GST Cuts on ACs, TVs, Fridges & Washing Machines – Big Savings for Buyers

Sep 4, 2025

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The Indian government has recently revamped the Goods and Services Tax (GST) structure, bringing major relief for households and middle-class consumers. With the revised GST rates, air conditioners, refrigerators, washing machines, and televisions have become more affordable, giving a big push to consumer spending just ahead of the festive season.

This move is expected to boost demand, support the consumer durables industry, and encourage more people to upgrade to energy-efficient models.

📉 New GST Rates on Home Appliances

The GST Council has slashed rates for popular consumer electronics, bringing them under a lower slab. Here’s how the changes look:

Product Category	Old GST Rate	New GST Rate	Impact on Prices
Small TVs (<32 inches)	18% – 28%	5%	Drastic price cut, especially for budget TVs
Large TVs (>32 inches)	28%	18%	Savings of ₹2,000–₹5,000
Air Conditioners	28%	18%	Reduction of ₹1,500–₹3,000 per unit
Refrigerators	28%	18%	Mid-range models now more affordable
Washing Machines	28%	18%	Average household savings of 8–10%
Dishwashers & Other Appliances	28%	18%	Prices lowered across premium appliances

🎯 What This Means for Consumers

Big Savings for Middle-Class Families
Households looking to buy essential appliances like fridges, washing machines, or ACs will now spend less, making these products more accessible.
Encouragement to Upgrade
With lower prices, consumers may switch to newer, energy-efficient models—helping reduce electricity bills in the long run.
Festive Season Boost
The timing of the GST cuts is ideal. With Diwali, Dussehra, and other festivals approaching, retailers expect a surge in sales.
Wider Reach to Tier-2 & Tier-3 Cities
Affordable pricing could also drive demand in semi-urban and rural areas where penetration of appliances like dishwashers and large TVs is still low.

🏭 Industry Impact

Consumer Durable Companies such as LG, Samsung, Whirlpool, and Godrej are expected to benefit from higher sales volumes.
Retailers & E-commerce Platforms will see strong demand, especially during festive discounts and EMI offers.
Manufacturers may increase production, creating more jobs and boosting the supply chain.

📊 Why This GST Cut Matters

Factor	Before GST Cut	After GST Cut
Affordability	Higher costs due to 28% GST	Reduced prices with 18% GST slab
Consumer Sentiment	Buyers delaying purchases	Renewed confidence & festive buying spree
Industry Growth	Stagnant demand in entry/mid-range	Expected growth of 10–15% in next quarter
Market Penetration	Limited in Tier-2 & Tier-3 markets	Wider adoption due to lower prices

✅ Final Thoughts

The latest GST reforms mark a turning point for India’s consumer electronics sector. By lowering GST on essential appliances, the government has given the middle class more spending power and revived demand in a sector that has been sluggish in recent years.

For consumers, this is the perfect time to upgrade or invest in home appliances. For the industry, it signals a strong growth trajectory driven by affordability, accessibility, and festive cheer.