Silicon Updates: Goods and Services Tax (GST) from 1st July! A guide to plan your electronic goods!

Goods and Services Tax (GST) with the slogan One nation, one tax is going to be implemented from 1st July. The entire phase of taxing system in the country is going to change. With the effect of GST, certain goods may have hike in price and certain other good make have a drop. You may in a confusion to schedule your purchase of the electronic goods you require - before or after the implementation of GST. This article helps you get an idea on effects of GST on consumer electronics.
The Government of has prepared a council that estimates and classifies the goods for taxation. After a long research, the GST council has made four tax slabs in the GST taxation system - 5% slab, 12% slab, 18% slab and 28% slab.

Communication devices and their manufacturing components:
GST into the electronics of communication were imposed as wired and wire-less communication devices.

• The wireless communication devices like smartphones were categorised into 12% tax slab, as a result, the price of smartphones is going to fall after the implementation of GST. The add-on is that the prices of the smartphones under Make in India project get the price reduction due to GST and the relaxations available on the project together. The products manufactured under Make in India are going to be cheaper after GST. Plan your purchase of smartphones accordingly.
• On the other hand, the wired communication devices like landline telephone sets etc. were categorised into 18% slab. However, there will not be much change in the prices in this tax slab. Also, there are very limited usage of the wired communication devices.

Home appliances and household electronics goods:

• The home appliances like TVs, Air Conditioners, mixers, grinders, refrigerators, microwave ovens, vacuum cleaners, washing machines, shavers, trimmers, driers etc. were categorised into the 28% slab. Hence, the prices of these goods is going to be hiked. It is expected that the prices are going to be hiked by 4% after GST. Be alarmed and plan such goods at the earliest possible!

Entertainment, Cable and DTH services:

• So, entertainment through all the channels is going to be considerably cheaper after GST, as they fall under the 18% tax slab. The taxes on entertainment, cable and DTH services vary between 10-30% over the regions. 

Cameras, Speakers and monitors:

• Cameras under any category, speakers (wired or wireless) and monitors were categorised into the highest taxation slab - 28% tax slab. So, buy these goods before the launch of GST!

Cab services:

• All the cab services like OLA, Uber were set into the 12% tax slab. As a result, the taxes on your next ride are going to drop in the range 5-6%. Enjoy your next ride!

Solar powered devices:

• With the considerable increase in solar power consumption the recent years, the GST council is planning for a greener environment with GST. They levied the least possible tax on this category of devices. The solar powered devices were slabbed into 5% tax category.

Telecom services:

• All the telecom services are slabbed into 18% tax category. As of now, the total tax paid for the telecom services is just 15%. For instance, for a recharge of 100 INR, you get 85TT but after GST, it is going to be 82 INR odds. Dear committed guys, be aware. Prefer Jio and zindagi jio! ;)

Miscellaneous goods:

• Storage devices - 18%
• Portable electric lamps, water heaters,hair dryers, curlers - 28%
• Printers, photocopiers, fax machines, ink cartridges - 28%

Some good are going to be hiked and some are going to be slammed. Plan you budget accordingly. At least, we do not have to suffer to know which tax you are being charged with, after GST!
Here is a clear explanation about GST. Check this out.

GST Explained

Video source: Anonymous from Facebook/Youtube