IT Industry welcomed the government’s move to bring – ACs, washing machines, refrigerators,etc – in the lower GST slab, saying that it will pass on the benefit to the consumers.
The move will also help the domestic manufacturing, and help in creating more employment opportunities, said Consumer Electronics and Appliances Manufacturers Association (CEAMA).
The industry was demanding a lower GST rate on white goods since July last year, when GST was implemented.
All Delhi Computers Dealers Association based in Largest IT Hub of Asia in Nehru Place welcomed this reduction in GST Rates.
Swaran Singh, General Secretary, ADCTA expressed, “We welcome the steps taken by the GST committee to the reduction in GST slab of products in 28% to 18%. Proposed changes in categories of IT are TFT/TV up to 27″, Lithium Battery (linked with Powerbank & Laptop Batteries). But still, we are waiting for the notification to confirm the affected categories and products as there is ambiguity in size, 25″ or 27″. Secondly, Slab of Laptop Batteries is in confusion. Third, awaiting news on Projectors, are they still under 28% or Govt. has brought down that also in 18%.”
Nidhi Markanday, Director, Intex Technologies says “The move by the Government to cut GST in product segments like Televisions (below 68 cm), Washing Machines, Refrigerators and even Powerbanks from 28% to 18% is indeed a very welcome and much awaited move.
“The rate cut will benefit consumer durable companies like us to pass on the benefit to the consumers for the upcoming festive season. This move brings cheer to both consumers and players like us. We will definitely re-work the pricing and announce the price drop it well in time for the festive season.”
“The cut of 10% in the GST in the television segment is of particular interest to us as we are a market leader and have a good acceptability in the 22 and 24 inch size segment. The rate cut will benefit consumers in Tier 3 and 4 towns to a great extent and make the televisions more affordable for them.”
“The rate cut for Powerbanks will also definitely increase its demand as it has become a necessity today and will particularly benefit us as we are a leader in this product category, she further added”
Yogesh Bhatia, MD, S. G. Corporate Mobility shared his view “We welcome this move by the Government as the rejig will make electronic products less expensive and would provide further impetus to the ‘Make in India’ initiative. The revision in GST rates would reduce the prices of Mobile phones and Accessories (Powerbanks, USB Cables, etc) by up to 10% which will be passed on to the consumers. Now we can make our products available to the customers at an even more reasonable price”
Avneet Singh, CEO and Director, Super Plastronics Pvt Ltd expressed “As we know the Government has cut GST rates on more items including refrigerators, washing machines and televisions up to 26 inches. It’s a great move by the Government, but we are surprised by the televisions rates.
“We feel that they should be revised to 18%, because it is a necessary product in today’s digital age. My question is that if refrigerators and washing machines both have been included under the 18% bracket, why not televisions beyond 32 inches? Television is for the masses and reaches everyone across the country.”
“The Government could have expanded the horizon till 50 inches as both 32 and 40 inches are the highest selling SKUs in India. Currently in India there are 197 million TV’s used at home and the penetration rate of televisions for both 32&40 inches is much higher than that for fully automatic washing machines and double door refrigerators, which cleary indicates that television is not just a luxury product anymore. There will be an increase of 15-20% of price of panels in the month of August and in that case it will be a real boost if the GST rates are cut down to 18% otherwise it will affect the consumers pocket in the upcoming festive season, he added”