Goods and Service Tax (GST) introduced in July 2017 brought about a significant change in the indirect tax regime for the country. Today, it has replaced various indirect taxes like excise duty, entertainment tax, central sales tax, luxury tax, etc. bringing a uniformity for taxpayers and tax collectors.
By eliminating the cascading effect of taxes, it has made making compliances easier.
Here you will find information about GST all you need to know. To ensure that every item is levied with the correct GST tax rate, according to its necessity and usefulness, the GST council carries out GST revisions from time to time.
Recently, the GST council decided to implement the latest GST rates on goods and the latest GST rates on services. Apart from reducing tax rates on some products, some goods and services have become tax-free in the list of latest GST rates.
In the GST council meeting held on 21st July 2018, various revisions were made in the GST rates on services and goods.
Let’s look at how your monthly budgets can get affected by the revised GST rates on goods and revised GST rates on services.
With the festival season around the corner, revisions in GST rates can help you pick extra new handbag to match your outfit. Items included in this category are purses, handbags and jewellery boxes. GST rates in this category have dropped from 12% to 5%.
Other products included are chenille fabric, handloom dari and knotted caps under Rs. 1000. GST rates, on these products, are now 12% as against the 18% tax rate levied earlier. Moreover, footwear costing up to Rs.1,000 per pair will now attract 5 % GST as compared to 18 % earlier.
The changes in the rates of these items could be a big boost to your wedding shopping. To know more on how you can save money for your upcoming wedding.
With a reduction of 10% on many electronic products, your festive budget has now become more affordable.
GST rates on electronic items are currently at 18% from 28%. The items include consumer electronics like storage water heaters, immersion water heaters, milk coolers, refrigerators, washing machine, vacuum cleaners, water coolers, ice cream freezers, mixer, juicers, shavers, hair clippers, hair and hand dryers, smoothening irons and television sets (up to 68 cm).
How it can help you – For instance, a 355-litre frost-free refrigerator, which would have cost you Rs. 46,000, with the former GST slab of 28%, will now cost you Rs. 42,000 through a revised rate of 18%. To calculate GST like a pro.
GST rates on goods belonging to the FMCG category have reduced to 10% from an earlier tax rate of 28%. These include scent sprays, toilet sprays, powder puffs and cosmetic pads. The most significant change in this category is on sanitary napkins. The GST rate on sanitary napkins, which was earlier 5% has now been waived off entirely.
If you are considering touching up your home this upcoming festive season, here is some good news for you. The GST rates on paints and its ancillary items have come down in the latest revisions. GST rates for items like paints, varnish, glaziers’ putty, grafting putty and resin cement have dropped from 28% to 18%.
Your Benefit – A box of one litre paint, which would have cost you approximately Rs. 478 with 28% GST, now costs Rs. 406 with a revised rate of 18%.
5. Home Decor
If you are looking to pick antiques and glassware to decorate your home, you can now buy them at reduced prices. GST rates for home decor products have further dropped making them cheaper than before. These include wood frames, art ware made from cork, stone art ware, stone inlay work, glass statues, glass art ware, ornamental framed mirror. The GST rate for these, which was 18% initially, has now reduced to 12%.
Moreover, hand-woven products such as handmade carpets, braids, tapestries and lace are now levied at 5% as compared to 12% earlier.
No GST is applied to household products such as rakhi, siali leaves, phool bhari jhadoo, sal leaves and stone marble and wood deities.
Also read: 5 ways in which GST impacts your business
Get your favourite electronic product at the latest price with revised GST rates. Or, pick out some beautiful home décor or art for your upcoming home renovation. With revised GST rates and a loan from Bajaj Finserv, you can now buy your desired product without thinking twice.