GST Rate Cut on AC, TV, Fridge, Laptops & Other Electronics

The new GST reforms introduced in September 2025 are set to reshape electronics pricing in India. Many home appliances and electronic products, previously taxed at higher rates, have become significantly more affordable. This benefits both consumers, who can now buy essential items at lower costs, and companies, which can expect improved sales

New GST Structure of Electronics

GST: Complexity to Simplicity

Until recently, electronic appliances were taxed at varying GST rates of 5%, 12%, 18%, and 28%. Goods like air conditioners, large televisions, and refrigerators fell into the higher brackets, making them unaffordable for many families.

On 3rd September 2025, the GST Council revised this system, reducing it to just three slabs:

Standardizing electronics under the 18% rate means simpler billing and clearer pricing for consumers.

GST Cut Makes Popular Electronics More Affordable

New GST on ACs, TVs, Fridges, Washing Machines

Air conditioners, refrigerators, large TVs, and washing machines have all moved from the 28% slab down to 18%. For instance, a medium-range AC that previously cost ₹30,000 would now be closer to ₹27,500.

Even the kitchen appliances, such as mixers, grinders, blenders, and dishwashers, have shifted to the 18% slab. This makes households comfortably update their kitchen equipment without the burden of high taxes.

Buy Used Computers & Laptops in India

GST on Laptops and Cell Phones

Laptops and mobile phones are to remain unchanged, i.e., 18%. So there is no price change in these items. This category of products was already considered as standard goods and, unlike appliances, could not receive any further tax cuts during the recent reform.

The Effect of the GST Rate Cut on the Prices and Savings

Shopper Direct Price Drops

A decline in the GST from 28 to 18% will result in a price reduction of about 8 to 9% of major household appliances. Indian households planning festive upgrades (particularly on Diwali) have an added reason to purchase new electronics.

Reason Behind the GST Cut

The GST reduction was initiated to make the basic home appliances affordable to more citizens. This action increases consumer confidence, assists the manufacturing firms in competing, and stimulates the retailers to share the gains with the consumers.

Influence on the Electronic Market

Boost to Consumer Sentiment

Reduced GSTs will imply that electronics will sell faster, especially during the festivals. Retailers can expect more footfall, and the manufacturers will also enjoy a higher demand for their products produced within the country.

Home Production and Employment

As electronics are getting competitive through cut-down taxation, increasing numbers of companies are moving towards local production. This takes care of the Made in India vision and is able to enhance employment opportunities throughout the supply chain.

Check Out: Used Electronics & Appliances Items on OLX

What Consumers Should Know Before Buying

Timing and Price Transition

The new GST rates become effective September 22, 2025. The consumer must compare after this date and check the prices in the stores and online. Old stock might have been priced with a legacy pricing, and the new stock may have the advantage of the new GST.

Watch Out for Festive Deals

Following the GST rate reduction, retailers are expected to roll out special sales, exchange offers, and cashback deals in the coming weeks. Buyers should compare offers carefully and verify the final price after tax before making a purchase.

Market Trends and Industry Views

This change is welcome in retailers and manufacturers throughout India. Analysts anticipate an increase in the sales of electronic products especially those whose rates have been increased to 18 due to GST. Feelings of more buyers will be experienced in small local stores as well as large online markets, as the price decreases.

GST Rates on Other Electronics and Appliances

Overview of Updated GST Rates

Here is an easy-to-read table showing revised GST rates for popular items:

Price changes will be more noticeable for products dropping from 28% to 18%, while items already in the 18% slab, like laptops and mobile phones, will see no change. It is best to compare prices after this date, both in stores and online. Older stock may still reflect legacy pricing, while new inventory will likely reflect the reduced GST benefits.

Top Trends After the GST Rate Cut

• Greater E-commerce: With new electronics now 8-10% cheaper, there will be an increase in online shopping of used electronics. As sellers adjust their prices, you’ll find even better deals on second-hand electronics—meaning more savings for your budget.
• Upgrades: A lot of households that had delayed the purchase of costly appliances will plan to upgrade now. On OLX, that means a fresh wave of lightly used, almost-new products hitting the market as people switch to upgraded models. It’s a win for buyers, who get access to quality appliances at significantly lower prices. For instance, if a brand-new refrigerator drops from ₹30,000 to ₹27,000, you’re in a stronger position to negotiate for a fairer price on a pre-owned one. Every rupee saved is extra value in your pocket.

Check-out: Used AC in India

Conclusion

The GST reduction on electronics is good news for Indian consumers, making essential items like ACs, fridges, TVs, and washing machines cheaper with a lower tax rate of 18% instead of 28%. Laptops and mobiles are also taxed at 18%, and the simplified slabs help boost demand while making purchase decisions easier.

With GST 2.0 rolling in, it’s a great time to upgrade and save. Platforms like OLX benefit as well, with increased activity in buying and selling second-hand electronics, giving consumers affordable options and sellers wider reach. In a nutshell, it’s a great time to upgrade and save. With more people upgrading to new appliances, there will be more affordable used options on OLX to purchase. Browse now!

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