GST impact: Mobiles, computers to become more expensive


New Delhi: The two-day GST-council meet has begun on Thursday, and is working on slabs for different items. There is a four-tier tax structure, of 5, 12, 18, and 28 percent that will be followed, along with a cess on certain items.

As per sources, this is not going to have good results for people who want to buy gadgets, as the tax on things like mobiles, DTH, Internet services, and so on are likely to go up.

Phones will become available with a duty of just 12 percent; compared to 17 to 27 percent earlier so imported phones should get cheaper.

However, phones Made in India will get more expensive, as they currently pay around 7.5-8 percent. With GST, these phones will also fall under the 12 percent slab, as will parts for manufacture.

The government has kept a large number of items under 18% tax slabs. The government categorised 1211 items under various tax slabs.

Here is a low-down on the tax slab these items would attract:

No tax

No tax will be imposed on items like fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, bindi. Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, hotels and lodges with tariff below Rs 1,000, Healthcare, education etc.

5% tax

Items such as fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats, Transport services (Railways, air transport) will attract tax of 5 %.

12% tax
Frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine, cellphones and non-AC hotels will be under 12 % tax slab.

18% tax

Most items are under this tax slab which include flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces will be under 18 % tax slab.

28% tax

Chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with choclate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use, yachts, 5-star hotels, race club betting, cinema will be under 28 % tax slab.

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