GST Cuts On Electronics, ICT Hardware To Boost Manufacturing & Affordability

2025-09-10 02:15:36

(MENAFN- KNN India) New Delhi, Sep 10 (KNN) The recent Goods and Services Tax (GST) reforms are set to provide a significant boost to industries under the Ministry of Electronics and Information Technology (MeitY), particularly consumer electronics and ICT hardware.

The rate reductions aim to improve affordability for consumers, strengthen domestic manufacturing.

The GST on air conditioners, dishwashers, and large-screen televisions (LCD and LED) has been reduced from 28 percent to 18 percent.

Officials expect the cuts to expand household demand and generate stronger backward linkages in components such as compressors, displays, and semiconductors.

MSMEs engaged in plastics, wiring, cooling systems, LED panels, and assembly services are likely to benefit, while reduced reliance on imports will support localisation.

The tax on monitors and projectors (non-TV) has also been lowered from 28 percent to 18 percent, a move expected to reduce costs for schools, offices, and digital learning centres.

Similarly, the GST on electric accumulators (non-lithium-ion), including power banks, has been brought down from 28 percent to 18 percent, making energy storage solutions more accessible for households and workplaces.

Two-way radios (walkie-talkies) now attract GST of 5 percent instead of 12 percent, lowering procurement costs for police, paramilitary, and defence forces.

The GST on renewable energy devices and solar photovoltaic cells has been cut from 12 percent to 5 percent, which is expected to reduce the cost of solar deployment for households and industries.

Composting machines will also attract a lower GST rate of 5 percent, down from 12 percent, encouraging waste-to-energy solutions and supporting smart city initiatives.

By stimulating demand, reducing costs, and creating opportunities for MSMEs and start-ups, the changes are projected to generate employment, strengthen domestic manufacturing, and deepen India's integration into global value chains.

(KNN Bureau)

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