Shopping Tips after GST 2.0: There has been a change in GST before the festive season shopping. Now there will be only two slabs 5% and 18%. This change will come into effect from 22 September i.e. the beginning of Navratri. In such a situation, the question arises, should we shop now or wait till 22 September?
Should I wait till September 22 for shopping?
According to experts, after the new GST is implemented, the new rate will be visible in the invoice itself. Retailers cannot charge customers at the old rate. The government has also clarified that the benefit should reach the consumer directly, so that if GST is reduced by 10%, the difference in prices is also visible. Experts say that the old rates will be applicable on all sales till September 21. Sales will be on the new slab from September 22.
Why might waiting while shopping be beneficial?
If you are planning a big purchase like a car, AC or smart TV, waiting for a while can be a smart move. According to experts, an AC worth Rs 20,000 is currently selling with 28% GST. After September 22, GST will be reduced to 18%. If the distributor has invoiced at 28% and you buy after September 22, they may have to bear a loss of 10% unless the manufacturer covers the difference. Therefore, waiting on non-essential items can be beneficial.
How much impact will the new GST have on daily use items?
Demand for everyday needs like bread, butter, mGSTilk or life-saving medicines is more inelastic. The impact of the new GST slab on these will be slightly less, because people cannot stop shopping. For example, ghee, dry nuts, condensed milk, sausages, namkeen will now come under 5% GST, down from 18%. If the MRP earlier included 12% GST and now it has come down to 5%, then you can buy the product for Rs 105 instead of Rs 112. In this way, the benefits of small savings will reach you immediately.
Is this a challenge for stock and distributors?
Distributors and retailers are now thinking about stocking up. People will wait till September 22 for non-essential products. The demand for essential products does not stop, so there will be no major impact on their price and availability. Companies will have to update IT systems, POS machines and billing software.
What should be your shopping strategy after the new GST?
- If you are making a big purchase and your item is expensive, then wait till September 22.
- Shop for everyday items first, because it will not have much impact on your income and savings.
- Keep in mind that retailers can give discounts after the reduction in GST. MRP is always the maximum retail price.
Disclaimer:
This article is for general information only. Consult an expert before doing any finance, tax or shopping.
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