The Indian consumer electronics market is set to witness a price reshuffle, thanks to the recent Goods and Services Tax (GST) reforms. In a move that aims to simplify taxation and boost affordability, the GST Council has approved a two-tier rate structure of 5% and 18%, trimming down the previously complicated slab system. Union Finance Minister Nirmala Sitharaman announced that the revised rules will take effect from September 22, making this festive season more pocket-friendly for households and gadget lovers.
With the new changes, several big-ticket electronic appliances like air conditioners, televisions, refrigerators, dishwashers, and washing machines will now attract an 18% GST rate instead of the earlier 28%. This means that consumers could soon see a dip in prices, ranging from a few hundred to a few thousand rupees, depending on the product. Let’s break down how these GST rate cuts will impact different categories of electronics and what it means for you as a buyer.
Why the GST Rate Cut Matters for Consumers?
Electronics and home appliances are no longer seen as luxury goods but rather as essential household items. For years, the steep 28% GST slab kept many products, especially premium appliances, out of reach for middle-class buyers. With this revision, the government is signalling affordability and encouraging demand in the consumer electronics sector.
Moreover, with upcoming festivals like Navratri, Diwali, and Dussehra, this reform could act as a booster for retail sales. Industry insiders believe this will not only help brands clear existing inventory but also make room for new launches at competitive prices.
Mobile Phones and Laptops
Let’s start with the two most searched-for categories, mobile phones and laptops. Despite the excitement surrounding the GST overhaul, there is no change in tax rates for smartphones and laptops.
- Mobile Phones: The GST rate remains steady at 18%. This means that popular smartphone brands such as Apple, Samsung, OnePlus, and Xiaomi will continue to retail at existing prices. No festive discounts through tax reduction here.
- Laptops and Tablets: Similarly, laptops and tablets will also continue to attract an 18% GST. So, if you’ve been waiting for a laptop price slash under GST 2.0, you’ll be disappointed.
Bottom Line: While mobiles and laptops won’t see a direct price cut from taxation, e-commerce sales and festive season offers may still give consumers indirect benefits through discounts and exchange programs.
TVs Get Cheaper
One of the biggest winners of this GST reform is the television segment. For years, TVs larger than 32 inches were taxed at a steep 28% GST, making them significantly expensive compared to smaller models.
Now, under the new rules, the GST has been reduced to 18% for all types of TVs. This includes:
- LCD and LED televisions
- Smart TVs and 4K Ultra HD models
- Monitors and projectors (not incorporating television reception apparatus)
- Set-top boxes and reception apparatus
Estimated Savings: Depending on the model and size, consumers can expect savings of Rs 2,000 to Rs 5,000 on mid-range to premium TVs. This is a big win for households planning to upgrade to smart TVs ahead of the festive season or cricket tournaments.
Air Conditioners and Dishwashers
If you’ve been postponing the purchase of an air conditioner or a dishwasher due to high prices, now is the right time to reconsider. Both these categories have been moved from the 28% GST slab to the 18% slab.
- Air Conditioners (Split and Window): Analysts suggest that ACs may become cheaper by Rs 1,500 to Rs 2,500 per unit. High-end inverter models could see even bigger price cuts.
- Dishwashers: A segment that has gained popularity post-pandemic due to rising demand for convenience in urban households will now also become more accessible. Expect a price reduction of around Rs 2,000 to Rs 3,000, depending on the brand.
This change is expected to drive higher adoption in tier-2 and tier-3 cities, where affordability plays a key role in purchase decisions.
Washing Machines and Refrigerators
Another major impact of the GST cut is on washing machines and refrigerators, two staples in Indian households.
- Washing Machines: Prices will now drop as they shift into the 18% tax bracket. Whether you’re looking for a fully automatic, semi-automatic, or top-load machine, there’s good news across the board.
- Refrigerators: From single-door fridges to double-door and side-by-side models, all will now see a notable dip in pricing.
The savings may range from Rs 1,000 to Rs 3,000, which makes a big difference for budget-conscious buyers.
What Stays the Same?
While most large consumer appliances have seen a reduction, certain categories remain untouched:
- Smartphones - 18%
- Laptops and Tablets - 18%
- Wearables (Smartwatches, Fitness Bands, etc.) - 18%
- Gaming Consoles - 18%
So, while household appliances get relief, the latest iPhone, MacBook, or PlayStation 5 will continue to burn a hole in your pocket at the same tax rate.
Industry Reactions
Leading consumer electronics brands and retail associations have welcomed the GST reform. According to industry reports, companies expect:
- Higher sales volumes during the festive quarter.
- Boost to the organised retail sector, as affordability brings more customers into branded showrooms.
- Encouragement for Indian manufacturing, since the tax cut could push domestic demand for locally made appliances.
Experts also believe this will help reduce the grey market sales of electronics, as official retail prices now become more competitive.
What It Means for Shoppers?
For the average Indian household, the new GST structure means:
- Bigger savings on large appliances like ACs, refrigerators, washing machines, and TVs.
- Better shopping opportunities during the upcoming festive sales on e-commerce platforms like Amazon and Flipkart.
- More value for money when upgrading household gadgets.
So, if you were waiting to buy that 55-inch smart TV or an energy-efficient refrigerator, September onwards could be the best time.
The GST reform is more than just a tax update; it’s a direct benefit for millions of Indian households looking to upgrade their lifestyle with modern gadgets. By moving most consumer electronics from the 28% slab to the 18% slab, the government has signalled affordability, accessibility, and growth.
While smartphones and laptops remain unaffected, the relief across home appliances like ACs, dishwashers, TVs, refrigerators, and washing machines is undeniable. This could mark the beginning of a more inclusive consumer electronics era in India, where technology becomes affordable for a larger section of society.
For now, buyers can gear up for a festive season filled with price drops, exclusive offers, and smarter shopping decisions. all thanks to GST 2.0.
Also Read: GST 2.0 New Rates: What Gets Cheaper and What Gets Costlier
About the Author:
Akanksha Sinha
I'm Akanksha Sinha, an expert in writing sports blogs, news, and various articles for entertainment and more. I bring a unique flair to my work, providing insightful perspectives on the world of sports.
My articles aim to inform and entertain, making me a go-to source for sports enthusiasts seeking a blend of information and enjoyment. With a passion for storytelling and a keen eye for detail, I consistently deliver compelling narratives that resonate with a diverse audience.
