New Goods and Services Tax (GST) rates have come into effect across India today. The central government had announced these changes earlier this month.
In his address to the nation on Sunday, Prime Minister Modi said that the GST savings festival would start on the morning of September 22nd, benefiting all segments of society.
These new rates are expected to make many items cheaper. Let’s see what has become more affordable and whether this affects the price of iPhones.
Items That Have Become Cheaper
With the rollout of GST 2.0, the prices of several items have dropped across the country. Everyday essentials like milk, cheese, pizza, pencils, and notebooks are now cheaper.
Life-saving medicines and household appliances such as air conditioners, washing machines, LED/LCD TVs, monitors, and projectors also cost less.
Similarly, the prices of soaps, shampoos, small cars, three-wheelers, ambulances, motorcycles under 350cc, and commercial vehicles have decreased.
What About iPhones and Smartphones?
Unfortunately, smartphone customers will not benefit from the new GST rates. Mobile phones continue to attract 18% GST, which means the price of iPhones
and other smartphones will remain the same. Customers will still pay 18% GST when buying a new phone.
Government Requests on Smartphones
The India Cellular and Electronics Association (ICEA) had requested the government to include smartphones in the 5% GST slab, arguing that phones have become a necessity and an important part of Digital India. Before GST, most states treated mobile phones as essential goods.
Initially, smartphones were taxed at 12%, but this was increased to 18% in 2020.
