Last month, the GST Council brought down the tax rates on several general-used items like TV (below 26 inch), washing machines and refrigerators from 28 to 18 per cent. The industry was demanding a lower GST rate on white goods ever since the GST was rolled out.
The government is planning to increase import duties on consumer durables – a move that will make TV, washing machines and refrigerators costlier. The move is taken to bring down the import, boost the domestic manufacturing and create jobs which is what Prime Minister Narendra Modi wanted when he rolled out flagship ‘Make in India’ programme.
According to a report in the Economic Times, a panel headed by the cabinet secretary is looking at ways to reduce India’s import dependence.
In financial year 2018, India imported nearly USD 2 billion of finished televisions, washing machines, refrigerators, vacuum cleaners, digital cameras and mixer grinders. TV imports amounted to Rs 5,000 crore (USD730 million at current levels)- nearly a 10th of the total domestic market. These imports were rising at a fast pace, up 35 per cent in current year, the business daily reported.
“There are suggestions that consumer durables, like electronics and telecom, should be brought under the phased manufacturing plan (PMP) and import duties be raised on some finished products,” ET quoted a senior government official as saying.
Last month, the GST Council brought down the tax rates on several general-used items like TV (below 26 inch), washing machines and refrigerators from 28 to 18 per cent. The industry was demanding a lower GST rate on white goods ever since the GST was rolled out.
Earlier, Central Board of Indirect Taxes and Customs Chairman S Ramesh had said that the domestic industry had approached the government for protection. “We are looking into all the proposals that have come in,” he had said.
