Revolutionary GST Reforms Boost India's Consumer Electronics Sector
Dixon Technologies Chairman Sunil Vachani welcomes recent GST reforms, highlighting a reduction from 28% to 18% on consumer electronics, such as LED TVs and ACs. The change promises increased affordability and market penetration. The reform, aimed at boosting diverse sectors, also reduces GST on essential goods to a 5% slab.
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In a significant move anticipated to invigorate the consumer electronics market, the recent Goods and Services Tax (GST) reforms have been described as 'path-breaking' by industry leader Sunil Vachani, Chairman of Dixon Technologies. These reforms include slashing GST on products like LED televisions and air conditioners from 28% to 18%.
Vachani predicts this change will enhance affordability, thereby boosting sales and market penetration, which currently rest at a mere 20% for LED TVs and 12% for ACs. 'These reforms are transformative, likely increasing consumption and transforming India into a global manufacturing nucleus,' he noted.
The comprehensive GST reform package, revealed by Finance Minister Nirmala Sitharaman, adjusts tax rates on essential goods and appliances, with some items now taxed at just 5%. This reform is anticipated to alleviate costs across households and various sectors, marking an extensive fiscal shift ahead of the festive season.
(With inputs from agencies.)
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