New Delhi, Sep 23 With GST rate rationalisation now a reality, the domestic electronics industry is witnessing a strong uptick with the onset of the festive season amid various online sales across e-commerce platforms, experts said on Tuesday.
The industry watchers welcomed the reduction of GST on air conditioners, televisions and dishwashers from 28 per cent to 18 per cent.
This long-standing demand of the industry will make appliances more affordable, unlock domestic demand, and boost consumption, which is vital for scaling India’s electronics manufacturing, said Pankaj Mohindroo, Chairman, ICEA.
“We also remain hopeful that the rationalisation of GST on smartphones and laptops from the current 18 per cent to 5 per cent will be considered in the future, given its potential to improve affordability and strengthen digital inclusion,” he mentioned.
With the GST rate cuts, consumer durable stores across the country witnessed a noticeable uptick in footfall.
“We saw a very strong uptick on the first day of the sale. The sentiments are positive across channels. One of the key trend we have observed that within electronics the purchase enquiries are spread across different product categories than skewing towards few, highlighting a strong consumer interest. We are anticipating a very strong festive season this year,” Tarun Pathak, Research Director at Counterpoint Research, told IANS.
The approval of GST 2.0 is a landmark reform in India’s tax journey.
The simplified GST structure, combined with festive season promotions, could also boost smartphone sales through attractive discounts.
“Lower taxes make devices more affordable, encouraging upgrades and replacements. With extra disposable income, consumers are likely to prioritise new purchases. Together, these factors could drive premium as well as value-for-money smartphone purchases,” Prabhu Ram, VP-Industry Research Group (IRG) at CMR, told IANS.
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