Jaipur, August 2025.

India Cellular & Electronics Association (ICEA), representing India’s premier electronics and mobile manufacturers, has urged the Government of India to rationalise GST on air conditioners and televisions from the current 28% to 18%. ICEA GST correction in these categories is vital to stimulate domestic demand, affordability, and global competitiveness.

In his Independence Day address, Hon’ble Prime Minister Shri Narendra Modi announced next generation GST reforms focused on rate rationalisation and relief for everyday items. ICEA urges that AC and televisions be treated as essential durables (common-man items) in this exercise.

“Air conditioners and televisions are no longer luxury goods they are essential consumer durables that define modern quality of life. Keeping them in the highest GST slab alongside sin goods is inconsistent and counterproductive. Rationalising GST to 18% will make them affordable for millions, expand domestic demand, and create the foundation for scale-led global competitiveness,” said Mr. Pankaj Mohindroo, Chairman, ICEA.

Why Correction is Urgent

·         Air Conditioners: India’s penetration is barely ~8%, among the lowest globally. Despite this vast untapped demand, ACs continue to face a 28% GST – far higher than the 8–15% range seen internationally. This makes ACs costlier by 8–10%, constraining adoption. Correcting GST to 18% will unlock domestic demand and establish India as a competitive hub for global exports.

·         Televisions: India shipped 12.1 million TVs in 2024, with smart TVs forming 91% of sales. The average household preference has shifted to 43–50 inches, yet these sizes are penalised with 28% GST. This fuels grey markets, discourages scale production, and slows formal adoption. A uniform 18% rate for all TVs would directly curb grey channels, boost formal sales, and incentivise domestic display manufacturing.

A National Priority

Correcting GST on these products will deliver a double dividend: it will ease the burden on consumers while directly sustaining India’s manufacturing base. Affordable ACs and TVs will broaden access for households and rural users, while rising domestic demand will anchor production growth. This step is vital for scaling towards the Hon’ble Prime Minister’s reform agenda, achieving the USD 500 billion electronics manufacturing vision by FY31, and advancing Digital India through universal access to modern consumer appliances.

Broader Impact

·         Affordability & Inclusion: Lowering GST will directly benefit middle- and lower-income households.

·         Parity with Other Durables: Refrigerators, washing machines, and microwaves – all taxed at 18% – are comparable essentials.

·         Boost to Manufacturing & Exports: Higher demand drives economies of scale, the foundation of global competitiveness.

·         Alignment with Reforms: Supports GST rationalisation, slab reduction, and long-term sustainability.

“GST rationalisation for air conditioners, and televisions is essential to sustain affordability, stimulate domestic demand, and drive the next phase of India’s electronics revolution. Just as supportive policies made mobiles a global success story, correcting GST across these key categories will anchor India’s $500 billion electronics manufacturing vision by FY31,” added Mr. Mohindroo.