The recent 56th GST Council meeting brought welcome news for TV lovers and the media industry alike. Finance Minister Nirmala Sitharaman announced that from September 22, all televisions larger than 32 inches will now attract just 18% GST instead of 28%. This makes premium LED, Smart, and 4K TVs far more affordable for Indian households and could reshape how people watch content on TV and OTT platforms.
Tax cut makes bigger TVs more affordable
As reported by Best Media Info, TVs above 32 inches were taxed at 28%, a rate that kept many premium models out of reach for India’s middle class. Industry experts said that the new GST slab would lower prices by thousands of rupees and encourage households to upgrade from smaller screens to feature-rich models.
For example, a 40-inch smart TV priced at Rs 22,000 earlier attracted Rs 6,160 in tax, making the final price Rs 28,160. Under the new 18% rate, the GST drops to Rs 3,960, cutting the final cost to Rs 25,960. That’s an immediate saving of Rs 2,200, a meaningful difference for a price-sensitive market.
Cut expected to boost consumer electronics sales
Tax cut would make large, connected TVs more affordable and accessible to households across India. The reform also smooths supply chains by removing the tax difference that had classified bigger TVs as luxury goods. Manufacturers will benefit from the input tax credit system, which could improve profitability and encourage fresh investment in production capacity.The timing is also notable, coming just weeks before Diwali, and is expected to drive festive season sales while encouraging families to upgrade their TV sets.
Larger TVs likely to increase OTT adoption
This move could accelerate Connected TV (CTV) viewing, as larger smart TVs with built-in internet and streaming capabilities serve as direct gateways to OTT platforms such as Netflix, Amazon Prime Video, and others.They added that as more households adopt these TVs, OTT platforms are likely to see a rise in viewership, which could support subscription growth. Streaming on bigger, high-quality screens was expected to become the new normal for many viewers.
More connected screens will drive advertising growth
As per the report, higher CTV adoption would not only benefit OTT platforms but also create new advertising opportunities. As more people stream content on larger screens, brands could deliver targeted and interactive campaigns. These ads, billed under the 18% GST slab, would be more appealing to both consumers and marketers.
GST cut expected to benefit OTT and media sector
The GST Council’s decision to reduce tax on premium TVs was likely to be a win-win for consumers, manufacturers, and the media sector. For the OTT industry, it could drive higher adoption of Connected TVs, increase viewers, boost subscriptions, and create stronger advertising opportunities. For families, this could mean a better viewing experience for movies, shows, and OTT content.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source timesofindia.indiatimes.com ’
