GST 2.0: Are smartphones, laptops getting cheaper starting today?
What's the story
The Indian government's recent overhaul of Goods and Services Tax (GST) rates will not affect smartphone prices. The new GST slabs, which come into effect today, September 22, have not included mobile phones in their revised tax structure. This means that the existing 18% GST on smartphones will remain unchanged for now.
Industry impact
Smartphone industry expected tax relief
The smartphone industry was hoping for some tax relief from the GST Council. However, experts had predicted that there would be no changes in this sector. The existing 18% GST on smartphones is a major revenue generator for the government. Lowering it to 5% would have made phones cheaper, but could have hurt overall industry growth and government revenue collection.
Information
Smartphones classified as non-essential items
By not including mobile phones in the new tax slab, the government has essentially classified them as non-essential items. This decision has been met with some confusion, especially since other electronic items like TVs and air conditioners have seen their GST rates reduced.
Tech pricing
Laptops also remain unaffected by GST overhaul
Similar to smartphones, laptops will also continue to be sold at the same prices as their GST rates remain unchanged. This means that consumers won't see any immediate price drops on these tech products either. However, discounts from online sales events could still provide some relief to buyers looking for deals on smartphones and laptops in the future.