Affordable tech items, such as televisions and air conditioners, poised for reduced prices following Indian GST overhaul, spurring hopes of growth resurgence in smaller cities.

The Indian government has announced a significant GST overhaul, aiming to stimulate growth in various sectors, particularly the consumer technology industry and the renewable energy sector.

In a welcome move for the electronics industry, the tax on TVs and monitors, which previously ranged from 18% to 28%, will now be uniformly set at 18%. This decision will make these appliances more affordable, unlocking domestic demand and potentially spurring demand during the coming festival season.

The reduction of GST on air conditioners and televisions from 28% to 18% is especially welcome, as it is anticipated that the growth of air conditioner penetration in India will be high. Coverage is projected to reach nearly 40% in India by 2050, driven by demand in rural areas. The new GST regime in India has also reduced the tax on air conditioners and dishwashers from 28% to 18%.

The consumer technology industry in India is expected to see a significant decrease in prices for various items due to the GST overhaul. Companies such as Hindustan Unilever, Nestle India, Blue Star, Voltas, Maruti Suzuki India, AKAI India, and many others in the consumer technology industry are expecting tax relief due to the GST restructuring. The AKAI India CEO, Anurag Sharma, stated that the GST overhaul will make electronic items like televisions, air-conditioners, and other appliances significantly more affordable for millions of Indian households.

The GST overhaul simplifies the structure and creates predictability, laying a stronger foundation for growth in the electronics industry. Preeti Bajaj, MD & CEO at Luminous Power Technologies, highlighted the benefits of the GST reform on renewable energy and key energy storage solutions. Hindustan Power Chairman Ratul Puri also welcomed the nudge to green energy by reducing the GST rate.

The reduction of taxes on renewable energy devices to 5% makes clean energy and storage solutions more affordable and accessible for households and businesses. This transformative move is expected to further enhance renewable energy capacity and accelerate the adoption of green technologies. ICEA Chairman Pankaj Mohindroo expressed hope that the government will consider the rationalisation of GST on smartphones and laptops from the current 18% to 5%.

The GST overhaul in India is likely to provide a fresh impetus to the coming festival season sales and spur demand in smaller cities. It is being widely welcomed in India as it is expected to positively impact the consumer technology industry. The new 40% slab in the GST overhaul is restricted to a few items in India, while the four-tier tax slabs for indirect taxes have been done away with, and a simplified two-tier slabs at 5% and 18% have been introduced. The government of India has also reduced the GST rate on lithium-ion batteries, which power various electronic devices, from 28% to 18%.

In conclusion, the GST overhaul in India is a significant step towards making consumer technology and renewable energy more affordable and accessible for the masses. The simplified tax structure is expected to boost growth in the electronics industry and accelerate the adoption of green technologies, ultimately benefiting both consumers and businesses in India.

Affordable tech items, such as televisions and air conditioners, poised for reduced prices following Indian GST overhaul, spurring hopes of growth resurgence in smaller cities.