Festivals are not just about celebration, they are also about feelings and spending, whether that means buying a gold chain for someone special or picking up a new smartphone for your sibling. But this year, there is something new you should be aware of -- GST 2.0. It changes how much tax you pay on various things. Being aware of it will help you save money when shopping this festive season.
GST on jewellery
If you’re planning to buy gold jewellery, there’s good news. The GST rates remain unchanged, 3% on the value of the metal and 5% on the making charges. This implies that there won’t be any extra tax during festive seasons.
Multiple taxes and extra fees were a concern before GST came in. GST makes pricing more transparent and uniform across India, and comparing prices is comparatively easier now. When you buy jewellery, always ask for a proper GST invoice. It should clearly show the price of the metal and the making charges separately. Also, check for a BIS hallmark. This shows that your jewellery is real and pure. These small checks protect your money and make sure you get what you pay for.
GST changes for other gifts
Today, gifts go beyond gold and clothing. People often choose gadgets, home appliances, and even vehicles. With GST 2.0 reducing taxes on many such items, you could end up paying less in taxes this festive season. For example, GST on TVs, air conditioners, and refrigerators has dropped from 28% to 18%. Two-wheelers now have 18% GST instead of 28%. Small cars with petrol engines up to 1200cc or diesel engines up to 1500cc also have 18% GST now.
But luxury cars still have a high GST rate of 40%. Mobile phones stay at 18% GST with no changes. Buying gift vouchers would be a better solution instead of physical items. You get more flexibility as GST is applied only when the voucher is used. Plus, there are additional discounts during festive sales that have a lower GST impact, helping you save even more.
How to plan your festival spendings
Understand how GST 2.0 works so that it can help you make better shopping decisions. Before making a purchase, check the total cost to avoid unexpected charges on your bill. Whether it’s gold for tradition or a gadget for everyday use, plan your spending wisely.
Simple tips to keep in mind:
· Learn the GST rules before you shop
· Plan your purchases in advance or during the sale/discount periods
· Make purchases that fit into your budget, that do not hamper your financial goals
This festive season, let’s celebrate with joy while making smart, well-planned purchases under the new GST rules.
The article is authored by Nehal Mota, co-founder & CEO, Finnovate
