacturers sellers decide to pass it on to customers the real benefits reaches at Tortoise pace mostly with minimal effect as they want to gulp it claiming input costs increase etc .
The only thing that brings down price is the manufacturer seller decision for prices seeing competition , stock holding , to keep production units running on , etc . There profits margins is multiple than the meare tax on its products.
https://www.desidime.com/news/has-gst-reduced-on-mobile-phones-gadgets-all-you-need-to-know?page=1#post_9380342
Loaferg wrote:Definitely, their profit margins may be multiple than the tax they are paying (probably the reason why they are still in business) but tax does play an important role in the cost of the product and what the end user has to pay.. and apart from that there can be several other factors that may affect a price of the product such as Supply Chain etc
If taxes decrease and manufacturers sellers decide to pass it on to customers the real benefits reaches at Tortoise pace mostly with minimal effect as they want to gulp it claiming input costs increase etc . The only thing that brings down price is the manufacturer seller decision for prices seeing competition , stock holding , to keep production units running on , etc . There profits margins is multiple than the meare tax on its products.
but yes, even I think that the pace at which the benefits would get passed on to the customer would be much slower than what we may expect... Thank you for your comment @loaferg
2
https://www.desidime.com/news/has-gst-reduced-on-mobile-phones-gadgets-all-you-need-to-know?page=1#post_9380500
let's see how much it effect on rates
https://www.desidime.com/news/has-gst-reduced-on-mobile-phones-gadgets-all-you-need-to-know?page=1#post_9380505
sasasasa wrote:Correct..thanks for your commentlet's see how much it effect on rates
https://www.desidime.com/news/has-gst-reduced-on-mobile-phones-gadgets-all-you-need-to-know?page=1#post_9381579
Mostly companies dont pass down the benefits they get to customers. When transition is from lower to higher tax, they would increase prices in a flash, but when tax decreases, the companies would keep the price higher and take their time so that in meanwhile they can fleece the customers for a short period. We see this in restaurants where taxes at the lowest ever but still those companies never corrected their prices.
This is just my observation
https://www.desidime.com/news/has-gst-reduced-on-mobile-phones-gadgets-all-you-need-to-know?page=1#post_9383045
All companies will not change MRP. All have old stock with old MRP. Changing MRP is a tedious task for all OEMs as they have to change may things.
Mostly all items are sold at MRP and discount on MRP to end user.
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