ICEA Calls for GST Cut to 18% on Air Conditioners and TVs to Boost Affordability

New Delhi, August 27, 2025: The India Cellular & Electronics Association (ICEA) has appealed to the government to reduce the Goods and Services Tax (GST) on air conditioners and televisions from the current 28% to 18%, citing affordability and domestic competitiveness concerns.

In a press release, ICEA emphasized that air conditioners and televisions are no longer luxury goods but essential household appliances, and taxing them at the highest GST slab alongside sin items is counterproductive. “Rationalizing GST to 18% will make these products more accessible for millions, expand domestic demand, and lay the foundation for global competitiveness,” said Pankaj Mohindroo, chairman of ICEA.

The association highlighted that air conditioner penetration in India is only around 8%, one of the lowest globally. High taxation makes these appliances 8-10% more expensive, limiting adoption and hindering domestic manufacturing growth. Similarly, televisions—particularly larger smart TVs—face restrictive taxation under the 28% GST slab, discouraging formal sales and fueling grey markets.

ICEA noted that lowering GST on these products will align them with other household appliances such as refrigerators, washing machines, and microwaves, which are currently taxed at 18%. The move is expected to benefit middle- and lower-income families, increase access in rural areas, and promote scale production in the domestic electronics sector.

Mohindroo added that GST rationalization could replicate the success seen in India’s mobile manufacturing boom and contribute to the nation’s $500 billion electronics manufacturing vision by FY31.

With the government preparing next-generation GST reforms before Diwali, ICEA hopes that air conditioners and televisions will be included in the rationalization exercise, ensuring affordability, boosting demand, and strengthening India’s electronics ecosystem.