The Government of India has reduced GST on home appliances and mobile phones. The GST introduction completes the sixth-year anniversary today, July 1, 2023.
The tax came into effect on July 1, 2017, through the implementation of the One Hundred and First Amendments of the Constitution of India by the Indian Government. The GST replaced existing multiple taxes levied by the central and state governments.
The GST for TV up to 27 inches was reduced from 31.3% to 18%, GST for Refrigerators reduced from 31.3% to 18%, GST for Washing Machine reduced from 31.3% to 18%, GST for electrical appliances like Mixer, Juicer, Vacuum cleaner, etc. reduced from 31.3% to 18%, GST for Geyser, Fan, Cooler reduced from 31.3% to 18%, GST for LPG stove reduced from 21% to 18%, GST for LED reduced from 15% to 12%, GST for Sewing machine reduced from 16% to 12%, GST for Static converters (UPS) reduced from 28% to 18%, GST for Kerosene pressure lantern reduced from 8% to 5%, GST for Vacuum flask and other vacuum vessels reduced from 28% to 18% and GST for Mobile phones reduced from 31.3% to 18%.
GST is the Goods and Services Tax in other words. GST is a successor to VAT used in India for the supply of goods and services. GST is a digitalized form of VAT where you can also track goods and services.
Both VAT and GST have the same taxation slabs. It is a comprehensive, multistage, destination-based tax. It is comprehensive because it has subsumed almost all the indirect taxes except a few state taxes.
GST is imposed at every step in the production process but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax, it is collected from the point of consumption and not a point of origin like previous taxes.
