GST will slash prices of smartphones and medical devices, says government

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The Centre has assured that lower GST on products like smartphones, medical devices and cement will be beneficial to consumers. To prove its point, the Centre has released calculations that show how the burden of indirect taxes will come down once GST is implemented.
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The GST Council has decided on product-wise tax rates for GST, which would be implemented nationwide from July 1.

Although manufacturers of mobile phones and white goods companies have suggested that GST would increase prices, the government has maintained its stand that in most cases, GST would be lowering down the tax burden, and the advantage of input tax credit will also ensure that product prices come down.

Also read: Indian automakers say proposed tax could make hybrids unviable
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"Weighted average VAT rate on smartphones works out to about 12%. Thus, the present total tax incidence on smart phones works out to more than 13.5%. As against this, the proposed GST rate for smart phones is 12%," an official statement said.

Other than this, medical devices, including surgical instruments, will also see a lower tax burden once GST of 12% gets implemented, as against the current rate of over 13%, excluding central sales tax, octroi and entry tax, among others.

Also read: Here’s the list of GST rate for services; 28% for luxury hotel services, healthcare exempted

In the coming days, government would also do a similar analysis for services, since several businesses like telecom and insurance have argued about increased tax burden.

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