The recent next-gen reforms in Goods and Services Tax (GST) are set to boost sectors under the Ministry of Electronics and Information Technology, particularly consumer electronics and ICT hardware. The rate reductions will make essential products more affordable for citizens while strengthening domestic manufacturing, supporting MSMEs and start-ups, and advancing the goals of Digital India and Aatmanirbhar Bharat.
The Ministry of Electronics and IT said that the reduction in GST on air conditioners, dishwashers and large-screen televisions from 28 per cent to 18 per cent is expected to expand domestic demand while enhancing affordability for households. The Ministry said that this is likely to create stronger backwards linkages in components such as compressors, displays and semiconductors, and provide new opportunities for MSMEs engaged in plastics, wiring, cooling systems, LED panels and assembly services. The reforms also support localisation and reduce dependence on imports, with the GST cut on dishwashers additionally improving ease of living for households.
