GST 2.0: How Air Conditioners, Refrigerators, TVs Will Get Cheaper From Today

India's Goods and Services Tax (GST) system is entering a new era with the rollout of GST 2.0, effective September 22. The GST Council has simplified the tax structure into three main slabs: 5% for essentials, 18% for standard goods, and 40% for luxury or sin items, replacing the previous complex categories.

One of the biggest beneficiaries of this change is the electronics sector. Appliances such as air conditioners, refrigerators, washing machines, dishwashers, and large-screen TVs, previously taxed at 28%, will now attract 18% GST, making them significantly more affordable for the middle class.

Not all electronics saw relief. Mobile phones and laptops remain in the 18% standard slab, leaving their prices largely unchanged. Buyers looking for a cut in GST on these devices will need to rely on seasonal offers rather than tax reductions.

New GST Slab Structure

The revised GST slabs aim to simplify compliance and make pricing clearer for consumers:

• 5%: Essentials
• 18%: Standard goods, including many household appliances and electronics
• 40%: Luxury and sin items, including high-end motorcycles, aerated beverages, and certain discretionary imports

This new structure ensures that essential goods are more affordable, standard items are rationalized, and luxury goods remain heavily taxed.

Impact On Electronics And Household Items

Consumer electronics will see notable price drops under the new GST regime:

• Air Conditioners And Dishwashers: Expected to fall by Rs 3,500-Rs4,500 per unit
• Refrigerators And Washing Machines: Prices could drop by 8-9%, making mid-range models more accessible
• Large-screen TVs (above 32 inches): Significant reductions expected, just in time for the festive season

For households planning upgrades during festivals, these cuts are particularly timely and impactful.

Mobile Phones And Laptops

Despite widespread relief in appliances, GST on mobile phones and laptops remains at 18%. The reasons include their already standard tax classification, significant market size, and government revenue considerations. The industry also benefits more from Production Linked Incentive (PLI) schemes and import duty adjustments than from GST reductions.

Consumer Takeaway

The new GST 2.0 structure provides clear benefits: big-ticket appliances are cheaper, festive purchases are more attractive, and households have greater flexibility to upgrade their homes. Retailers and manufacturers can expect a boost in demand, while the government maintains fiscal stability.