Key Points

New Delhi [India], August 27 (ANI): The India Cellular & Electronics Association (ICEA) has urged the government to reduce the Goods and Services Tax (GST) on air conditioners and televisions from 28 per cent to 18 per cent. The appeal, made through a press release, argues that the move is essential to make these products more affordable and to strengthen India's manufacturing competitiveness.

The demand comes at a time when the government is working on next-generation GST reforms, expected before Diwali. ICEA has urged that air conditioners and televisions, which are increasingly seen as essential household appliances, be considered part of this exercise.

"Air conditioners and televisions are no longer luxury goods; they are essential consumer durables that define modern quality of life. Keeping them in the highest GST slab alongside sin goods is inconsistent and counterproductive. Rationalising GST to 18 per cent will make them affordable for millions, expand domestic demand, and create the foundation for scale-led global competitiveness," said Pankaj Mohindroo, chairman of ICEA.

The industry body pointed out that penetration of air conditioners in India stands at just about 8 per cent, one of the lowest rates globally. In comparison, many countries levy GST or similar taxes on these products in the range of 8-15 per cent.

The release noted that the current 28 per cent rate makes air conditioners costlier by nearly 8-10 per cent and limits wider adoption. A correction would not only unlock domestic demand but also help India build a competitive hub for exports.

Televisions, another key category, face a similar challenge. According to ICEA, India shipped 12.1 million units in 2024, with smart TVs accounting for 91 per cent of the sales. Household preferences are shifting toward larger screens between 43 to 50 inches. However, these models fall under the highest GST slab of 28 per cent.

The association warned that such taxation fuels grey markets, reduces formal sales, and discourages domestic manufacturing of display panels. Lowering the GST uniformly to 18 per cent, ICEA said, would help curb informal trade, promote scale production, and strengthen the domestic electronics ecosystem.

The release stated that the affordable pricing of air conditioners and televisions will benefit middle and lower-income families, while also expanding access in rural areas. It added that other consumer durables, such as refrigerators, washing machines, and microwaves, already attract an 18 per cent GST, and placing televisions and air conditioners in the same bracket would bring parity.

"GST rationalisation for air conditioners and televisions is essential to sustain affordability, stimulate domestic demand, and drive the next phase of India's electronics revolution. Just as supportive policies made mobiles a global success story, correcting GST across these key categories will anchor India's $500 billion electronics manufacturing vision by FY31," Mohindroo added.

- ANI