New Delhi: In a major relief for consumers and a boost for the electronics and media industries, the GST Council on Wednesday slashed the tax rate on televisions above 32 inches from 28% to 18%. The move, effective September 22 — the first day of Navratri — aligns all television sizes under a uniform 18% slab.
Finance Minister Nirmala Sitharaman, announcing the decision, said the measure is expected to make larger Smart, LED, and 4K TVs significantly more affordable for Indian households. Until now, the steep 28% GST kept premium models out of reach for much of the middle class.
Cheaper TVs, Bigger Screens
The tax cut is likely to bring down prices by thousands of rupees, accelerating upgrades from smaller sets to larger, feature-rich smart TVs. For instance, a 40-inch model priced at ₹22,000 will now cost about ₹25,960 — nearly ₹2,200 less than before.
The festive timing is key. With Diwali spending around the corner, industry watchers expect the reform to trigger strong demand for premium models during the peak consumption season.
Boost to Manufacturing & Supply Chains
The decision removes a long-standing tax anomaly that classified bigger TVs as “luxury goods.” Manufacturers stand to benefit from streamlined supply chains, improved profitability via input tax credit, and fresh momentum for capacity expansion.
Fuel for Media & Advertising
The move is also expected to turbocharge India’s Connected TV (CTV) ecosystem. Affordable smart TVs with built-in internet access directly drive adoption of OTT platforms such as Netflix, Amazon Prime Video and JioHotstar, while cable and DTH remain under the same 18% GST slab.
For advertisers, this translates into a wider digital canvas. Analysts believe advertising revenues for broadcasters and OTT platforms will see a meaningful uptick as viewership migrates to connected devices.
Festive AdEx Play
For brands, agencies and broadcasters, the cut opens the door to an ambitious festive advertising surge. Lower hardware prices will expand the base of connected households, enabling sharper use of programmatic and addressable advertising.
With affordability, festive timing, and digital adoption aligning, the GST cut could reshape not just consumer electronics sales, but also India’s media and entertainment growth trajectory this season.
