GST reforms to create strong momentum for consumer durables sector: Panasonic India Chairman

The Goods and Services Tax (GST) Council’s recent move to rationalise tax slabs is expected to give a significant push to the consumer durables industry, with Panasonic India Chairman Manish Sharma calling it a timely reform that will expand market access and drive demand.

“The rationalisation of GST on air-conditioners and televisions from 28% to 18% is a welcome reform that will directly benefit consumers, especially as we step into the festive season. With this reduction, products that were earlier seen as aspirational are now more accessible, allowing a larger section of households to upgrade to energy-efficient and connected appliances,” Sharma said.

The Council, in its September 3 meeting, scrapped the 12% and 28% slabs, retaining only 5% and 18%. As a result, air-conditioners, large-screen TVs, refrigerators and washing machines—all previously taxed at 28%—will now attract 18%. Items earlier under the 12% slab will shift to 5% or 18%, depending on the category. For consumers, this could mean a price reduction of ₹1,500 to ₹2,500 on an AC, depending on the model.

Sharma added that the GST changes, coupled with the government’s revision in the income tax slab exempting annual earners up to ₹12 lakh, will improve disposable incomes and consumer sentiment.

“Together, these reforms create a strong momentum for the consumer durables sector, driving higher demand across urban and emerging markets. At Panasonic, we believe this will accelerate penetration of modern appliances, improve quality of life for consumers, and in turn, contribute to India’s broader economic growth momentum,” Sharma added.

Industry executives believe the cut will not only drive higher volumes but also nudge buyers toward premium and energy-efficient models, which had seen slower penetration due to higher costs.

The reforms come ahead of the festive season, typically the peak period for durable sales.