In a landmark move towards simplifying the tax structure and easing the financial burden on citizens, Prime Minister Narendra Modi in his Independence Day address this year, announced the next generation GST reforms. The new tax rates will be implemented from Monday. Today, we will take a look at the potential impact of these reforms on Electronics and Solar Devices.

The Government has announced a big relief for the citizens by making a significant tax reduction on Electronics and Solar Devices. The tax rate on devices like Air Conditioners, TV, and dishwashers has been slashed down to 18 per cent from the earlier 28 per cent. Along with that, the GST on monitors and projectors has been brought down to 18 per cent slab. This move will strengthen the digital economy, foster innovation, and support the start-up ecosystem.

Similarly, the tax rates on Renewable Energy Devices like Solar Panels and photovoltaic cells has also been reduced to 5 percent slab from the previous 12 percent slab. This reduction in taxes will reduce installation costs at household and industrial levels, ensuring access to clean and sustainable power. Talking to Media, a resident of Pune, Maharashtra said that these reforms will benefit everyone, including dealers, shopkeepers and consumers.

This rationalisation under the Next Generation GST Reforms will stimulate demand for electronic and solar devices, thereby increasing the affordability of essential technologies for citizens. The new reforms will come into effect from Monday onwards.