• Source:JND
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GST 2.0 Tax Prices: In what is being termed the most significant overhaul of the Goods and Services Tax (GST) regime, the Government of India has decided to maintain the existing 18 per cent tax slab for mobile phones and laptops, citing their inclusion in the Production Linked Incentive (PLI) scheme and prior import duty adjustments. This decision comes as part of the most significant GST reform to date, approved by the GST Council earlier this month. The new structure, effective from Monday, introduces a simplified two-tier tax system and revises rates for over 375 items, impacting household budgets nationwide.

Under the new structure, most goods and services will be taxed at either 5 per cent or 18 per cent , replacing the previous four-slab system. The 12 per cent and 28 per cent rates have been eliminated, and a new 40 per cent rate has been introduced for luxury goods. Additionally, many everyday items are now tax-free.

The new GST rates, effective nationwide today, will significantly impact the electronics sector. Air conditioners, refrigerators, washing machines, dishwashers, and large-screen TVs, previously taxed at 28 per cent , will now fall under the 18 per cent slab. As a result, these items will become more affordable for middle-class families.

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However, the GST 2.0 reform does not reduce the tax rates for mobile phones and laptops, which remain at 18 per cent . Consumers hoping for price reductions on these items will need to rely on seasonal offers.

GST 2.0 Tax Prices: New GST Slab

- 5 per cent : Everyday items

- 18 per cent : Standard goods, including household items and electronics

- 40 per cent : Luxury items

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GST 2.0 Tax Prices: Impact on Electronic and Household Items

- Prices of air conditioners and dishwashers are expected to fall by Rs 3,500–4,500 per unit.

- Prices of refrigerators and washing machines are expected to decrease by 8–9 per cent .

- There is also the possibility of a significant drop in the prices of large-screen (more than 32 inches) TVs.

GST 2.0 Tax Prices: Mobile Phones and Laptops

The GST 2.0 reform will not lower tax rates for mobile phones and laptops, which remain in the 18 per cent tax bracket. This is due to the benefits mobile and laptop manufacturers already receive from the Production Linked Incentive (PLI) scheme and adjustments in import duties that previously placed these items in the 18 per cent slab. Further reducing taxes on these products could result in revenue losses for the government.