'GST reduced tax rate on household goods'
'GST reduced tax rate on household goods'
Finance Ministry on Monday lauded the Goods and Services Tax (GST), which marked seven years of implementation, and said that it has brought significant relief to households by reducing taxes on essential items like household appliances and mobile phones.
Launched on July 1, 2017, GST replaced around 17 local taxes and cesses. The theme for this year's GST Day is "Sashakt Vyapar Samagra Vikas" (Empowered Trade Overall Growth).
The finance ministry highlighted that the reduction in tax rates on household goods post-GST has brought happiness and relief to homes. "With reduced tax rates on household goods after GST implementation, #7yearsofGST has brought happiness and relief to every home through lower GST on household appliances and mobile phones," the ministry stated in a post on social media platform X (formerly Twitter).
Since its rollout, the GST taxpayer base has expanded significantly, reaching 1.46 crore in April 2024 from 1.05 crore in April 2018. "We have witnessed a quantum jump in the taxpayer base along with improved compliance," PTI quoted Central Board of Indirect Taxes and Customs (CBIC) Chairman Sanjay Kumar Agarwal as saying.
Comparative charts released by the ministry show that GST has made living easier by lowering the expenditure on food items and mass consumption goods. Food items such as unpacked wheat, rice, curd, and lassi, which previously faced taxes of 2.5-4 percent, are now tax-free under GST.
Additionally, household goods including cosmetics, wrist watches, sanitary plastic ware, doors and windows, furniture, and mattresses are now taxed at 18 percent, down from the 28 percent rate under the old excise and VAT regime. Essential electronics like mobile phones, TVs up to 32 inches, refrigerators, washing machines, geysers, and fans, which were previously taxed at 31.3 percent, now fall under the 18 percent tax slab.
The ministry also emphasized the reduced compliance burden for small taxpayers. The GST Council has recommended waiving the annual return filing requirement for taxpayers with an aggregate annual turnover of up to Rs 2 crore in fiscal 2023-24. The Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme has cut the number of returns filed annually from 24 to 8 for over 44 lakh small taxpayers. Additionally, the Invoice Furnishing Facility (IFF) has ensured seamless passage of Input Tax Credit (ITC).
GST's implementation has not only simplified the tax structure but also fostered growth and compliance, bringing tangible benefits to households and businesses alike.
(With inputs from PTI)
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