Introduction:
Even after the fiscal year 2022–2023 has ended, the effects of the GST (goods and services tax) changes from the previous year are still felt. To keep up with the constantly changing tax rules, businesses reorganized their procedures in the prior fiscal year and created significant GST modifications. All three tax regimes apply to that percentage of the cost of the goods and services that are put up for sale. GST, or "goods and services tax," is a metaphorical term. This is referred to as the "GST rate". A business that was established in accordance with the GST law is required to add the GST to the cost of each item that it sells.
Recent update:
On July 1, marking the sixth year of the introduction of the Goods and Services Tax (GST), the Union Ministry of Finance reported that the government had decreased the GST on the buying of electronic goods. Mobile phones, TVs up to 27 inches, refrigerators, washing machines, and other electronic devices are included on the itemized list.
The government claims that customers will no longer be required to pay the 31.3 percent GST when purchasing mobile phones, smart TVs up to 27 inches, and other items. The Press Information Bureau announced the lower GST rates on electronics and household appliances via Twitter.
The Finance Ministry has lowered the GST rates on a number of goods in an effort to make household appliances more affordable.
What is new for individuals?
The general populace has received significant aid from the government. The GST on electronic goods has been drastically decreased. Now, the cost of a refrigerator, TV, and mobile phone can be decreased.
The cost of GST on electronics purchases has been decreased by the government. Users won't have to pay the full 31.3 percent GST anymore to purchase these items. By lowering the GST on items like UPS, washing machines, smartphones, refrigerators, and other electronics and goods, the authorities have made the average person happy. Before this change, consumers were subject to GST charges of up to 31.3 percent.
The Finance Ministry announced the lower GST rates on electronics and household appliances via Twitter. As a result, users will find these products more affordable.
This is an overview of every product whose price will decrease as a result of the new GST rates:-
TV will cost less to purchase-
GST has been reduced by the government for TVs with screens smaller than 27 inches from 31.3 percent to 18 percent. The majority of buyers won't profit from this, though, as the majority of smart TVs have screens that are 32 inches or larger and continue to have a 31.3 percent GST. Therefore, you may save some money if you prefer a smaller TV. However, the GST will remain unchanged if you desire a larger TV.
Mobile phones will be more affordable-
Mobile phones are now less expensive for consumers thanks to a reduction in the government's GST. A user previously had to pay 31.3 percent GST while purchasing a cell phone. This has been lowered to 12%, allowing mobile phone firms to lower the cost of their devices.
Additionally, home appliances will cost less-
Fans, coolers, geysers, and other household goods like washing machines and refrigerators will also be less expensive. These domestic appliances now have a price decrease of up to 12 percent because the GST has been reduced from 31.3 percent to 18 percent.
Additionally, the GST has been reduced for additional kitchen appliances such as mixers, juicers, vacuum cleaners, LEDs, vacuum flasks, and vacuumed utensils. Although the GST on LEDs decreased from 15% to 12%, it remained at 31.3 percent for mixers, juicers, and other appliances.
GST collection for the month of May has shown an increase:
In the meantime, the government's GST revenue in May 2023 was Rs 1,57,090 crore, 12% more than it was in the corresponding month the year before. In May 2023, the GST collection totaled Rs. 28,411 crores for CGST, Rs. 35,828 crores for SGST, and Rs. 81,363 crores for IGST (including Rs. 41,772 crores for goods imported).
Maharashtra recorded the biggest absolute GST revenue in May 2023, at Rs 23,536 billion, according to a breakdown of GST collections by state. Other states with high GST collections were Karnataka, Gujarat, Tamil Nadu, Haryana, and Uttar Pradesh. Better compliance by taxpayers and enhanced revenue generation were credited for the May 2023 GST revenue.
Conclusion:
The GST rate on items including refrigerators, washing machines, fans, coolers, geysers, and many more has been reduced from 31.3 percent to 18 percent. The gross income from GST received in June only increased by a mere 2.80% to Rs 1,61,497 crore from Rs 1,57,090 crore in May, according to IANS. Amounts for the CGST, SGST, IGST, and cess from the GST received in June were as follows: Rs 31,013 crore for CGST, Rs 38,292 crore for SGST, Rs 80,292 crore for IGST (which incorporates Rs 39,035 crore for goods imported), and Rs 11,900 crore for taxes (which includes Rs 1,028 crore for goods imported). The government has paid a total of Rs 36,224 crore and Rs 30,269 crore CGST and SGST respectively, from IGST.
Experts predict that when new anti-evasion laws, such as the indirect revenue authority's operation against false registrations, are put into place, the double-digit growth will continue for the next few months.
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