LUDHIANA: The decision of GST Council on Saturday to reduce GST on several items including electronics, paints, cosmetics etc from 28% to 18% is being hailed by city traders dealing in these items. According to the businessmen, the tax reduction will not only help boost sales, but also benefit customers the most who will be passed on the benefit in case of price reduction of these items by the manufacturers. The new rate of tax on these items will be applicable from July 27, and it is likely that until then, the sales of these might see a temporary slump.According to Aman Kapila, secretary of Paint Dealers and Manufacturers Association, Ludhiana: “We were demanding the tax cut for a long time now, as paint and allied items are almost like essential commodities and it is in the best interest of the consumer that the rate of tax on these is kept nominal. The new rate of 18% will be applicable from July 27, and we are hoping that along with providing relief to consumers, it will also boost our sales as well.”Speaking to TOI, Harpal Singh Sidhu, a leading electronics dealer, said: “Reduction of GST on electronics is a great move indeed, and it will prove to be very beneficial for our customers. We will pass on the rate cut to consumers whenever manufacturers do the same. However, the GST Council should also think about reducing the GST on LED televisions upto 32 inches size, instead of 28 inches decided in its meeting.”Speaking to TOI, Saurabh Dhawan, a cosmetics dealer, said: “We welcome the decision of GST Council to reduce the rate of tax on perfumes and cosmetics to 18%, which is 10% lesser than the present rate of tax. Once the new rates come into effect, the prices will be adjusted accordingly by the companies manufacturing these products, and we are hoping our sales pick up.”

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