The GST Council has decided to lower taxes on electronic items, offering a welcome respite for consumers. The 28% tax bracket has been abolished, leaving only two slabs of 5% and 18%. This change will result in lower prices for products like televisions, refrigerators, air conditioners, and dishwashers. The key question is whether mobile phones and laptops will also experience price reductions.
The government has reduced the Goods and Services Tax on televisions (LCD and LED), monitors, and projectors from 28% to 18%. Previously, high taxes contributed to elevated prices, but now consumers can anticipate savings of approximately 2,000 to 3,000 rupees on televisions and monitors.
Air conditioners, dishwashers, refrigerators, and washing machines have also been moved to the 18% tax bracket from the previous 28%. This shift could result in savings of about 1,000 to 2,000 rupees on refrigerators and washing machines, while the price of air conditioners could fall by 1,500 to 3,000 rupees.
However, there is no price relief for consumers on mobile phones and laptops. The existing 18% GST on both categories remains unchanged. This means that the tax structure for smartphones and laptops will remain the same. Consequently, their prices are expected to remain at the current levels, and consumers will not benefit from any price reductions. Specifically, there will be no decrease in smartphone prices. Likewise, the GST on laptops will stay at 18%.