Complete GST lifecycle on one platform Complete GST lifecycle on one platform
Hyper-automation Hyper-automation
Smart reports & recon Smart reports & recon
Accurate filing Accurate filing

Will GST Bring Down Prices? New Tax Rates Will Tell

Updated on: Jul 13th, 2021


3 min read

Updates from May 18th, 2017

Even though the final rates on goods and services will be known only by the end of this week, many manufacturers have already made their own calculations and are devising their future strategies based on these projections. Goods such as washing machines and air conditioners, which are currently taxed at 23-24% might get taxed under the highest bracket of 28%, thus increasing the tax incidence.

This follows the logic that goods that fall between two tax slabs will be taxed at the higher rate. While the government is trying its hardest to not increase taxes on articles of common use, many manufacturers expect that their tax burden might just go up a notch, post the July 1st deadline. On the other hand, a pick-and-choose policy will only increase the tax complexities in the new regime; something that the authorities wish to avoid.

The anti-profiteering clause and free flow of ITC may help bring down prices, but these policies will take a while to kick in, say experts.

As reported in Times of India

inline CTA
India’s Fastest and Most Advanced 2B Matching
Maximise ITC claims, use smart validations to correct your data and complete 2B matching in <1 minute

Quick Summary

Manufacturers adjusting strategies based on GST rate projections. Tax increase likely on goods like washing machines and air conditioners. Government aims to avoid increasing taxes on common use articles. Anti-profiteering clause may help reduce prices. Authorities want to prevent tax complexities in new regime.

Was this summary helpful?

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use


ISO 27001

Data Center


SSL Certified Site

128-bit encryption