From TV to fridge, tech firms like Samsung slash prices after GST rate cut

LG, Panasonic and Godrej Consumers have already announced a reduction in prices ranging from 7-8%

Welcoming the government's decision to slash Goods and Services Tax (GST) rates on over 50 items, including refrigerators, washing machines and small televisions, several consumer electronics companies, including Samsung, have promised that they will pass on the full benefits to the consumers.

The new prices will be applicable from July 27, Samsung India said in a statement.

"Samsung is a consumer-centric company. We are happy to extend full benefits, that is 7.81+ per cent of GST rate reduction to all our consumers," said Rajeev Bhutani, senior vice-president, consumer electronics, Samsung India.

"We believe it will fuel the demand for consumer electronics products now and in the ensuing festival season," Bhutani said.

Last week, the GST Council brought down tax rates to 18 per cent from 28 per cent on 15 items, including vacuum cleaners, washing machine, 68 cm (27 inch) TV, fridge, laundry machines, paints, hand dryers, food grinders and varnishes.  

As per the GST notification, the new duty slabs is effective from Friday.

Extending the benefits to the consumers, LG, Panasonic and Godrej Consumers have already announced a reduction in prices from 7 to 8 per cent. 

The decision could also boost India's mobile phone industry as lithium-ion batteries are among the items listed for tax reduction.

"The reduction of GST slab on lithium-ion batteries used in mobile phones from 28 per cent to 18 per cent will certainly prove as a good boost to the mobile phone industry as it would improve the penetration and affordability of the product in smaller towns across the country," said Sudhir Kumar, CEO of domestic smartphone firm Tambo Mobile.

Domestic consumer electronic brand Intex Technologies also welcomed the move.

"The move by the government to cut GST in product segments like televisions (below 68 cm), washing machines, refrigerators and even power banks from 28 per cent to 18 per cent is indeed a very welcome and much-awaited move," said Nidhi Markanday, Director, Intex Technologies.  

"The rate cut will benefit consumer durable companies like us to pass on the benefit to the consumers for the upcoming festive season. This move brings cheer to both consumers and players like us. We will definitely re-work the pricing and announce the price drop it well in time for the festive season," Markanday said.