Television manufacturers are pushing for a reduction in goods and services tax (GST) on TVs sized above 32 inches to 18% from 28% to offset a sharp rise in prices of open cell panels – the costliest part of LED TVs – imported from China. Prices of open cells, which are mostly imported from 4-5 suppliers in China, have shot up by over 35% for TV sizes above 32-inches, leading to about 10% rise in prices of large-sized TVs in India, industry officials said.
“We have been requesting the GST Council to streamline the GST rates for TVs from 28% to 18%. We believe this will actually sustain the demand and drive affordability,” said Ravi Shankar Chaudhary, secretary general of Consumer Electronics and Appliances Association (CEAMA) that represents Indian TV manufacturers. CEAMA representatives had met finance ministry officials in April to ask for a reduction in the GST rates for TVs above 32 inches to bring parity among all screen sizes, and drive affordability of large-sized TVs that is the most popular among urban and semi-urban consumers. The industry said the current GST rate for above 32-inch TVs is the highest globally.
An executive from the TV manufacturing industry said the finance ministry had said a year ago that the GST rates will be brought down to 18% if the industry manages to post a quarterly collection of above ₹1 lakh crore in GST.
The GST collection has been above ₹1 lakh crore for the past 8-9 months, but there has been no reduction in rates, the person added. Open cell is a part of LCD and LED panel without the backlight. India lacks the capacity to manufacture open cells and all open cells are imported at 5% basic customs duty from Chinese suppliers such as BOE, Innolux, and CSOT, industry executives said.
Source: The Economic Times
https://economictimes.indiatimes.com/industry/cons-products/electronics/tv-makers-want-gst-cut-on-large-sets-to-offset-high-price-of-key-component/articleshow/100775680.cms
https://economictimes.indiatimes.com/industry/cons-products/electronics/tv-makers-want-gst-cut-on-large-sets-to-offset-high-price-of-key-component/articleshow/100775680.cms
