**Policy Summary: Next-Gen GST Reforms to Bolster India's Electronics Ecosystem**
**Date:** September 9, 2025
**Source:** Press Information Bureau (PIB), Delhi
**Overview:** The Ministry of Electronics and Information Technology (MeitY) has announced next-generation Goods and Services Tax (GST) reforms designed to stimulate demand, promote domestic manufacturing, generate employment, and enhance India's integration into the global electronics value chain. The reforms focus on reducing GST rates for various consumer electronics and ICT hardware items.
**Key Policy Changes:**
* **Consumer Electronics:** GST on air conditioners, dishwashers, and large-screen LCD and LED televisions reduced from 28% to 18%.
* **ICT Hardware:** GST on monitors and projectors (non-TV) decreased from 28% to 18%. GST on electric accumulators (non-Li-ion), including power banks, lowered from 28% to 18%.
* **Security Communication:** GST on two-way radios (walkie-talkies) reduced from 12% to 5%.
* **Renewable Energy:** GST on renewable energy devices and solar photovoltaic cells decreased from 12% to 5%.
* **Waste Management:** GST on composting machines reduced from 12% to 5%.
**Expected Impacts:**
* **Increased Affordability:** Lower GST rates will make essential products more affordable for consumers.
* **Domestic Manufacturing Boost:** The reforms are expected to strengthen domestic manufacturing, support Micro, Small, and Medium Enterprises (MSMEs), and reduce reliance on imports. This includes creating stronger backward linkages in components like compressors, displays, and semiconductors.
* **Digital Growth:** Affordable ICT hardware will support the IT sector, the startup ecosystem, and digital education initiatives.
* **Renewable Energy Adoption:** Reduced GST on renewable energy devices will lower the cost of renewable energy deployment at both household and industrial levels.
* **Enhanced Security:** Lower procurement costs for police, paramilitary, and defense forces due to reduced GST on walkie-talkies.
* **Sustainable Development:** Reduced GST on composting machines will encourage waste-to-energy solutions and composting technologies.
**Contact Information:** Dharmendra Tewari, Navin Sreejith
**Release ID:** 2164954
Key Entities Referenced
Ministry of Electronics and Information Technology: The Indian government ministry responsible for electronics and information technology.
Goods and Services Tax: An indirect tax used in India on the supply of goods and services.
Digital India: A campaign launched by the Government of India to ensure that Government services are made available to citizens electronically by improved online infrastructure and by increasing Internet connectivity.
Aatmanirbhar Bharat: A vision of making India a self-reliant nation.
MSMEs: Micro, Small and Medium Enterprises.
Dharmendra Tewari: Individual mentioned in the document.
Navin Sreejith: Individual mentioned in the document.
Delhi: National capital territory of India where the press release was issued.
Ministry of Electronics & IT
Next-Gen GST Reforms to Drive Demand, Promote
Localisation , Generate Jobs and Deepen Global
Value Chain Integration in Electronics Ecosystem
Lower GST on Air Conditioners, TVs, Monitors,
Projectors and Power Banks to Enable Digital
Growth and Affordable ICT Hardware
Posted On: 09 SEP 2025 4:20PM by PIB Delhi
The recent next-gen reforms in Goods and Services Tax (GST) are set to boost sectors under the Ministry of
Electronics and Information Technology (MeitY), particularly consumer electronics and ICT hardware. The
rate reductions will make essential products more affordable for citizens while strengthening domestic
manufacturing, supporting MSMEs and start-ups, and advancing the goals of Digital India and Aatmanirbhar
Bharat.
Boost to Domestic Electronics Manufacturing
The reduction in GST on air conditioners, dishwashers and large-screen televisions (LCD and LED) from 28
percent to 18 percent is expected to expand domestic demand while enhancing affordability for households.
This is likely to create stronger backward linkages in components such as compressors, displays and
semiconductors, and provide new opportunities for MSMEs engaged in plastics, wiring, cooling systems,
LED panels and assembly services. The reforms also support localisation and reduce dependence on imports,
with the GST cut on dishwashers additionally improving ease of living for households.
Enabling Digital Growth and Affordable ICT Hardware
GST on monitors and projectors (non-TV) has been reduced from 28 percent to 18 percent, which will lower
costs for educational institutions, offices and digital learning centres. Affordable ICT hardware will directly
support the IT sector, the start-up ecosystem and digital education. Similarly, the reduction in GST on electric
accumulators (non-Li-ion, including power banks) from 28 percent to 18 percent will make energy storage
solutions more affordable, improving access to backup power for digital devices and encouraging the adoption
of efficient energy systems in both homes and workplaces.
The reforms also strengthen internal security communication infrastructure. The GST on two-way radios
(walkie-talkies) has been brought down from 12 percent to 5 percent, thereby lowering procurement costs for
police, paramilitary and defence forces.
Promoting Renewable Energy and Sustainability
The GST on renewable energy devices and solar photovoltaic cells has been cut from 12 percent to 5 percent,
significantly reducing the cost of renewable energy deployment at both household and industrial levels.
Composting machines will also now attract GST at 5 percent instead of 12 percent, encouraging waste-to-
energy solutions and composting technologies to further the vision of sustainable and smart cities.
These reforms are expected to drive growth across multiple segments of India’s electronics and technology
ecosystem. By stimulating demand, reducing costs and creating opportunities for domestic manufacturers and
MSMEs, the GST rate cuts will generate employment, support localisation and deepen India’s integration intoglobal value chains.
***
Dharmendra Tewari\Navin Sreejith
(Release ID: 2164954)