The Ministry of Electronics and Information Technology (MeitY) said the Goods and Services Tax (GST) Council’s decision to reduce rates on key electronics and appliances will provide a “dual win”, making products more affordable for consumers while strengthening India’s domestic electronics manufacturing ecosystem.
At its 56th meeting, the Council slashed GST from 28% to 18% on air conditioners, dishwashers, and televisions (LCD, LED), while also extending the benefit to monitors, projectors (non-TV), and electric accumulators (non-lithium-ion, including power banks).
According to MeitY, the GST cut on ACs and large-screen TVs is expected to stimulate consumer demand, expanding the overall market size. The cut will also create stronger backward linkages in components such as compressors, displays, and semiconductors.
The rate will also expand opportunities for MSMEs engaged in plastics, wiring, cooling systems, LED panels, and assembly services besides supporting localisation efforts, thereby reducing import dependence.
The ministry also highlighted that reducing GST on dishwashers would enhance ease of living, while cuts on monitors and projectors would lower costs for educational institutions, offices, and digital learning centres, strengthening ICT adoption and the startup ecosystem.
Similarly, the reduction on electric accumulators will make energy storage solutions more affordable, improving access to backup power for digital devices and encouraging wider use of efficient energy systems in households and workplaces.
MeitY said the measures align with the government’s broader push to scale domestic manufacturing, increase value addition, and deepen component-level ecosystems in India’s electronics sector.
The GST cut on air conditioners will provide major relief to appliance makers such as Blue Star, Voltas, and Havells, which had been facing deferred purchases as consumers waited for the tax reduction, analysts said.
Similarly, lowering GST on televisions above 32 inches is expected to revive demand in India’s $12-billion TV market ahead of the festive season. Analysts noted the move could accelerate upgrades to larger screens and premium technologies like QLED and mini-LED, offering a boost to an industry that has been grappling with sluggish sales.
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