GST Reforms Boost Electronics and Tech Sectors in India
The Indian government has rolled out exciting next-generation reforms in the Goods and Services Tax (GST) system, promising a big lift for the consumer electronics and Information and Communication Technology (ICT) hardware industries. These changes aim to spark higher demand, fuel domestic manufacturing, empower MSMEs and startups, and push forward initiatives like Digital India and Aatmanirbhar Bharat. The Ministry of Electronics & IT shared this update in a recent statement.
One of the standout moves? The GST rate on air conditioners, dishwashers, and large-screen televisions—like LCD and LED models—drops from 28% to 18%. This slash makes these gadgets more affordable for everyday households, driving up demand across India. As a result, it strengthens supply chains for key components such as compressors, displays, and semiconductors. MSMEs specializing in plastics, wiring, cooling systems, LED panels, and assembly now get fresh opportunities to grow and thrive.
These GST reforms also promote localisation, cutting down on import reliance and making life easier for families with handy appliances like dishwashers.
In the education and office space, monitors and projectors (non-TV types) see their GST reduced from 28% to 18%. Schools, workplaces, and digital learning centers will benefit from lower costs, making ICT hardware more accessible. This directly fuels the IT sector, boosts startups, and enhances digital education efforts in India.
Energy storage gets a boost too. Electric accumulators (non-lithium-ion, including power banks) now face 18% GST instead of 28%, making backup power solutions cheaper. Homes and offices can more easily adopt efficient energy systems for their digital devices.
Security takes a step forward with the GST on two-way radios (walkie-talkies) falling from 12% to 5%. Police, paramilitary, and defence forces will enjoy reduced procurement costs, strengthening India’s internal security communication infrastructure.
Renewable energy fans, rejoice! GST on solar photovoltaic cells and renewable energy devices drops from 12% to 5%, slashing deployment costs for households and industries alike. This move accelerates India’s shift towards clean energy.
Even composting machines benefit, with GST now at 5% down from 12%. It encourages waste-to-energy solutions and composting tech, aligning with the dream of sustainable and smart cities across the country.
Overall, these GST rate cuts promise to supercharge India’s electronics and technology ecosystem. They stimulate demand, lower costs, create jobs, support domestic manufacturers and MSMEs, and help integrate India deeper into global value chains. It’s a win for Aatmanirbhar Bharat and Digital India, setting the stage for innovation and growth.
