The Goods and Services Tax (GST) Council has brought down tax rate on TVs with screen sizes of up to 32 inches to 18 per cent from 28 per cent.
Earlier, only up to 26 inches (68 cms) sized TVs had been put in the 18 per cent tax slab.
Consumers can look forward to about 8 per cent reduction in prices of 32 inches-sized LED TVs, which is a key segment in the category.
Avneet Singh Marwah, Director and CEO, Super Plastronics Pvt. Ltd, exclusive brand licensee of Thomson TV and Kodak TV in India, said, “This move will help in increase the penetration of LED televisions in the country. Even though we were expecting an 18 per cent GST drop in up to 40 inches TVs but nevertheless this move will certainly improve the consumers’ sentiment as 32 inches TVs are a mass product.”
In the past, the industry had urged the government to reduce GST rate to 18 per cent for upto 43 inches sized TVs. Currently, about 65 per cent of the TV market comprises of sizes ranging from 80 cm (32 inches) to 142 cm (43 inches), as per industry estimates.
Eric Braganza, President, Haier India said, “ While we are still working out the quantum of benefits that will be passed on to the consumers, prices of LED TVs of upto 32 inches, are likely to be reduced by about 8 per cent.” He added that the industry was also hoping for a GST rate reduction on air-conditioners.
The GST Council has also reduced tax rate from 18 per cent to 28 per cent on digital cameras and video camera recorders.