10 household items to buy before 1st July 2017 which are set to be costlier under GST
by Paras Mehra 9.26K
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 1st 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 1st 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 1st July 2017. Further, companies are offering high discounts to clear the existing stock before 1st 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 1st 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 1st 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 1st 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 1st 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 1st 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 1st 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 1st July 2017. Hence, if you are planning to buy a mobile phone, then wait for 1st 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.
Conclusion
We have tried to summarize the GST impact on prices which may impact the household. In case you have any query, you may write to us at info@hubco.in.
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