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GST on consumer durables likely to come down
Posted on: 20/Nov/2017 3:31:21 PM
The government is now eyeing to bring down the Goods and Services Tax (GST) on consumer durables such as refrigerators, washing machines, etc. after reducing the same for consumer goods and daily utilities. By 28 percent, the GST is likely to be reduced during the next phase of rationalization.
This initiative is believed to surge demand in the sector amidst all the complaints regarding slowdown and excess capacity. The daily workloads of women are also taken under consideration while making this move, said a government official.
The step taken to reduce levy on restaurants were also done so as to free up women out of their household chores that starts with breakfast preparation and lunchbox packing for children until finishing out the dinner works for the day.
With products like dishwasher or washing machine, women feel relieved from the burden and find more time for their personal works. Apart from this, India imports products like dishwashers. With such lesser levy of GST, it may encourage companies to produce the machines within the country rather than sourcing from nation like South Korea or others. To note, a lot of white goods fall under 12 to 18 percent bracket.
Sharing his views in this regard, a partner at Deloitte India, M S Mani said when all the consumer durables are quoted with 18 percent GST, it would be a great encouragement to all the Indian manufacturers, as they will enforce price reduction and lead to surge in demand as well. Bringing 18 percent GST is a reasonable deal, as the machines like dishwashers are still considered a luxury.
To note, GST on restaurants apart from 5-star hotels were brought down from original 18 percent to 5 percent, to note.
