GST Slashes Tax on Electronics: ACs, TVs, Dishwashers Now 18% Instead of 28%

GST Slashes Tax on Electronics: ACs, TVs, Dishwashers Now 18% Instead of 28%

Last Updated Sep - 04 - 2025, 06:19 PM | Source : Fela News

GST Council cuts electronics tax to 18%; ACs, TVs, appliances become more affordable ahead of festive season.

In a landmark move aimed at rebooting demand during the festive season, the GST Council approved sweeping reforms to simplify tax slabs and lower costs on household electronics. From September 22, 2025, major appliance categories like air conditioners, televisions, dishwashers, refrigerators, and Washing machines will now move from the first 28% high tax bracket to consumer-friendly tax bracket of 18%. This change is part of the major improvement of GST, in which only two tax rates - 5% and 18% - will be implemented.

This change has come at the time of economic challenges occurring amidst American high tariff pressure. Finance Minister Nirmala Sitharaman is hoping to promote domestic consumption and promote manufacturing and retail areas on time by making everyday electronic items cheaper.

The industry has welcomed the move. In the upcoming festivals season, analysts estimate that the price of 8–9% on AC, large -screen TVs and other electronics will be reduced, which will save about ₹ 2,000 on 40‑IED TV and ₹ 23,000 on premium models, while AC and washing machine will save ₹ 3,500 - ₹ 4,500. This tax reform raises hope of increasing sales, encouraging technological upgrades and reviving dull demand.

Interestingly, mobile phones and laptops remain at the unchanged 18% bracket, despite industry calls to include them in the lower 5% slab. Still, for households, this GST rationalization brings tangible relief. Whether it’s upgrading to that dream smart TV or investing in energy-efficient appliances, this reform delivers both affordability and optimism making it a key moment in India's consumer-friendly economic shift.

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