ICEA urges government to reduce GST on ACs and TVs from 28% to 18%

Indian Cellular and Electronics Association seeks GST cut on air conditioners and television sets to improve affordability, boost domestic sales and enhance India's competitiveness in global markets

The Indian Cellular and Electronics Association (ICEA) has urged the government to rationalise the Goods and Services Tax on air conditioners and television sets from the current 28 per cent to 18 per cent to stimulate domestic demand, affordability and global competitiveness.

 

“Air conditioners and televisions are no longer luxury goods. They are essential consumer durables that define the modern quality of life. Keeping them in the highest GST slab alongside sin goods is inconsistent and counterproductive,” ICEA chairman Pankaj Mohindroo said.

 

According to ICEA, India shipped 12.1 million television units in 2024, of which smart TVs accounted for 91 per cent. The average household television size preference is between 43 and 50 inches. Still, since it is taxed at 28 per cent, it discourages production and slows down formal adoption of these products, ICEA said.

   

“A uniform 18 per cent rate for all TVs would directly curb grey channels, boost formal sales and incentivise domestic display manufacturing,” ICEA said.

 

Similarly, though air conditioner penetration in India is barely 8 per cent, the product is taxed at 28 per cent, higher than the 8–15 per cent tax charged on these products globally, the industry body said.

 

“This makes ACs costlier by 8–10 per cent, constraining adoption. Correcting GST to 18 per cent will unlock domestic demand and establish India as a competitive hub for global exports,” ICEA said.