Soon the cost of Air-conditioners (ACs), refrigerators, washing machines, digital cameras and video games will be slashed as the government is all set to lower the Goods and Services Tax (GST) on most consumer goods.
According to the report published in NDTV, to simplify the indirect tax regime, the PM Modi-led NDA government has planned to move most goods to a GST of 18 percent and below.
It is to be noted that as of now, the GST on ACs, digital cameras and video games is at the highest slab of 28 per cent while refrigerators and washing machines are taxed at the rate of 18 per cent.
Quoting sources, NDTV said that the decision could be cleared by the GST Council as early as Saturday. “The items likely to get cheaper include water heaters, paints, perfumes, tractors, and auto parts and accessories,” the sources said.
Other items likely to be cheaper include vacuum cleaners, shavers and hair clippers, besides cement, putty, varnish and marbles, the sources added.
However, 28 per cent GST is likely to continue for luxury automobiles, yachts, private aircraft, cigarettes, pan masala, tobacco products, betting or bidding and soft drinks.
Appliances such as vacuum cleaners, shavers, hair clippers and projectors currently attract a rate of 18 per cent under GST. Building materials like cement, putty, paints and varnishes are taxed at 18 per cent while marbles attract a tax rate of 28 per cent.
On Tuesday, PM Modi said that the government was approaching a stage where 99 per cent items can be brought under 18 per cent. He also stated that the government was looking to reduce the number of items in the highest bracket to just luxury goods.
“We firmly believe that GST must be as simple as possible and we are also working constantly in that direction,” PM Modi said at the event in Mumbai.