- Recent reports spurred by an image hinted at reduced GST on electronic gadgets.
- The reduced GST was said to be on products including TVs up to 27 inches, refrigerators, etc.
- Currently, there have been no fluctuations in the prices of electronic goods.
An image recently went viral on social media claiming that the Indian government had reduced the Goods and Services Tax (GST) on electronic items, including mobile phones, TVs, and other home appliances. While the image was shared by the Indian government’s official handle and is not entirely untrue, the conjecture that it’s leading to the prices of electronics reducing, is. Check out to know what the real story is.
Mobile phones, TV prices are not reducing in India
The Ministry of Finance recently shared a tweet featuring an image displaying a table illustrating the tax rates applicable to electronic goods, such as smartphones, in India.
The “Relief Through GST on Household Goods” table presents two columns. The first column displays the tax rate on a specific gadget prior to the implementation of GST six years ago, while the second column indicates the current GST rate for that gadget.
The image has gone viral, accompanied by a claim that the government will be reducing the GST on electronic devices starting July 1st. It is being suggested that this reduction will lead to a decrease in prices for items such as phones, TVs, refrigerators, and more.
The claim is untrue, and the illustration table, which has been widely shared, may be somewhat perplexing, but it does not contain any factual inaccuracies.
Before the implementation of GST in India, mobile phones were subject to both direct and indirect taxes, resulting in an approximate tax rate of 31 percent. Currently, a GST of 18 percent is applicable. The same applies to the other gadgets mentioned in the table.
Here’s how Twitterati reacted
As per Twitter users, there was a widespread belief that the government was planning to decrease the GST rate, specifically on mobile phones, from 31 percent to 18 percent. Several users have shared and reposted a message that claims electronic gadget prices in India will decrease starting from July 1st.
That is entirely incorrect because the GST rate for gadgets has not been changed. A mobile phone currently has an 18 percent GST tax rate. This rate will stay the same unless the government decides to change it.