Under the new GST rates applicable from September 22, 2025, the tax on TVs, refrigerators, ACs, and other home electronics has been reduced from 28% to 18%. This will result in savings of Rs 500 to Rs 2,000 for consumers. Additionally, GST on 99% of daily essential items will be reduced from 12% to 5%.
GST on Electronics: The central government has announced significant changes in GST, effective from September 22, 2025. Now, GST on TVs, ACs, refrigerators, washing machines, microwaves, and other home electronics will be reduced from 28% to 18%, offering consumers savings ranging from Rs 500 to Rs 2,000. Furthermore, the tax on 99% of everyday items will be decreased from 12% to 5%. The aim of this move is to provide financial relief to households before the festive season and make shopping more affordable.
Direct 10 Percent Savings on Electronics
The government has reduced the GST rate on TVs, ACs, refrigerators, and other home electronics from 28 percent to 18 percent. This change will lead to savings of approximately 10 percent for consumers. Experts estimate that this saving could range from Rs 500 to Rs 2,000, depending on the product's price and model.
This change will be particularly beneficial for families planning to purchase electronics during the festive season. Additionally, it is expected to boost sales in both the retail and e-commerce markets.
Benefit on All Home Electronics
Following the implementation of the new GST rates, benefits will be seen on almost all home electronics. Products that previously attracted 28 percent GST will now be taxed at only 18 percent. These products include TVs, ACs, coolers, fans, dishwashers, refrigerators, washing machines, sewing machines, vacuum cleaners, microwave ovens, induction cookers, heaters, grinders, mixers, juicers, hair dryers, electric shavers, trimmers, and electric irons.
Experts believe that this change will increase demand in the electronics sector. Both retailers and online platforms are preparing to leverage this opportunity by offering special schemes and discounts.
Relief on Everyday Items Too
Additionally, the new GST rate will apply to 99 percent of items used in daily life. Items like soap, detergent, toothpaste, and hair oil, which previously had a 12 percent GST, will now have it reduced to 5 percent.
This change will directly benefit families in the lower and middle-income groups. The reduction in tax on daily necessities will have a positive impact on household budgets.
Major Change in GST Slabs
Previously, there were four slabs in the GST system: 5 percent, 12 percent, 18 percent, and 28 percent. From September 22, only two slabs will remain: 5 percent and 18 percent. In addition, a new slab of 40 percent will be introduced for luxury and sin products.
The government believes that this reform will simplify the GST system and reduce administrative complexities by decreasing the number of tax slabs.
