GST Reform 2025: From ACs to TVs, What’s Cheaper and What’s Not

Ahead of the holiday season, the Indian government has implemented GST 2.0, which will benefit manufacturers and consumers alike. Smartphones continue to be subject to the 18% GST slab, despite the new tax structure, which was implemented on September 3, 2025, lowering the GST rates on a number of consumer electronics.

Things That Were Reduced in Price Under GST 2.0

The goal of GST 2.0 is to lessen the burden on consumer electronics and household goods. Important modifications consist of:

• Air conditioners are now subject to 18% tax rather than 28%, which, depending on the model, could result in savings of ₹1,500 to ₹2,500.
• Large-screen TVs: GST on models larger than 32 inches is reduced from 28% to 18%.
• 32-inch TVs: Entry-level TVs are much more affordable now that the GST is down to 5%.
• Refrigerators and washing machines: decreased from 28% to 18%.
• Depending on the category, products under the 12% slab were moved to either 5% or 18%.

According to industry experts, these reductions will boost demand across all categories by encouraging more customers to purchase during the impending festive sales.

What About Cell Phones?

Smartphones are still subject to 18% GST, despite rumors. The government is unlikely to lower them further, according to industry insiders, since the next slab down is only 5%. Manufacturers were hoping for a cut.

Manufacturers are still requesting a reconsideration in later GST Council meetings, though.

The Significance of GST 2.0

Customers can save a lot of money on expensive appliances like TVs and air conditioners.

• Manufacturers: Due to more affordable prices, anticipate increased sales volumes during festivals.
• Economy: Lower tax rates on goods used for mass consumption may encourage investment and increase output.