Goods and Services Tax (GST) is a system that merges a majority of the indirect taxes into a single tax regime. The new uniform tax structure will replace several indirect taxes, which are currently applicable. This will simplify the tax structure, reduce tax evasion and improve compliance.
GST was implemented on 1st July 2017and the government has classified over 1200 items under different tax brackets. There are five slabs; zero percent, 5%, 12%, 18%, and 28%. GST will affect almost all products and services.
Below is a summary of how electronics products will be affected after the implementation of GST.
- Smartphones and tablets
Before the GST regime, the applicable taxes on smartphones were approximately 13.5%. This is now reduced to 12%, which is marginally expected to decrease the prices of smartphones. The components used to manufacture the phones are also in the 12% GST bracket that may further reduce the prices.
- Electronic appliances
Most electronic appliances like vacuum cleaners, dishwashers, refrigerators, washing machines, toasters, and others are now in the 28% GST slab. It is expected that the prices of these products will increase under the new tax regime. However, you do not have to worry about the price hike as consumer durable loans (CDLs) are easily available at anaffordable rate of interest.
- Laptops and desktops
Prior to the implementation of GST,laptops and desktops levied between 14% and 15% taxes. However, these are now within the 18% GST slab. Related products like monitors and printers will be taxable at 28% GST rate. This will increase the effective prices of these products. But you may easily buy a laptop on EMI using a consumer durable loan.
The procedure to apply for a durable loan is simple, quick, and easy. You need to provide basic information like your name and birth date, residential and office address proof, identity proof, and bank account details while applying for a consumer durable or laptop loan.
Any person between 21 and 65 years of age may avail of such loans. Financial institutions provide such loans on different products like furniture, home appliances, smartphones, tablets, laptops, and much more.
You may also apply for a tablet on EMI facility and avail of a loan to fund your purchase. The entire loan application may be duly filled within a few minutes. This will help you determine your eligibility without any delays.Reputed lenders work with large dealerships across the country to offer such facilities. Representatives of lending institutions like Capital First assist you with the documentation and you will be able to buy all the products of your choice without any delay.
Do not worry about the price increases in the post-GST tax structure. The easy availability of loans ensures that you will be able to purchase your desired laptop or tablet without any worries.