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The Domestic appliance that we use in our daily life, have become a part of our life. While the electrical machinery are also used on vast scale in majority of all the business. The government imposes the goods and service taxes on both domestic appliance and the electrical machinery. Domestic appliances like refrigerators, cleaners, washing machines etc have become a need in our today’s world. The implementation of GST has affected both the domestic appliances and electronic machinery. The market of these appliance and machines is growing rapidly in India. So the GST taxes that are imposed on these goods will impact both the common people as well as big companies. The GST will have different impacts on both the demand and supply of domestic appliances and the electrical machinery.
In our day to day life domestic appliance and electrical machinery play an important part and cover a diverse range of both. The industry highly contributes to the people’s comfort, fundamental necessities, convenience which all ranges from daily items to advanced needs. Some of the very common domestic appliance that is used in our daily life is:
While some of the common electrical machinery includes:
In the tax system prior to goods and services tax, there were different types of taxes levied on singular goods and services. The value added tax was imposed on domestic appliances and this VAT rate used to be different in all states of India. The general range for the VAT was in between 11% – 15%. Similar to VAT, excise duty was also imposed on the electronic appliances at 12.5%. Other necessary taxes were also added along with these. At the end stage when the consumer used to buy the goods the taxes used to reach around 25-26%. This cascading effect of taxes was one of the major disadvantages of tax system 1 prior to GST.
GST Rates for domestic appliance and electrical machinery
In conclusion, The Goods and Services Tax have transformed the taxation landscape in India, benefiting the electrical machinery and domestic appliance industries in particular. With a decrease in rates of taxes under a unified system, many important goods and services have become more affordable, which has increased the demand and growth as a result. The GST’s simplified layout has lessened the complexity while boosting efficiency and transparency. Despite problems like the luxury category, many businesses have profited from GST since it has increased easy access, innovation, and economic growth.
The GST rate for electrical appliance is 18%
One of the electronic items with GST 12% is mobile phones.
The refrigerators for commercial purposes are imposed 28% GST, while the refrigerators for household purpose are taxed at 18%.
85098000 is the HSN code for electronic appliances in GST.
Some of the kitchen appliance are imposed an 18% GST while there are some kitchen appliances that are included in luxury category, they are imposed a 28% GST.
18% is the GST rate for home products.
85051190 the HSN code for electronic items.
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