Are you wondering how we’ve been impacted by launch of GST?
Earlier, we had to collect only 14.50 % VAT / CST on our products. Now, it has almost doubled to the maximum rate of 28%. (Apparently, Govt. thinks art frames are a luxury and should be taxed the maximum… we strongly disagree with this; unfortunately, we could not do anything about this. Sorry.)
It’s not the only thing that’s affected our prices. The input raw material costs have also risen dramatically since the advent of GST. Print used to be taxed at 5%. Now, it’s at 12%. Frame materials used to be taxed at 14.50 %. But, now it’s 18%. Acrylic glass and backing boards used to be taxed at 5%. Now, this is taxed at 18%. Above all, courier companies increased their charges. It’s now taxed at 18%. As a result of all these, we are forced to hike prices by around 15 to 20%.
On 10th November 2017, 23rd GST council meeting decided to slash GST on art frames from 28% to 18%. Our new updated prices will be visible when these changes become effective from 15th November. Thank you.
It may sound like GST is bad for all of us. But there are some benefits to you as a customer.
The Benefits of GST to Customers
With the launch of GST, there are no multiple taxes on your purchase. Earlier, there used to be several hidden taxes applied on products and services. Such as excise duty, service tax, educational cess, Krishi Kalyan cess etc. Now they’ve either abolished or merged to one single tax.
What is more, the tax rate remains the same throughout the country. So, when you pay GST on our products, you are not paying tax to our state. Instead, the collected tax will go to the account of the respective state government from where you are buying from us.
For example, let’s say you are from Mumbai and bought a product from us. We’ll collect GST from you and remit to the central government GST system. They’ll later transfer that amount to Maharashtra’s tax account. That means, whatever purchases you make online, your local government benefits maximum! Earlier, that was not the case. The taxes were paid to the seller’s state.
So what this means: when you purchase online, your local Govt. gets the taxes. This improves their funds, and as a result, more money will be spent on infrastructure, transportation, education, hospitals, security, parks and other common amenities. Which means, you’ll be benefiting indirectly from the taxes you paid for your online purchases.
As a further convenience, now you can also claim tax input credit (if you are a business; and are buying from us for your business) while purchasing from us. Just add your GSTIN on the notes column during checkout.
Thank you for your kind cooperation.