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10 household items to buy before 1st July 2017 which are set to be costlier under GST

By Paras Mehra

( 9.26K Views) June 12, 2017

10 household items to buy before 1st July 2017

Introduction

From the time government has released the GST tax rates, people specially households are very skeptical about the prices of various goods like washing machine, AC, water filter etc. People are still confused to take the decision whether to buy the product before 1^st July or after that so that they can use the benefit of lower prices.

In very simple words, the electronic items are going to be costly because tax rates on electronics are set to rise up to 28%. So, we have searched and listed 10 products which you should buy before 1^st July 2017 to save few thousands from your savings:

1. GST Impact on Price of Air Conditioner (AC) - To become Costly after 1st July 2017

Air conditioner is one of the seasonal products which are going to be expensive from 1^st July 2017. Further, companies are offering high discounts to clear the existing stock before 1^st July 2017.

Currently on an average the tax on AC is 23% (excise plus VAT) but under GST, AC’s are kept under the tax rate of 28%. Hence, the price of AC is set to increase by 4 -5%. However, to clear the existing stock and to save tax later on, companies are offering heavy discounts. Hence, if you need a AC, then it is the best time.

Let us see the price comparison of 1.5 tone Air conditioner:

Air Conditioner (Brand)	List Price	Current Price	Discount
Voltas 3 Star 1.5 Ton	28,190	22,499	5,691
Micromax 1.5 Ton 5 star Split AC	37,990	23,499	14,491
Hitachi 1.5 Ton 3 star AC	29,890	25,999	3,891
Carrier 1.5 Ton 3 Star Split AC	40,000	29,999	10,001
Blue star 1.5 ton 5 Star split AC	44,100	34,499	9,601

2. GST Impact on Price of Television (TV, LED, LCD) - To become Costly after 1st July 2017

Going in line with the AC, the television is also going to be costly under GST regime by atleast 4 to 5%. The current average tax rate on TV is around 22 to 23%, but now the same has been raised to 28% under GST.

Hence, if you are planning to buy a television then it is the best time to buy the same otherwise you may need to shed few more thousands after 1^st July, 2017.

Here is the current TV price available on flipkart and Amazon

Television, TV, LED, LCD (Brand)	List Price	Current Price	Discount
Micromax 81cm (32) HD LED TV	23,999	12,999	9,000
Samsung 80cm (32) HD LED	28,900	17,999	11,000
Panasonic 60cm (24) HD LED	15,900	10,999	4,901
Onida 105.66cm (42) HD LED	30,990	27,999	2,991
LG 80cm (32) HD LED	23,900	19,499	4,000

3. GST Impact on Price of Washing machine - To become Costly after 1st July 2017

As said like the above two machines, the price of washing machine is also going to increase by atleast 5 to 6% on an average. The reason behind the price rise is fully on account of GST because tax rates have been proposed to be charged at 28%.

Hence, if you are planning to buy a TV, then today is the right time.

Here is the price comparison as of today:

Washing Machine (Brand)	List Price	Current Price	Discount
Haier 5.8 KG Automatic	14,990	10,990	4,000
Godrej 6 KG Fully Automatic	13,200	11,990	1,210
Samsung 6.2 KG fully automatic	15,790	14,499	1,291
Bosch 7 Kg Fully Automatc	39,499	30,590	8,909
Whirlpool 7 KG Fully Automatic	21,425	16,490	4,935

4. GST Impact on Price of Refrigerator (Fridge) - To become Costly after 1st July 2017

The prices of refrigerator are also going to increase after 1^st July, 2017. Hence, if you are planning to buy a refrigerator, then it is the right time.

5. GST impact on Price of Insurance (Policy renewal)

If you are looking to buy a life insurance, then you should buy it before 1^st July, otherwise you need to pay more. The price may go up by 3%.

Currently, the tax on insurance is 15% which and the same has been proposed to be taxed at 18% slab by the government.

6. Bank Loan to get costlier after GST implementation

If you are looking for loan, then you must apply and get the loan before 1^st July, because Banking services are also proposed to be taxed at 18% against the 15% right now. Hence, the bank loan will get costlier by atleast 3%.

The important point is that bank charges tax on processing charges levied by it.

7. GST Impact on Gold Prices after 1st July 2017

The gold is all set to get costlier under GST by 1%. Currently the gold is taxed at 1% excise duty and 1% VAT, but under GST, the tax rates on gold have been kept at 3%.

Therefore, if you are planning to buy gold, then buy it before 1^st July 2017 to save 1% cost.

8. GST Impact on Restaurant – Eating out Prices

If you are planning to spend some good time with the family and to have a great dinner with them, then we recommend you to do it before 1^st July, 2017 because eating out will cost you 3% more as GST is proposed to be levied at 18% against 15% currently.

9. GST impact on Smart phones – Mobile phone Prices - To become cheaper after 1st July, 2017

Mobile phone or smart phone is one item which is going to become cheaper from 1^st July 2017. Hence, if you are planning to buy a mobile phone, then wait for 1^st July 2017.

10. GST Impact on Car - Small and SUV Prices - to be costly after 1st July, 2017

Through automobile industry will not see a much change because GST tax rates are almost same as current taxation system. However, the SUV and hybrid car price shall increase under GST.