On the size of televisions exceeding 32 inches, Television manufacturers are pushing for a reduction in goods and services tax (GST) to 18% from 28% to reduce the surge in the cost of open cell panels – the costliest part of LED TVs – that gets imported from China. There is a rise in prices of the open cells that get imported from 4 to 5 suppliers in China by over 35% for TV sizes exceeding 32 inches, rendering an approx rise of 10% in prices of large-sized TVs in India.
Ravi Shankar Chaudhary, secretary general of the Consumer Electronics and Appliances Association (CEAMA) stated that we urged the GST council to revise the GST rates for Television from 28% to 18%. We deemed that the same shall sustain the demand and engaged the affordability.
In April, CEAMA representatives would meet Finance ministry officials for seeking a reduction in the GST rates for the television of sizes more than 32 inches for drawing parity among all screen sizes and draw the affordability of the large-sized Television which is the most popular among urban and semi-urban consumers. The TVs above 32 inches would have the highest GST rate all over the world.
If the industry manages to post the collection made quarterly exceeding Rs 1 lakh cr in the GST then the rate shall get drawn down to 18%, a TV manufacturing industry executive stated to the finance industry in the former year.
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From the past 8 to 9 months the collection of GST would exceed Rs 1 lakh cr, however, there is no rate reduction, the person stated. The open cell is a part of the LCD and LED panel without the backlight. India does not have the capacity to manufacture open cells and all open cells are imported at a rate of 5% basic customs duty from Chinese suppliers like BOE, Innolux, and CSOT, industry executives expressed.
