Industry leaders in India’s electronics and home appliance sector have welcomed the recent GST rationalisation, describing it as a landmark reform that will simplify taxation, enhance disposable incomes, and revive consumer demand. The government has reduced GST on key home appliances, including air conditioners, large-screen televisions, dishwashers, refrigerators, washing machines, vacuum cleaners, microwave ovens, and other household electronics, from 28 percent to 18 percent.

This move aims to make these products more affordable ahead of the festive season. GST rates for smartphones and laptops remain unchanged at 18 percent.

Pankaj Mohindroo, Chairman of the India Cellular & Electronics Association (ICEA), said the GST overhaul creates predictability and strengthens the foundation for growth. He added that the reduction on air conditioners and televisions was a long-standing industry demand and would unlock domestic demand, boost consumption, and support India’s electronics manufacturing ecosystem.

Jitin Makkar, SVP and Group Head, Corporate Sector Ratings at ICRA Limited, noted that retailers and e-commerce platforms are expected to leverage the tax cuts through promotions, amplifying the effect on consumer demand. While supply chain challenges persist due to import dependence on certain components, the move is expected to improve affordability and revive subdued consumption.

Arjun Bajaj, Director of Videotex, highlighted that the GST cut on televisions would encourage consumers to upgrade to larger screens, particularly given the festive timing, making the decision even more impactful. Overall, the GST rationalisation is seen as a strategic measure to support discretionary spending, facilitate first-time purchases, and encourage product upgrades.