In 2017, Government of India introduced a new indirect tax regime called the Goods and Services Tax (GST) and before GST, Value Added Tax (VAT) and excise duty were there for the sales and purchases of commodities. In recent news, the Ministry of Finance recently announced that the government has reduced Goods and Services Tax (GST) on the purchase of electronic items on the sixth anniversary of the GST implementation on July 1. The list of electronic items includes mobile phones, TVs up to 27 inches, refrigerators, washing machines, and more.
The official social media handle of the Ministry of Finance shared a tweet with image highlighting the benefits of GST compared to the previous regime, where there were multiple taxes involved, which resulted in a higher cumulative value. Now, the image is viral with the claim that the government has reduced the GST on electronic items includes mobile phones, TVs up to 27 inches, refrigerators, washing machines etc. from July 1.
Mobile Phones are getting cheaper?
In a positive development for consumers, the revised Goods and Services Tax (GST) rates, expected to transition from 18% to 12% in the Budget of 2023, are likely to result in a potential decrease in mobile phone prices during the period of 2023 to 2024, making them more affordable to purchase.
The GST on Mobile Phones right now remains unchanged, 12% tax as of July 2023 same as it was mentioned in the Budget 2023. The updated GST rate on mobile phones may not be entirely novel, as changes in taxation have occurred in the past, influencing the pricing dynamics of these devices.