Smart TVs to See Prices Drop by 8-10%

Rapid Summary

• GST Rate Reduction: Starting September 22, the GST rate on LED and LCD smart TVs beyond 32 inches will reduce from 28% to 18%, resulting in a price drop of 8-10%.
• Consumer Savings: For example, buyers of a ₹35,000 smart TV will save ₹3,500 in GST. Smart TVs of smaller sizes (32 inches and below) remain taxed at 18%.
• Industry Reaction:

– Sony India predicts a demand increase by 5-10%, focusing on premium large-screen TVs during the upcoming festive season.
– Hisense India projects sales growth by up to 25% due to affordability-driven upgrades.
– SPPL sees this move as boosting digital inclusion and innovation while benefiting manufacturers and retailers across the smart TV ecosystem.
– LG anticipates greater sales across larger size categories due to improved consumer sentiment.

• Consumer Trends: Indians are increasingly shifting toward larger screen sizes for better OTT viewing experiences, aided by no-cost EMI and cashback options.

Indian Opinion Analysis

The reduction in GST for smart televisions highlights the government’s intention to make technology more accessible while driving consumption growth across electronics. This tax revision is likely to lower prices significantly, especially during India’s festive season when consumer spending traditionally peaks. the forecasted uptick in demand-especially for premium models above 43 inches-is indicative of evolving preferences as households prioritize entertainment hubs for OTT content consumption.

From an economic lens, the move could stimulate production activity among domestic electronics manufacturers while strengthening distribution channels-from logistics providers down to retail outlets. However, critical implementation will lie in ensuring that retailers pass on these reduced costs fully onto consumers.

in broader terms, such reforms can encourage digital adoption within middle-income groups through affordability measures like flexible EMIs or discounts-helping integrate technological advancements into wider demographic segments over time.

Read more here:
https://www.thehindu.com/topic/smart-tv-gst-reduction