GST rate cut: Refrigerators, washing machines, kitchen appliances to be cheaper from 27 July 2018 Consumer appliances like refrigerators, washing machines, small screen TVs, vacuum cleaners and sundry kitchen essentials will now cost 7-8 percent less, as companies prepare to pass on the benefits of
GST rate cut: Refrigerators, washing machines, kitchen appliances to be cheaper from 27 July 2018
Consumer appliances like refrigerators, washing machines, small screen TVs, vacuum cleaners and sundry kitchen essentials will now cost 7-8 percent less, as companies prepare to pass on the benefits of the recent GST revisions. Last week the Modi government had announced the biggest GST rate cut since last November and slashed the levy on several white goods and commonly used kitchen appliances like mixer-grinders and juicers by 10 percent – from the highest tax bracket of 28 percent to 18 percent. The new rate comes into effect today.
According to The Economic Times, with this development, the total taxation amount on several consumer electronic products is now lower. It is lower than what it was during the earlier VAT regime when it stood at around 26.5 percent. Better still, industry insiders claim that prices will come down to nearly a two-year low.
“With the revision of GST rate on refrigerators and washing machines. There will be a reduction of price to the tune of 7-8 percent for the end consumer. Godrej will pass on the entire benefit of GST reduction to the consumers”. Said Godrej Appliances Business Head and Executive Vice President Kamal Nandi. Adding that the rate cut will provide relief to the appliances industry.
“The revision will make refrigerators and washing machines more affordable which will accelerate the penetration of these appliances across India. This, in turn, will lead to a spur in demand which will lead to an increase in production and, hence, have a positive impact on the GDP,” he explained.