Goods and Services Tax (GST) Council announced major reductions in tax rates on several electronic items on Wednesday, 3rd September. Indian consumers received a festive season gift after this announcement. The govt has removed the GST slabs 12% and 28%, while retaining only 5% and 28% slabs. The move, expected to bring down retail prices and boost demand, is part of the government’s broader revised GST reforms aimed at simplifying the tax system.
Customers of electronics items will be benefited because of the GST reform. Earlier, most electronic goods were taxed at a flat 28 per cent. With the new reforms, the government has streamlined the system into a simpler two-tier structure of 5 per cent and 18 per cent. Under this, several household electronic appliances will now be taxed at the lower 18 per cent slab instead of 28 per cent.
Union Finance Minister Nirmala Sitharaman, who chaired the 56th GST Council meeting, said the new tax rates will take effect from 22nd September, first day of Navratri. She added that the move is designed to rationalise the tax system while also making everyday goods more affordable for families.
Key appliances get cheaper
The reduced GST rates apply to four major categories of electronics, air conditioners, televisions above 32 inches (including LED and LCD models), monitors and projectors, and dishwashing machines. These items, which earlier attracted 28 per cent GST, will now fall under the 18 per cent slab.
Beat the Heat for Less now with #NextGenGST pic.twitter.com/oxuH4GSdxo
— Nirmala Sitharaman Office (@nsitharamanoffc) September 3, 2025
Small-screen TVs below 32 inches were already taxed at 18 per cent, so their prices will remain unchanged. But for large TVs and other large appliances, prices will fall.
Entertainment at home becomes cheaper with #NextGenGST pic.twitter.com/GCxdKtCiQ6
— Nirmala Sitharaman Office (@nsitharamanoffc) September 3, 2025
Industry experts welcomed the decision, citing that it would not only increase demand but also spur support for the electronics environment. Ravi Agarwal, Co-Founder and Managing Director of Cellecor India, said that the new tariff levels will not only make the products more affordable for consumers but also simplify compliance for firms.
No change for mobiles and laptops
While the tax cuts will benefit larger appliances, there is no change in GST rates for mobile phones and laptops. Both categories will continue to be taxed at 18 per cent. This means there will be no immediate drop in the prices of smartphones and laptops, though experts note that cheaper televisions, ACs, and dishwashers will give consumers relief in festive spending.
Impact on prices
The 10 per cent cut in GST is likely to significantly reduce the prices of big TVs, monitors, projectors, dish washing machines, and air conditioners at the retail level. For example, big LED and LCD TVs larger than 32 inches will be charged only 18 per cent GST whereas earlier they were charged 28 per cent, and similarly ACs and dish washers will also get the same discount.
According to a PTI report, an air-conditioner could now cost Rs 1,500 to Rs 2,500 less, depending on the model. Industry executives believe the cut will not just drive volumes but also push buyers toward premium, energy-efficient models.
Avneet Singh Marwah, CEO of SPPL and Exclusive Brand Licensee of Thomson in India, said the cut on smart TVs will not only make technology more affordable but also drive digital inclusion across households.
Similarly, Aditya Khemka, Managing Director of CP PLUS, noted that the rationalisation of GST on electronics and components would reduce the cost of hardware for modern surveillance systems, making them more accessible for businesses and residential complexes.
Government’s vision
The GST Council described the reforms as part of its ongoing effort to simplify the indirect tax structure. Finance Minister Nirmala Sitharaman stressed that the aim was to make the system easier for industries while easing the burden on ordinary consumers. “These reforms have been introduced to make the structure simpler and boost demand,” she said during the press briefing.
By lowering GST on household electronics ahead of the festive season, the government hopes to give a push to consumer spending while also strengthening India’s electronics industry. For families, it means big-ticket appliances may finally become a little lighter on the pocket.