Tax on commonly used household items like TVs, refrigerators, washing machine and electrical appliances has been slashed to 18 per cent post GST rollout from over 31 per cent earlier, an analysis shows. The Goods and Services Tax (GST) implementation has also brought down tax rates on luxury goods like air conditioners and automobiles.
On a day when Prime Minister Narendra Modi said that 99 per cent of items will attract 18 per cent or less tax, a Finance Ministry analysis of GST rates showed only 34 luxury and sin goods are left in the top 28 per cent bracket and even they had seen a reduction in effective tax post implementation of GST from July 1, 2017. The GST has five tax slabs of 0, 5, 12, 18 and 28 per cent with daily essential items attracting ‘nil’ tax rates and some white goods, apart from luxury and sin items, placed at the highest tax rate.
The analysis showed tax incidence under GST, which amalgamated 17 central and state levies including excise duty and sales tax, on households items like television sets of up to 27 inches, refrigerators, washing machine, household electrical appliances such as mixer, juice and vacuum cleaner, geyser, fans and coolers and watches came down from 31.3 per cent pre-GST to 18 per cent.