Affordable to Expensive: Mobile Phones to Get Cheaper, Gold-Silver Duty Cut, Cylinders ₹300 Cheaper
Since July 1, 2017, when GST was implemented nationwide, budget changes have primarily involved adjustments in customs and excise duties, indirectly affecting the prices of goods. This time, the government reduced customs duty on seven items and increased it on two, making seven products cheaper and two more expensive.
Significant Price Changes Over the Past Year
Over the last year, gold and silver prices have risen by ₹13,000, while domestic gas cylinder prices have dropped by ₹300. During this period, the price of toor dal has increased by approximately ₹30 per kilo, with no significant changes in the prices of soybean oil, flour, and rice.
Mobile phones will be cheaper by 15%, gold and silver by 6%
| Product | cheap | |
| Phone and charger | 15% | Reduction in customs duty on mobile phone parts |
| Gold-Silver | 6% | Reduction in customs duty on gold and silver |
| Platinum | 6.4% | Reduction in customs duty on platinum |
| Cancer drugs | Duty removed from cancer drugs | |
| Electronic goods | Reduced duty on oxygen free copper | |
| Rare minerals | Reduced duty on 25 critical minerals | |
| Fish feed | 5% | Reduced custom duty on fish feed |
Plastic items will be expensive
| Product | expensive | |
| Telecom goods | 15% | Basic custom duty from 10% to 15% |
| Plastic product | 25% | Customs duty increased |
Understanding Taxation: Direct vs. Indirect Taxes
To comprehend whether a product is becoming cheaper or more expensive, one must first understand the tax system, divided into direct and indirect taxes:
- Direct Tax: Imposed on individuals’ income or profits, including income tax and personal property tax. The burden of direct tax falls on the person on whom it is levied and cannot be transferred to others. The Central Board of Direct Taxes (CBDT) administers it.
- Indirect Tax: Imposed on goods and services, including customs duty, excise duty, GST, VAT, and service tax. Indirect taxes can be shifted from one person to another. For example, a wholesale trader passes it on to retailers, who ultimately transfer it to consumers, impacting them directly. The Central Board of Indirect Taxes and Customs (CBIC) administers it.
90% of Products Under GST, Decisions by GST Council
Since 2017, about 90% of product prices depend on GST. All GST-related decisions are made by the GST Council, meaning the budget does not alter the prices of these products.
