24 July : New Delhi:- The government has started to see the impact of reducing GST rates on various commodities. From paint to battery operators, they have announced that they will benefit the customers. The government has finished 28 percent GST slab on these products and made it 18 percent. That is, the prices of products are likely to fall by 10%. Nerolek Paint said that it will reduce the prices of paint by up to 10 per cent. Berger has said that he will also reduce the prices.
The government has reduced tax on 50 items
After the meeting of the GST Council on Saturday, Finance Minister Piyush Goyal had said that GST has been reduced on nearly 50 items. They include washing machines and refrigerators.
Companies say that this reduction can increase business by 6 percent. The effect of the announcement of price reduction of paint companies fell on the shares on Tuesday. According to the Bloombergquint report, Asian Paints shares were seen on Tuesday.
Organization of electric vehicle manufacturers SMEV has welcomed the decision to reduce the GST rate to 18 percent on lithium-ion batteries. However, SMEV says that this rate is high compared to the battery which was fitted in the factory in an electric vehicle, which could affect the growth of such vehicles in the country.
SMEV said that the government should remove the discrepancy between the lithium ion battery separately and the factory’s factory-fitted battery tax rates, reducing the cost of owning long-term ownership. The GST rate is already 12 percent on the lithium-ion battery pre-installed in the electric vehicle, while selling it separately will cost 18 percent. There is a difference of 6 percent in this. The government should remove this discrepancy.