GST rate cut
Recently, the government has cut the rates of Goods and Services Tax (GST), due to which big things like TV, air conditioner and car have become cheaper. This exemption on festivals like Diwali seems to be happy news for everyone. The government has reduced the interest rates along with simplifying the GST so that people can spend easily and the economy increases. But the question is whether common buyers are really getting the real benefit of this cut or not?
What changes in GST 2.0?
From September 22, the GST rates have been converted to three easy slabs 5%, 18% and 40%. Its purpose is to simplify the tax system and provide relief to consumers. Especially tax has been reduced on essential items like medicines and milk. Similarly, tax has been reduced on expensive things like air conditioner, TV, and cars. For example, small cars have increased from 40,000 to 75,000 rupees, while their prices have come down from Rs 7,000 to 18,800 due to low tax on two -wheelers.
Does the GST cut lead to real savings?
While prices look low after the GST cut, on the other hand, retail sellers and brands try to hide it by increasing MRP (maximum retail price). For example, the sale price of an air conditioner decreased, but its MRP was increased. This helps the shopkeepers to show more discounts, while the customer has less real savings. According to an ET report, a survey revealed that only 20% of the buyers got the actual benefit in the 2018-19 GST cut. The rest of the people felt that the savings brand or shopkeepers kept it for themselves.
Caution is important in festive season
GST deduction is natural to increase enthusiasm during purchases. The discounts and offers on festivals also look very attractive. But it is not right to shop in a hurry at this time. Because there is not much increase in your income, the purchase can become an economic burden later on the credit card or EMI. Just because the prices are looking low, do not spend too much.
GST cuts are advantage, but it is necessary to be conscious
The goods have become cheaper after the GST cut, but you should shop carefully. It is necessary to understand the changes in the prices of shopkeepers and marketing tricks. Compare prices before shopping, and spend as per the need. Use credit card or EMI carefully so that the happiness of festivals does not change the burden of debt later.