GST lowered taxes on household items, providing comfort to individuals

The Finance Ministry stated on Monday that after 7 years of implementation, the Goods and Services Tax (GST) has brought joy and relief to households by reducing taxes on household appliances and mobile phones.

GST, which replaced approximately 17 local taxes and cesses, was implemented on July 1, 2017. The 7th GST Day's theme is Empowered Trade Overall Growth.

The number of GST taxpayers has risen to 1.46 crore in April 2024 from 1.05 crore in April 2018.

Sanjay Kumar Agarwal, Chairman of the Central Board of Indirect Taxes and Customs (CBIC), stated that there has been a significant increase in the number of taxpayers and better compliance.

The ministry presented charts comparing tax rates before and after GST for household goods, noting that implementing GST has made it easier for households to save money on food and mass-consumption items.

After the introduction of GST, food items like loose wheat, rice, curd, and lassi, previously taxed at 2.5-4 %, are now taxed at a rate of zero.

Household items such as cosmetics, watches, plastic ware, doors, windows, furniture, and mattresses are now taxed at 18 % under the GST system, a decrease from the previous excise and VAT rate of 28 %

The ministry announced that mobile phones, TVs up to 32 inches, refrigerators, washing machines, electrical appliances (excluding air conditioners), geysers, and fans that previously had a 31.3% tax rate now fall under the 18% tax bracket in the GST system.

It also mentioned that the burden of compliance has been lessened for small taxpayers, and the GST Council has proposed to eliminate the need for annual return filing for taxpayers with annual turnover of up to Rs 2 crore in fiscal 2023-24.

The QRMP scheme has decreased the number of returns filed annually from 24 to 8 for over 44 lakh small taxpayers, with IFF ensuring smooth ITC passage, as per the ministry.