Customers buying television sets (up to 32-inches) could see a decrease in prices January 1 onwards. The GST Council today reduced the goods and services tax (GST) for television screens up to 32-inches from 28 to 18 percent.
Avneet Singh Marwah, CEO, SPPL (exclusive brand licensee of Thomson TV in India) said they will be reducing prices from January 1 by 8 percent. He said the next wish would be to have GST reduced for TVs up to 40-inches.
“This is good news for the market and sentiments will improve from now on. Further, this will help improve the penetration of television (up to 32-inches) in the market,” he added.
All television brands including LG, Samsung and Sony are expected to announce a price cut over the new few weeks.
Television makers had sought a reduction in GST for products up to 40-inches in this category. They had said televisions are no longer a luxury product.
In July 2018, televisions (up to 27-inches) that were earlier under 28 percent GST were brought down to 18 percent. The GST slab of 28 percent is the highest and is reserved for luxury products like high-end cars.
In the consumer durables space, air-conditioners are still taxed at 28 percent. This is because the GST Council is of the view that they are a luxury product.
A few dealers spoke to said this will boost New Year sales.
“All large television brands have offers for the first few weeks of the New Year. A tax cut will mean that customers will get additional benefit,” said the Mumbai zonal head of a consumer electronics firm.
TV makers were reeling under cost pressures due to 28 percent GST on one side and a rise in manufacturing costs on the other, due to rupee depreciation and fuel price increase. Panel costs were also hiked during the festive season.
A majority of the raw materials, including the panels for televisions, are imported from abroad.― Moneycontrol
