Media and Entertainment sector gets a shot in the arm as GST on premium TVs slashed to 18%

New Delhi: The GST Council’s 56th meeting on Wednesday delivered a breakthrough for the television and electronics industry, slashing tax on sets larger than 32 inches from 28% to 18%, effective September 22, the first day of Navratri. 

The move, announced by Finance Minister Nirmala Sitharaman, brings all television sizes under a uniform 18% slab and is expected to make larger, connected TVs significantly more affordable for Indian households.

Until now, TVs above 32 inches were taxed at 28%, a rate that kept premium LED, Smart and 4K models out of reach for much of India’s middle class. The new slab is set to lower prices by thousands of rupees, triggering upgrades from smaller screens to feature-rich models. 

For the consumer electronics sector, the cut also smooths supply-chain efficiencies by removing the tax differential that had categorised bigger TVs as luxury goods. Manufacturers will benefit from the input tax credit mechanism, improving profitability and encouraging fresh investment in production capacity.

The most immediate upside is expected in the Media and Entertainment sector, where larger smart TV penetration will accelerate the adoption of Connected TV (CTV) viewing. 

With built-in internet and streaming capability, smart TVs serve as a direct gateway to OTT platforms such as Netflix, Amazon Prime Video and Disney+ Hotstar, alongside traditional cable and DTH services, both of which attract 18% GST.

Industry executives point out that higher CTV adoption directly expands the advertising canvas. 

With households shifting to streaming on larger screens, brands will have more opportunities to deliver targeted, interactive campaigns through OTT and digital video, all billed under the 18% GST slab. 

A recent industry analysis noted that advertising revenue, the lifeline of broadcasters and digital platforms, will get a further push as CTV viewership scales up.

For consumers, the benefit is immediate. A 40-inch smart TV priced at Rs 22,000 earlier attracted Rs 6,160 in tax at 28%, pushing the final price to Rs 28,160. Under the new 18% rate, the GST burden drops to Rs 3,960, reducing the final cost to Rs 25,960, a saving of Rs 2,200. 

For a price-sensitive market like India, such cuts can meaningfully influence buying decisions during the festive season. The timing is no accident. Coming just weeks before Diwali, the rate cut is expected to fuel household upgrades and push premium TV sales during the peak consumption period. 

For brands, agencies and broadcasters, the reform sets the stage for a more ambitious festive AdEx play. Lower hardware prices translate into higher media penetration, expanding the base of connected households that marketers can target with digital video, programmatic and addressable advertising.