Goods and Services Tax (GST) is an indirect tax that has replaced all other taxes in India. It is a comprehensive tax levied on the manufacture, sale, and consumption of goods and services. GST has been implemented to simplify the taxation system in the country and make it more transparent.
Wet grinders are an essential part of Indian households, especially in South India. These appliances are used to grind soaked rice, lentils, and other ingredients to make batter for various dishes like dosa, idli, and vada. The government has levied a GST on wet grinders, which has affected the prices of these appliances.
As per the GST laws, wet grinders are classified under Chapter 85 of the GST HSN code, which covers electrical machinery and equipment and parts thereof. The GST rate on wet grinders is 18%, which means that the GST charged on a wet grinder costing Rs. 10,000 would be Rs. 1,800.
The introduction of GST has had a significant impact on the prices of wet grinders. Earlier, wet grinders were taxed at different rates in different states, ranging from 5% to 14.5%. However, after the implementation of GST, the tax rate on wet grinders was fixed at 18% across all states.
This has resulted in an increase in the prices of wet grinders, as the tax rate has gone up. The manufacturers and sellers of wet grinders have to pay a higher amount of tax, which they pass on to the customers by increasing the prices of their products. As a result, the consumers have to bear the burden of the additional tax.
There are certain exemptions and concessions available on the GST on wet grinders. Small and medium enterprises (SMEs) with an annual turnover of up to Rs. 20 lakhs are exempted from paying GST. SMEs with an annual turnover between Rs. 20 lakhs and Rs. 75 lakhs can opt for the Composition Scheme, under which they have to pay a lower rate of tax.
Moreover, wet grinders used in hotels, restaurants, and catering services are taxed at a lower rate of 5% under GST. This is because wet grinders used for commercial purposes are considered as capital goods, which attract a lower rate of tax.
The GST on wet grinders has impacted the prices of these appliances. The introduction of GST has made the taxation system more uniform and transparent. However, the increase in the tax rate has resulted in an increase in the prices of wet grinders, which may have a negative impact on the consumers.
However, the exemptions and concessions available under GST provide relief to small and medium enterprises and commercial establishments. Overall, the GST on wet grinders is a step towards simplifying the taxation system in India and making it more uniform.
How to Check GST Registration Status - GST Application ARN Status
MOLASSES - GST RATES & HSN CODE 1703
How to apply for a pan card online?