If there is a tweak / inflation left, buy these 3 things, prices will go up next month, decision will be taken in GST meeting.
Prices may rise next month at the GST meeting
GST rates on fridges, air conditioners and washing machines are likely to be raised at next month’s GST Council meeting.
● People are going to feel one more tweak of inflation
● GST on AC and cooler and washing machine may increase
● If ACs and coolers are included in the 28 per cent GST slab, the price will go up
● The GST meeting is to be held next month
● Possibility to increase rates of non-food items at the meeting
Troubled by rising food prices is going to hit the common man one more time. From next month, AC, fridge, washing machine can be expensive. The government is considering raising GST on white items such as washing machines, fridges and ACs. The government is debating whether to increase the existing GST on washing machines, fridges and ACs from 18 per cent to 28 per cent. The government wants to bring these 3 items in the 28 per cent GST slab. If that happened then there would be a huge increase in the prices of all three items. A meeting of the GST Council will be held next month in which a decision will be taken, media reports said.
Which items can increase GST rate
The government is considering raising GST on ACs, fridges and washing machines. That means 18 per cent GST is currently levied on ACs, fridges, washing machines, now the government is considering levying 28 per cent GST on these items. Prices of ACs, fridges, washing machines could go up if 28 per cent GST is applied. According to the report, the government is considering raising the GST on white goods from 18 per cent to 28 per cent. White goods are currently in the 18 per cent GST slab. Let me tell you that four years ago the government reduced the GST rate on white goods from 28% to 18%.
Government’s readiness to reduce GST slab
The central government is planning to reduce the existing four slabs of GST to three. The decision will be taken at the GST Council meeting next month. India currently has four slabs of GST – 5 per cent, 12 per cent, 18 per cent and 28 per cent. Under the scheme, the government can remove the 12 and 18 per cent slabs and create a new 15 per cent slab. With this the slab of 5 per cent can be increased to 6 or 7 per cent. There are no plans to change the 28 per cent slab, meaning the slab will remain stable at 28 per cent. About 70 per cent of the country’s total GST collection comes from 18 per cent slabs. The 18 percent slab comes with 480 items.
These items are included in the 5 per cent GST slab
Currently 5% slabs include frozen vegetables, compost, spices, plastic waste. Also ghee, nuts, fruit, purses, handbags come at 12 per cent. The 18 per cent slab includes washing machine, AC, refrigerator, camera, shampoo while the 8 per cent slab includes motorcycle, pan masala, sunscreen.
