Upcoming GST Reforms in India: ACs, cars, TVs, and essentials price drop soon
Cars, ACs, Televisions And More Likely To Get Cheaper Under New GST Reforms: Under the proposal to reform GST, if the government implements only 2 tax slabs (like 8% and 15%), as suggested in reports, then many daily-use items and festive season shopping items can become cheaper by Diwali. This includes ghee, medicine, AC-TV, car-bike, and many other items can become cheaper. Currently, GST has four main slabs – 5%, 12%, 18% and 28%, and by simplifying the tax structure to only two slabs, customers can get direct relief. According to an estimate, many types of things can become cheaper.
Which things can become cheaper in Diwali?
If the government implements the proposed two new GST slabs, then furniture, LED lights and decorative lights, shelves and home decor items, and electronic home appliances like TV, mixer, fan, etc., will become cheaper. Apart from this, shampoo, soap, cream, toothpaste, perfume, deodorant (which currently comes under 18% or 28% tax), etc., can also become cheaper. Among food items, chocolates, sweets, processed foods, namkeen, bakery items, and ready-to-eat products can also become cheaper.
Clothing & Footwear & Fashion Accessories
Due to reduction in GST slab, prices of branded clothes, shoes above ₹ 1,000, fashion accessories, toys and children’s items, children’s toys and school stationery like bags and water bottles, headphones, smartwatches, and mid-range mobile phones are also expected to decrease.
After all, why will these things become cheaper?
Let us tell you, if the goods which are currently under the 18% or 28% GST slab are put in the 15% tax slab, then their price will decrease. Simplifying the tax structure will reduce the compliance cost, due to which companies can reduce prices. This will increase consumption, which will boost festive demand in the market.
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