ACs, TVs, washing machines to get cheaper as govt slashes GST charges

Buying a brand new AC or tv this festive season could now not pinch the pocket as a lot. The GST Council has introduced a sweeping rationalisation of tax slabs, bringing a set of client durables beneath a decrease fee.

In its September 3, 2025, assembly, the Council scrapped the 12% and 28% slabs, retaining solely 5% and 18%. That means merchandise like air conditioners, large-screen TVs, fridges and washing machines, which had been taxed on the steepest 28%, will now shift to 18%. Items earlier beneath the 12% slab may also migrate to five% or 18%, relying on class.

A festive-season booster
For households, this interprets into instant financial savings. According to a PTI report, an air-conditioner may now value Rs 1,500 to Rs 2,500 much less, relying on the mannequin. Industry executives imagine the reduce won’t simply drive volumes but in addition push patrons towards premium, energy-efficient fashions.

Also Read: GST Council slashes tax slabs to two to spur consumption; announces key measures for middle class

Blue Star MD B Thiagarajan had referred to as the proposal a “great move” which needs to be applied rapidly.

Panasonic Life Solutions India Chairman Manish Sharma had estimated a 6-7% discount in efficient costs, calling it “phenomenal.” Godrej Appliances’ enterprise head Kamal Nandi stated the reduce may raise AC penetration,which remains to be at simply 9-10% in India, and “improve the quality of life for many households.”

For tv makers too, the shift is well timed. Larger units above 32 inches, which had been taxed at 28%, will now entice 18%. “Brands could see 20% year-on-year growth,” PTI had quoted Avneet Singh Marwah, CEO of SPPL, which manufactures TVs beneath a number of world labels, as saying. He had stated that chopping GST on 32-inch sensible TVs to five% could be a “game changer,” particularly towards the unorganised sector.

Relief after a weak quarter
The choice comes as a breather for equipment makers, who confronted a tricky June quarter. An early monsoon and unseasonal rains hit cooling product gross sales, with listed gamers like Voltas, Blue Star and Havells reporting income drops of as much as 34% of their air-conditioning companies.

The Larger GST Journey
The transfer marks essentially the most vital rationalisation since GST was rolled out in July 2017 with 4 slabs-5%, 12%, 18% and 28%. With the brand new two-slab construction, policymakers say the tax will likely be easier, extra environment friendly, and higher aligned with its authentic promise of affordability and wider consumption.

The timing is just not unintended. Weeks in the past, Prime Minister Narendra Modi had promised a “Diwali gift” within the type of GST reform throughout his Independence Day speech. The Council’s choice has now delivered on that pledge, setting the stage for a consumption-led enhance simply because the festive season begins.