CEAMA welcomes GST cut for TVs

Consumer electrocnics makers said Saturday the GST Council's move to reduce tax rates for mass-market TVs of up to 32-inch screens is commendable but a cut in high tax rate on air-conditioners could have benefitted the sector.

The Consumer Electronics and Appliances Manufacturers Association (CEAMA) said it was also hoping for a reduction in GST duty to 18 per cent on higher screen sizes of up to 40-42 inches, which are sold the most now.

"The drop in duty from 28 per cent to 18 per cent in TV segments up to 32-inch screen size is definetely a welcome move for the industry. 32-inch screen size has a mass market and a wide consumer base but unfortunately duty of AC was not dropped and this would have an impact on the industry," CEAMA President Kamal Nandi told PTI.

According to him, it will further propel demand in this category.

The GST Council in its meeting held on Saturday reduced tax rates on monitors and TV screens up to 32-inches
Echoing views, the President and CEO Panasonic India and South Asia, Manish Sharma, said, "The reduction in the GST slab rate from 28 per cent to 18 per cent on items such as TVs upto 32 inches, digital cameras and monitors is a forward step that will help boost the consumption of durable goods, especially at a time when the industry is experiencing a slow single digit growth."
Commenting on it, EY Tax Partner Abhishek Jain said, "The approval for GST rate reduction on various goods and services like televisions up to 32 inches, cinema tickets, digital cameras, etc, is quite welcome by both the industry and consumers."
"Recently the energy labels/standards has been increased on AC and import duty has also gone up and large part of the AC are still imported. The
overall cost of AC has moved up for this industry and tax reduction was necessary for this segment," he said adding" hope it should be considered into the next GST council meeting in January."