Makers of consumer electronic goods in their expectations from the budget are demanding lowering of GST rate on large-screen televisions, air-conditioners and refrigerators to 18%. This the companies have done as these goods have become necessities and are no longer luxuries.
And the much needed revival in demand from the sector can be to an extent achieved by passing on the GST rate cut benefit to consumers. Also, the firms are seeking exemptions on customs duty on imported TVs to revive the struggling market.
I am really hoping that the government does something. It is in our wish list," Sony India Managing Director Sunil Nayyar told PTI when asked if the company was hopeful of reduced GST rates on big-screen television sets.
He further said that lower GST rates will ultimately help the government increase its revenue as more and more people will tend to buy such goods. "It's a win win. It's up to them as how they structure this discussion and come to an appropriate thought process. We are expecting and hopeful. Let's see."
At present, the GST on TVs with a screen size above 32 inch attract 28 per cent GST while it is 18 per cent on those with size of 32 inch and below.
During the last year, the industry had been witness to just flat growth and the industry players have thus been seeking policies that push up demand in the sector.
"Similarly, we urge the government to lower GST rates for efficient products like air conditioners and refrigerators with a rating of 4 star and above, bringing them under the 12 per slab," added Manish Sharma, president and CEO, Panasonic India and South