Brief of Goods and Services Tax (GST)
The Goods and Services Tax (GST) as we all know is taken into implementation from today onwards. In the last month GST Council announced categorisation of 1200 goods and 500 services under 4 different tax slabs – 5%, 12%, 18%, and 28%.
Where does that leave the technology sector? Do you have to pay more or less for your next gadget purchase? Will GST be benefitting Telecom services? Will you be able to buy your dream 4k TV at cheaper rates for which you are waiting for a long time?
In this article, I will try covering all your queries related to taxes imposed on Technology sector by GST.
Smartphones and manufacturing parts
Thanks to GST. Smartphones will now be cheaper than before. Previously, the tax imposed on Smartphones was 13.5% but now in GST, Smartphone sector is kept in the 12% slab of taxation so the phones will be quite cheaper. Also, the manufacturing parts of Smartphones lies under the same slab of 12% taxation. This, combined with Government Make in India initiative will help in a big slash in mobile prices. That’s a good indication for all the Tech savvy out there. 😛
There is more to it. Other than Smartphones communication mediums like the Telephone sets, landline, and any other voice transmission devices, including all wired and wireless communication devices, will be imposed with the 18% tax slab.
Trending – iPhone prices were slashed upto 6,600 Rs on the iPhone 7 256 GB “GST effect on Apple”
TVs, ACs, Washing Machine, Refrigerator
All the above-mentioned electronics and durables will now be sold at very higher rates. From July 1st price of TVs, ACs and other electronics and durables will be inflated as they are now kept in the 28% tax slab one of the highest among all. Other durables like the Washing machine, Mixer & Grinder, Juicers, Electrical Irons are also imposed under the 28% tax bracket. There will be around 4-5% rise in price compared to the previous price.
Entertainment, Cable and DTH services
The taxes levied on Entertainment by States will now be absorbed in GST. The States imposes 10% to 30% of taxes. This services also impose additional 15% of tax. But now in GST, the following sector is kept in the 18% tax slab which is a great news to have. A decrease of around 20-30% is phenomenal and due to it, there will be a drastic change in prices of DTH and Cable services.
Camera, Monitors, Computer parts
Cameras like all the Video cameras, digital cameras, projectors will come under the 28% tax slab. Also, the computers and the laptops we use in our daily life will be inflated with a rise of 28% as well.
The telecom services are also on the verge of increase in tax percentage. Previously the tax imposed was 15% but now in GST, you have to pay an additional tax of 3%. This service comes under the 18% tax slab now. Suppose, if you are a postpaid user and is sitting on a monthly bill of 1000 Rs now you have to pay 30-40 Rs more. And if you are a prepaid customer then you used to get a recharge of Rs 85 while paying Rs 100 now you will be getting Rs 82 on Rs 100.
From all the above information it can be said that the GST is good for those who are into Smartphones, cabs, Solar devices as it has been imposed by either 5% or 18% Taxation which is both for sellers and the consumers.
But at the same time, it might be a nightmare for those who are in electronics industries like Computers, Cameras, TVs, ACs, they have been imposed with the 28% Taxation bracket.
Let me know in the comment section do you find GST as a curse or boon?
Also, read this: – Jio Fiber Broadband DHAMAKA to be out soon in India.
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