Published on: Sept 05, 2025 08:03 am IST
GST rate cuts provide relief for households looking to purchase large appliances such as TVs, ACs, refrigerators, and dishwashers.
GST rate cut: The Goods and Services Tax (GST) Council has announced a revised two-tier structure with rates of 5% and 18%. Union finance minister Nirmala Sitharaman said the changes are part of a broader effort to simplify slabs and reduce the compensation cess. The revised rates will come into effect from September 22, lowering prices on a wide range of household goods and consumer electronics.
Under the new system, several high-value electronic items that were earlier taxed at 28% will now fall under the 18% bracket. This includes televisions, air conditioners, refrigerators, dishwashers, and washing machines. The decision is expected to directly bring down retail prices across stores and online platforms.
GST rate cut: Impact on mobile phones and laptops
For mobile phones, there is no change. The government has decided to keep the GST rate at 18%, the same as before. Smartphones will therefore see no reduction in price. Similarly, laptops will also continue to attract 18% GST with no relief announced in this category.
GST rate cut: Impact on televisions
Televisions are among the biggest beneficiaries of the GST rate cut. The tax rate has been lowered from 28% to 18%. According to the official notification, the items now falling under the 18% slab include:
- Television sets, including LCD and LED models
- Monitors and projectors without built-in reception apparatus
- Reception devices for television, with or without radio-broadcast or video recording features
- Set-top boxes for television
This is expected to significantly reduce the price of mid-range and premium TVs, especially larger-screen models that were heavily taxed under the earlier slab.
GST rate cut: Impact on air conditioners and dishwashers
Air conditioners and dishwashers will now attract 18% GST instead of 28%. Industry estimates suggest that buyers may save between Rs. 1,500 and Rs. 2,500 on average, depending on the model. This change is likely to drive higher sales in the upcoming festive season when demand for appliances traditionally peaks.
GST rate cut: Impact on other home appliances
Refrigerators and washing machines have also been shifted to the 18% tax slab. The reduced rate is expected to lower overall household appliance costs, making them more affordable for middle-class buyers.
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