New Delhi, September 9:
The Government’s latest round of Goods and Services Tax (GST) reforms is set to provide a strong push to India’s electronics and ICT hardware ecosystem, with rate cuts aimed at driving affordability, expanding domestic demand and strengthening local value chains.
Under the new framework, GST on air conditioners, dishwashers and large-screen LCD/LED televisions has been slashed from 28% to 18%. Industry observers say this will not only make these products more accessible for households but also expand backward linkages in compressors, displays, wiring, semiconductors and assembly services — opening up fresh opportunities for MSMEs and component manufacturers.
Similarly, the reduction of GST on monitors and projectors (non-TV) from 28% to 18% is expected to benefit schools, offices and digital learning centres. Power banks and other non-Li-ion accumulators will also become cheaper as tax rates fall from 28% to 18%, supporting India’s digital adoption and energy backup needs.
In a boost to security forces, GST on two-way radios has been lowered from 12% to 5%, cutting procurement costs for police, paramilitary and defence. Renewable energy players will also gain as GST on solar PV cells and renewable energy devices has been reduced from 12% to 5%, while composting machines will now attract just 5% GST.
Officials said the reforms are designed to reinforce Digital India and Aatmanirbhar Bharat, while promoting localisation, reducing import dependence and creating new jobs across electronics manufacturing. By stimulating demand and enabling cost competitiveness, the tax cuts are expected to deepen India’s role in global electronics value chains.