Lower GST Makes ACs and TVs More Affordable Amid Festive Season Surge
IIE DIGITAL DESK : The GST Council, in its meeting on September 3, 2025, approved a sweeping overhaul of GST slabs. The multi-tiered structure of 5%, 12%, 18%, and 28% has been replaced with a simpler two-slab system of 5% and 18%, effective from September 22, just in time for Navratri and the festive shopping season .This restructuring brings significant relief to buyers of consumer durables. Air conditioners, large-screen televisions, refrigerators, and washing machines—previously taxed at 28%—will now attract a reduced GST rate of 18% . However, it's important to note that a follow-up fact-check clarified that the GST reduction applies to dishwashing machines, not washing machines, as originally reported; the official documents list only dishwashers under the cut, not laundry machines .
The impact on prices is expected to be tangible. Industry executives suggest typical savings of ₹1,500 to ₹2,500 per unit for air conditioners, translating to about 8–9% overall reduction for appliances like ACs, TVs, and dishwashers . Some estimates even indicate potential discounts in the range of ₹3,500 to ₹4,500 per appliance for certain models .
This sweeping tax rationalisation appears timed to boost consumer sentiment during the festive season. Companies in the consumer durables segment—the likes of Voltas, Blue Star, and Godrej — are optimistic, expecting a surge in sales as reduced prices make high-efficiency and premium models more accessible .
The broader economic outlook also shows promise. According to Reuters, these GST reforms, combined with other fiscal policy changes, may lift GDP growth by 100–120 basis points over the next 4–6 quarters. Stocks of consumer-focused firms are already rallying in anticipation .
This measure is part of a larger GST rationalisation strategy launched ahead of the festive period. From groceries to personal care items, and now appliances, the GST Council is simplifying rates significantly. Essentials like toothpaste, shampoo, soaps, and small cars have also benefited from reduced taxation, aiming to curb inflation and revive consumer demand .
The GST Council's September 3 decision to streamline GST slabs to just two rates (5% and 18%) brings visible tax relief to aspirational durable goods like ACs, TVs, and dishwashers (though not washing machines, as clarified later). With the festive season around the corner, consumers and industry alike stand to gain—the policy promises immediate savings and potentially stronger economic momentum through the months ahead.
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