Good news for Indian consumers as the government has just announced a major relief for people. The government has said it is cutting Goods and Services Tax (GST) rates on major electronic items under new reforms. Reduction in tax rates on electronic items comes just before the festive season, which may spur increased demand for electronics.
About GST 2.0:
The government earlier was levying a standard GST rate on electronic items which was 22 percent. However, post the announcement of reforms, the new rates levied will be about 5 percent and 18 percent. This is a great relief for consumers and businesses alike as the retail prices of many consumer appliances will come down ahead of the festive season and sales.
“We welcome the recent GST reforms as a decisive step towards creating a more level playing field and fostering growth within the consumer electronics and appliances industry. The rationalization of GST rates to a uniform 18% on products such as TVs, monitors, air conditioners, and dishwashers is a particularly positive move. It not only enhances affordability for Indian households but also simplifies compliance and operational efficiency for manufacturers and brands like Cellecor,” Ravi Agarwal, Co-Founder and Managing Director, Cellecor India said.
Which goods get cheaper?
The Goods and Services Tax Council, chaired by Finance Minister Nirmala Sitharaman, announced these sweeping cuts in tax rates on multiple electronic appliances. GST rates of 5 and 18 percent announced will be effective from the 22 of September, covering four major categories of electronics: air conditioners, televisions above 32 inches (including LED and LCD models), monitors and projectors, and dishwashing machines.
“We welcome this GST reduction on smart TVs, as it not only makes technology more affordable for consumers but also drives digital inclusion across households. This progressive step will boost demand, encourage innovation, and support the growth of India’s electronics industry. This step will not only benefit consumers but also strengthen the entire value chain of the smart TV ecosystem – from manufacturers to retailers – giving a boost to India’s economy,” Avneet Singh Marwah, CEO SPPL, Exclusive Brand Licensee of THOMSON in India noted.
How much price change is expected?
Televisions (above 32 inches, which includes LED and LCD TVs), will see GST go down to 28% from 18%. Small screen television sets were already at the GST tax rate of 18%. Monitors and projectors will also be applicable for the reduction to 18% from 28%. Dishwashing machines will also have a similar tax exemption reducing 10% from 28% to 18%.
“The recent GST revisions are a progressive step for India’s technology ecosystem. Rationalizing taxes on consumer electronics, critical components like silicon wafers, and logistics will help reduce the cost of hardware that powers modern surveillance infrastructure, making advanced security solutions more accessible to businesses, housing societies, and urban centers,” Aditya Khemka, Managing Director, CP PLUS mentioned.
What is the government’s stance?
The GST Council described the cuts as part of a broader effort to simplify the tax structure and reduce burdens on consumers. During a media briefing after the GST Council Meeting, Finance Minister Nirmala Sitharaman said that the reforms are aimed at “rationalising rates and boosting demand.”
