LED TELEVISION MANUFACTURERS DEMAND GST RATE REVISION AMID HIGH INPUT COST
News: According to The Economic times, TV manufacturers have requested the government to revise GST rate from 28% to 18% on TV size above 32% to support demand revival and offset a sharp jump in open cells prices (up 35% YTD).
View: Open cell constitutes 60-60% cost of manufacturing LED TV. In the last six months, Open cell prices have increased to 35%. TV manufacturers are forced to take the price hike of ~10% to offset higher input cost. According to industry body, price hikes in the low demand scenario will keep overall volume offtake under check. Hence, the industry body is seeking a rate revision on the LED TV size above 32 inches from 28% to 18%. We believe lowering the GST rate will help in demand revival in rural regions, which were otherwise impacted by higher inflation.
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