Skip to content
Search

Latest Stories

Government likely to slash GST rates on white goods

Home appliances like washing machines, refrigerators, air conditioners among other items are set to become cheaper as the government is reportedly considering slashing down the GST rates on white goods.

At present the above mentioned items come under the 28% tax slab of the Goods and Services Tax Bill.


The move to cut down the rates has been aimed to push the demand in sector amid the slowdown.

A senior official was quoted by Economic Times saying that the move is expected to help push demand in the sector, amid repeated complaints of a slowdown and excess capacity.

The official added that a part of the reason for a lower levy on restaurants was also to free women from household chores, which begin with packing lunch for children in the morning and extend till late at night.

Meanwhile, contrasting to the above buzz, eating out isn’t getting cheaper post the reduced goods and services tax (GST) rate of 5% for air-conditioned (AC) and non-AC restaurants that got implemented last week.

That’s because not every restaurant company is passing on the benefits of reduced tax rate to customers, at least not completely.

For instance, during the 18% GST regime, a regular Latte at a McCafe coffee chain in Mumbai was priced at Rs 142 including 18% GST i.e. Rs 120.34 (base rate for the coffee beverage, as per invoice) + Rs 10.83 (9% CGST, as per invoice) + Rs 10.83 (9% SGST, as per invoice). With the tax rate coming down to 5% now, the price of this coffee beverage should have reduced by Rs 15.60 to Rs 126 i.e. Rs 120.34 (taking the same base rate for the coffee beverage) + Rs 3 (2.5%, CGST) + Rs 3 (2.5%, SGST).

That’s because McCafe continues to charge its customers, the same amount of Rs 142 for a regular Latte at its outlets. How does Westlife Development Ltd (WDL), the master franchisee of McDonald’s Restaurants in west and south India, achieve this?

Instead of keeping the base price of the coffee beverage at Rs 120.34, the quick service restaurant (QSR) chain increases its price to Rs 135.24 and adds 5% tax – Rs 3.38 (2.5% CGST) + Rs 3.38 (2.5% SGST) – taking the total to Rs 142 and pocketing the difference of Rs 16 (Rs 142 – Rs 126).

When inquired, WDL spokesperson said, “The government has brought down GST from 18% to 5%, but there has been a removal of input tax credit (ITC). Due to this, our operating costs have gone up by 10-12%. However, at McDonald’s, we believe in giving the best value to our customers, and have passed on the benefits wherever we could.”

More For You

Record-breaking data breach

The data is spread across 30 different datasets

iStock

Record-breaking data breach exposes 16 billion credentials, raising global cybersecurity concerns

A massive new cybersecurity report has revealed what experts are calling the largest data breach in history, involving over 16 billion login credentials. The records, uncovered by researchers at Cybernews, appear to come from a variety of sources and have raised alarm bells across the tech and cybersecurity industries.

Unprecedented scale of exposure

The data is spread across 30 different datasets, with individual troves containing between tens of millions and more than 3.5 billion credentials each. In total, the exposed records add up to 16 billion, a staggering number that equates to more than two credentials for every person on Earth.

Keep ReadingShow less
leaders discussed the new Defence Cooperation Accord between the UK and Bahrain,

The leaders discussed the new Defence Cooperation Accord between the UK and Bahrain, aimed at deepening joint military training and naval ties.

Crown Prince of Bahrain's website

UK and Bahrain strengthen defence and investment ties

PRIME MINISTER Keir Starmer met Crown Prince Salman bin Hamad Al Khalifa, prime minister of Bahrain, at Downing Street on Thursday.

A Downing Street spokesperson said the leaders discussed the UK-Bahrain relationship and welcomed the UK becoming a full member of the Comprehensive Security Integration and Prosperity Agreement (C-SIPA), a trilateral pact with Bahrain and the United States focused on regional security.

Keep ReadingShow less
Swiss banks

Funds held in customer accounts by Indian clients rose by 11 per cent in the year to 346 million Swiss francs (£3.14m) and accounted for about one-tenth of overall funds.

iStock

Indian funds in Swiss banks triple to £3.1bn in 2024

INDIAN money in Swiss banks more than trebled in 2024 to 3.5 billion Swiss francs (£3.1bn), attributed to a rise in funds held through local branches and other financial institutions, annual data released by Switzerland's central bank showed on Thursday (19).

However, funds held in customer accounts by Indian clients rose by 11 per cent in the year to 346 million Swiss francs (£3.14m) and accounted for about one-tenth of overall funds, the report showed.

Keep ReadingShow less
Bank of England

In a statement, the central bank pointed to a recent rise in energy prices, citing the 'escalation of the conflict in the Middle East' as a factor.

Getty Images

Bank of England holds interest rate at 4.25 per cent

THE BANK OF ENGLAND (BoE) kept its key interest rate at 4.25 per cent on Thursday, citing persistent inflation and rising risks from US tariffs and the conflict between Israel and Iran.

The decision, which was widely expected, came a day after the US Federal Reserve also left its interest rates unchanged, pointing to continued inflation and slowing growth in the United States.

Keep ReadingShow less
Pakistan army-backed firm joins race for national airline
FILE PHOTO: Passengers board a Pakistan International Airlines (PIA) flight at the airport in Kabul on September 13, 2021. (Photo by AAMIR QURESHI/AFP via Getty Images)

Pakistan army-backed firm joins race for national airline

TWO of Pakistan's leading business groups and a company backed by the powerful military will bid for the country's ailing national carrier, a divestment the government hopes will kickstart the privatisations of state-owned enterprises.

The sale of Pakistan International Airlines will be the first major privatisation for around two decades, with the sale of loss-making state-owned enterprises a condition of last year's $7 billion (£5.5bn) bailout by the International Monetary Fund.

Keep ReadingShow less