GST 2.0 Reforms Slash Prices Of TVs, ACs, And More Ahead Of Festive Season

The Indian government has just announced a major cut in Goods and Services Tax (GST) under new reforms. This offers a big relief for Indians as the new GST rates will bring a reduction in the prices of electronics. The announcement comes just in time before the festive season kicks off. Here’s what’s getting cheaper under the GST 2.0 reforms. Also Read: Union Budget 2024: When and where to watch FM Nirmala Sitharaman speech live online

Which Electronics Get Cheaper?

The Goods and Services Tax (GST) Council, chaired by finance minister Nirmala Sitharaman, announced the next-generation reforms in its 56th meeting on Wednesday. The new GST reform scraps the earlier capped 12% and 28% tax slabs, retaining a two-slab tax structure of 5% and 18% with a demerit rate of 40% only for ‘sin’ goods or super luxury products. Also Read: India imposes a 28 percent tax on online gaming: Check details

The new rate changes will come into effect starting from September 22, the first day of Navratri. The tax reforms will cover four major categories of electronics, including air conditioners, televisions above 32 inches, monitors and projectors, washing machines, refrigerators, and dishwashers.

As for smartphones, they will continue to be retailed with 18% GST.

How Much Price Reduction Is Expected?

Televisions above 32 inches (including LED and LCD TVs) will see GST cut down to 18% from 28%, resulting in a net price reduction of at Rs 2,000 for 43-inch models and can go up to Rs 20,000 savings on 75-inch models. Smaller televisions (below 32-inch) were already taxed at 18% under the previous GST reforms. Monitor and projectors will also see a GST cut to 18% from 28%. Dishwashers and air conditioners will also be applicable for 18% GST, down from 28%, resulting in around Rs 3,500-4,500 price reduction.

What Industry Leaders Have To Say About GST 2.0?

“Timely implementation of these reforms ahead of the upcoming festival season will surely give a huge boost to consumption across categories, widen market access, and accelerate our collective journey towards a Viksit Bharat,” said Rajneesh Kumar, Chief Corporate Affairs Officer, Flipkart Group.

“The recent GST reform is a decisive move toward simplifying and streamlining the tax structure for the electronics industry,” said Rajeev Singh, Managing Director, BenQ India. “Notably, the reduction of GST rates on products such as monitors and projectors further eases costs for businesses and educational institutions, promoting wider adoption of digital technology solutions across India,” he added.

Pankaj Rana, Chief Executive Officer, Hisense India, says, “The government’s recent GST reforms on televisions and air conditioners come at a critical juncture. By reducing price barriers, these reforms enable a larger and more diverse consumer base, especially in emerging markets and Tier-2 and Tier-3 cities, to access high-quality, energy-efficient products.”

“By simplifying the tax structure into clear 5% and 18% slabs, these reforms are set to promote consumer savings and create more disposable income, delivering timely relief and positive sentiment ahead of the festive season,” notes Ravi Kunwar, VP and CEO, HMD India & APAC.