Union Budget 2019: Consumer electronic goods makers seek lower GST on large-screen TVs, air-conditioners and refrigerators

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

Press Trust of India June 19, 2019 15:40:03 IST
Union Budget 2019: Consumer electronic goods makers seek lower GST on large-screen TVs, air-conditioners and refrigerators
  • Companies such as Sony India and Panasonic feel that there is a need to boost demand in the consumer appliances sector

  • Firms are seeking exemption of basic customs duty on imported TV panels that are assembled here in India

  • At present, the GST on TVs with a screen size above 32 inch attract 28 percent GST while it is 18 percent for 32 inch and below

New Delhi: Consumer electronic goods makers have sought to lower the GST rate to 12 percent 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.

Besides, these firms are seeking exemption of basic customs duty on imported TV panels that are assembled here in India to give a necessary push to the market.

"I am really hoping that the government does something. It is in our wish list," Sony India Managing Director Sunil Nayyar told PTI when asked if the company was hopeful of reduced GST rates on big-screen television sets.

Union Budget 2019 Consumer electronic goods makers seek lower GST on largescreen TVs airconditioners and refrigerators

Representational image. News18.

He further said that lower GST rates will ultimately help the government increase its revenue as more and more people will tend to buy such goods. "It's a win win. It's up to them as how they structure this discussion and come to an appropriate thought process. We are expecting and hopeful. Let's see."

Echoing similar views, Manish Sharma, president and CEO, Panasonic India and South Asia, said the goods and services tax (GST) slabs for large appliances and electronics items must be reduced.

"Our expectation from the Union Budget 2019 is to see reforms that drive consumption and improve consumer demand. The consumer appliances industry witnessed a flat growth last year, and we urge the government to bring in positive policies to lend support and drive growth in the sector," he said.

Sharma further said 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.

Reducing GST rates for TVs above 32 inches to 18 percent will not only benefit the industry but also the end-consumers, he added.

At present, the GST on TVs with a screen size above 32 inch attract 28 percent GST while it is 18 percent on those with size of 32 inch and below.

Also, Sharma sought exemption of basic customs duty on imported television panels "to give the necessary thrust to the market.

"Similarly, we urge the government to lower GST rates for efficient products like air conditioners and refrigerators with a rating of 4 star and above, bringing them under the 12 per slab," he added.

Earlier, industry body Consumer Electronics and Appliances Manufacturers Association (CEAMA) had also asked the government to reduce GST rate on air-conditioners from 28 percent to 18 percent and had advocated development of component ecosystem to promote local manufacturing.

"The industry has witnessed low to no growth in the last three years. Indeed, TV, AC, and Microwaves declines in 2018. Revival of growth, therefore, is the biggest ask that industry has from government," had said President CEAMA and Business Head and EVP, Godrej Appliance Kamal Nandi.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Don't wait for last day to file returns, cautions Goods and Services Tax Network Chairman
News & Analysis

Don't wait for last day to file returns, cautions Goods and Services Tax Network Chairman

Despite the GST Council giving a one-month extension in filing returns under the new indirect tax regime, businesses should start uploading invoices much earlier, says Goods and Services Tax Network (GSTN) Chairman Navin Kumar.

Telecom department keeping a close eye on the impact of 18 percent GST
News & Analysis

Telecom department keeping a close eye on the impact of 18 percent GST

The telecom department is closely watching the impact of the proposed 18 per cent Goods and Services Tax (GST) on the industry, Communications Minister Manoj Sinha said here on Thursday.

December GST collections rise to Rs 86,703 cr from Rs 80,808 cr in November, govt says
Business

December GST collections rise to Rs 86,703 cr from Rs 80,808 cr in November, govt says

After registering a fall for two consecutive months, the total revenue collections under Goods and Services Tax (GST) for the month of December 2017 (received in December 2017/January up to 24 January,2018) rose to Rs 86,703 crore till 24 January 2018, the finance minsitry said on Thursday