GST rate cut on Active LED screens: a game-changer for DOOH and display industry

The Government of India’s announcement on September 22, 2025, to slash the Goods and Services Tax (GST) on Active LED Screens from 28% to 18% marks one of the most significant reforms for the digital display and out-of-home (OOH) advertising industry in recent years. The move is expected to make LED screens more affordable, boost demand across multiple sectors, and create a level playing field for organised players. 

For years, the higher GST slab of 28% was a deterrent to widespread adoption of Active LED Screens, raising project costs and slowing the pace of innovation. By bringing the rate down to 18%, the government has effectively opened the door for faster digital transformation across advertising, entertainment, retail, and corporate environments. 

Rajesh Shah, Director and CFO, PixelStar Vision Pvt Ltd, calls the development a “game-changer.” He explains, “This move will not only make LED displays more affordable for consumers but also boost demand, driving growth and innovation in the sector. I expect increased adoption across various applications, from DOOH advertising, entertainment, and corporate segments of the market. I’m optimistic about the positive impact of this reform on our business and the industry as a whole.” 

For the Digital OOH segment in particular, the rate cut directly impacts both cost structures and adoption cycles. Sanket Rambhia, Managing Director, Xtreme Media, highlights the practical benefits: “The reduction of GST on Active LED displays from 28% to 18% is a major boost for the DOOH industry. It reduces project costs, aligns input and output tax credits, and shortens payback periods, thereby accelerating adoption of digital screens across India. Importantly, it will also curb unfair practices where some players were charging lower GST rates earlier – creating a level playing field for organised, compliant companies.” 

The change is also being hailed as a much-needed catalyst for innovation and investment in India’s LED display industry. Prashant Srivastava, Head of International Marketing, AET Display Pvt Ltd, believes this move will accelerate the pace of technological upgrades: “This GST reform is more than tax relief, it’s a catalyst that will accelerate the adoption of advanced LED display technologies in India, making display innovation and products more accessible to the market. It surely will drive investment, and position the Indian LED display industry for a faster and much awaited growth.” 

The consensus across the industry is clear: lowering the GST rate is not just a cost-cutting measure, but a structural reform that strengthens India’s digital display ecosystem. By easing affordability and improving business viability, the reform is expected to drive adoption in tier-1 and tier-2 cities alike, scale up digital OOH networks, and foster innovation in how LED technology is used across industries. 

With festive season spending already building momentum and brands seeking high-impact digital canvases, the timing of this reform could not be better. The LED display industry is poised to enter its next phase of growth – more inclusive, more innovative, and more aligned with India’s digital future.