Reduction in GST Rates Could Lead to Price Drop on Electronic Appliances like TVs, Air Conditioners; Here's the Entire List.
The Indian government's recent announcement of GST rate cuts is set to bring a wave of positivity for the electronics sector, particularly during the upcoming festive season.
The festive season is known for capturing almost one-fifth of the annual sales, and this year, consumers stand to benefit even more due to the tax reduction. The revised GST rates for various electronic devices will be implemented starting from October 2025.
The GST reform aims to simplify the tax system and reduce costs on daily consumer goods, including electronics. The highest 28% tax slab, which affected cars and electronic goods significantly, has been abolished as part of the reform.
The reform extends beyond electronics to various sectors such as essential goods, healthcare, education, and farm machinery, providing good relief for the industry.
Several electronic items that were taxed at 28% will now fall under the 18% GST slab. This change is anticipated to reduce the prices of appliances like air conditioners, televisions above 32 inches (including LED and LCD models), monitors, and projectors.
The GST reform is expected to have a significant impact on the value terms of sales during the festive season, potentially leading to a growth of 9 to 10% in the electronics sector. The simplified tax system now consists of two slabs: 5% and 18%.
The announcement comes at an important time ahead of the festive season, and the change is expected to positively impact the industry, benefiting it significantly. The GST reform is expected to benefit consumers as well, with lower prices on electronics and a more streamlined tax system.
The GST reform is not limited to just electronics but also includes a wide range of other sectors. This comprehensive approach to tax reform is expected to have a positive impact on the growth of the electronics sector during the festive season.
