Consumer electronic goods makers have sought lowering the GST rate to 12 per cent on appliances like large-screen televisions, air-conditioners and refrigerators, in their Budget wish list to the government. The consumer durables industry is of the view that these items are now household necessities and do not come under the luxury goods category anymore.
Companies such as Sony India and Panasonic feel that there is a need to boost demand in the consumer appliances sector and lower taxes can help manufacturers pass on the benefits to buyers. These firms are also seeking exemption of basic customs duty on imported TV panels that are assembled here in India to give a necessary push to the market. Sony India Managing Director Sunil Nayyar said that lower GST rates will ultimately help the government increase its revenue as more and more people will tend to buy such goods.
Manish Sharma, president and CEO, Panasonic India and South Asia, said that the consumer appliances industry witnessed a flat growth last year, and they urge the government to bring in positive policies to lend support and drive growth in the sector. He added that appliances such as TVs, refrigerators and air conditioners have evolved from being luxury items to household necessities, and it is important to create affordability to drive consumers demand.
GST on TVs with a screen size above 32 inch attract 28 per cent GST currently while it is 18 per cent on those with size of 32 inch and below.
Earlier, industry body Consumer Electronics and Appliances Manufacturers Association (CEAMA) had also asked the government to reduce GST rate on air-conditioners from 28 per cent to 18 per cent and had advocated development of component ecosystem to promote local manufacturing.
