The impact of GST on the electronics industry is harmful because many products are likely to be taxed at a lower rate yet are still subject to high taxation. Because many electronic devices are consumer durables that are now utilized daily by even low-income families, the misconception that electronics are still a luxury item must be dispelled.
For example, the government has placed the washing machine in the highest tax bracket, at 28%, which in no way justifies the taxation policy.
Impact of GST on Domestic Appliances and Electrical Machinery
Handlooms utilized in the handicraft business are the only machinery subject to the GST NIL rate. The majority of electrical machinery is taxed at a rate that is similar to the GST rate. For the end-user of the above electrical machinery, it is projected that prices will remain stable.
Manufacturers who use electrical machinery will benefit from the availability of input tax credits on services used. It was previously unavailable under VAT.
However, after GST, the rate for each household electronic item, such as refrigerators, washing machines, or vacuum cleaners, is set at 28 percent. GST would almost definitely result in a 2-3 percent increase in tax burden. The Laptop GST rate is at 18%. By chance you are late in paying your GST, you can find out your penalty through a gst late fees calculator tool by clicking here.
Placement of the essential appliances such as fridge and washing machine beneath 28 percent slab illustrates that electronic appliances are still seen as a luxury by our government. Due to the 28 percent tax rate, manufacturers of household electrical appliances such as Samsung, Godrej, and Voltas may not deliver any GST benefits to the end-user.
Clarifications are also needed about the treatment of current state-provided tax exemptions or deductions. Manufacturers in Mumbai would be the only ones benefiting from the GST because they are charged octroi at a rate of 5% after other taxes (on average 25-26%) on domestic electrical appliances.
What Time of the Year do you Need to Pay GST on Electronics?
An average taxpayer is required to submit a minimum of 3 returns every month. This comes under the standard scheme. Under the composition scheme, GST needs to be paid quarterly. The GST payment deadline is 20 days after the end of the month.
The due date for those enrolled in the composition plan will be 18 days following the end of the quarter. You can pay via net banking or cash check in person at the branch, and only after logging into your gst.gov.in account can you pay your GST. Payments can be made by net banking or cash checks in person at the branch.
The price of televisions, refrigerators, vacuum cleaners, and air conditioners is likely to rise due to expected inflation and a rise in the tax rate. Commercial electrical machinery is projected to maintain its current pricing level.