GST Slab- India Cellular and Electronics Association (ICEA), the apex body of mobile phone and electronic equipment manufacturers, has appealed for immediate reduction of GST on air conditioners and televisions. ICEA has urged to reduce the current 28% GST on these to 18%. According to ICEA, GST correction in these categories is necessary to boost domestic demand and global competition. This demand has been made at a time when major changes are being made in the GST tax slab.
What did ICEA say?
ICEA urged the Indian government to treat ACs and televisions as common man’s goods. These are no longer luxury goods. Putting such items in the highest GST slab is inconsistent and unfavorable. Regarding air conditioners, ICEA said that its reach in India is barely 8%, which is the lowest globally.
Despite this, 28% GST is being levied on ACs, which is much higher than the international rate of 8-15%. This makes ACs 8-10% more expensive, making it difficult for people to buy them. Making GST 18% will increase domestic demand and establish India as a competitive hub for global exports.
Talking about television, India sold 1.21 crore TVs in 2024, of which 91% were smart TVs. The average household preference has moved towards 43-50 inch TVs, yet these sizes attract 28% GST. Earlier, ICEA had requested to keep mobile phones and its components in the five percent GST slab reserved for essential goods.
PM Modi announced GST reform
Let us tell you that this time in his address to the nation on Independence Day, Prime Minister Narendra Modi has announced to give the gift of GST reform to the people by Diwali. Since then, speculations have increased regarding the rates of GST. It is being estimated that now GST will have two rates instead of four – 5 percent and 18 percent. At the same time, the rate of 12 percent will be abolished and instead of the highest rate of 28 percent, a rate of 40 percent will be kept which will be applicable on harmful goods like alcohol.