The ICEA has requested the centre to reduce the GST rate on air conditioners and television sets from 28% to 18%. This modification is sought to boost domestic demand, increase affordability, and enhance global competitiveness.
ICEA chairman Pankaj Mohindroo cited that Air conditioners and televisions are essentials for consumers that specify the modern quality of life. It is not consistent and counterproductive if it is to be kept in the highest GST slab rates alongside sin goods.
ICEA, India, shipped 12.1 million television units in 2024, of which smart TVs accounted for 91 per cent. The average preferred household television size is between 43 and 50 inches. It deters production and slows down the formal adoption of these products, as a 28% tax is applied to them.
An 18% rate for all TVs would curb grey channels, boost formal sales and incentivise domestic display manufacturing, ICEA cited.
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Likewise, the adoption of air conditioners is barely 8%. There is a 28% tax on it, which is higher than the 8-15% tax levied on such products worldwide, the industry body specified.
The cost of ACs from this shall surge by 8–10 per cent, constraining adoption. Rectifying GST to 18 per cent will make domestic demand and establish India as a competitive hub for global exports, ICEA expressed.
