GST cut to make TVs, ACs, and other appliances cheaper
What's the story
A wide range of consumer electronics, including large-screen televisions (TVs), air-conditioners (ACs), and dishwashers, is likely to see significant price cuts. The reduction is expected to be in the range of 8-9%, following a major 10% point cut in Goods and Services Tax (GST) rates. The move is aimed at making these aspirational products more affordable for consumers.
Price impact
Price drop expected for large-screen TVs
The price cut will translate into a net reduction of at least ₹2,000 for 43-inch TVs and up to ₹23,000 for 75-inch models. ACs and dishwashers are also expected to see a price drop between ₹3,500-4,500. Haier India president Satish NS called it an unprecedented move in the electronics category due to such a large government tax reduction.
Market response
Sales may take initial hit
Satish NS also said that sales are likely to take a hit until September 22 as consumers may delay their purchases. However, he is optimistic that this will be offset by pent-up demand later on. The price cuts are part of a larger effort by the GST Council to simplify the indirect tax structure and ease pressure on household budgets.