As the festive season approaches and e-commerce giants gear up for sales like Flipkart's Big Billion Days and Amazon's Great Indian Festival, Indian consumers just received another reason to celebrate: the GST Council's major tax rejig. Announced late last evening, the move simplifies the tax structure and brings much-needed relief to appliance buyers, though not everyone benefits equally.
The biggest winners? Air conditioners, large-screen TVs, dishwashers, refrigerators, and even small kitchen appliances like mixers and toasters, all of which now attract a lower 5% or 18% GST, down from the previous 12–28% range. This could translate to real savings of ₹100 to ₹8,000, depending on the product.
But surprisingly, washing machines—long expected to be included—are missing from the list. And despite earlier discussions, there's no separate tax slab for energy-efficient (5-star) appliances either, which many manufacturers were lobbying for.
What's Getting Cheaper (and What's Not)
| Category | Old GST Rate | New GST Rate | Price Impact |
|---|---|---|---|
| Air Conditioners | 28% | 18% | Lower by ~₹3,000–₹5,500 |
| Large TVs (>32″) | 28% | 18% | Lower by ~₹2,000–₹6,000 |
| Dishwashers | 28% | 18% | Lower by ~₹3,000–₹5,000 |
| Refrigerators | 28% | 18% | Lower by ~₹2,500–₹8,000 |
| Mixers / Grinders / Blenders | 12% or 18% | 5% | Lower by ~₹100–₹800 reduction |
| Toasters | 18% | 5% | Lower by ~₹200–₹800 |
| Electric Kettles, Irons, Hair Dryers | 12% | 5% | Lower by ~₹100–₹500 |
| Mobile Phones | 18% | 18% (unchanged) | No impact |
| Audio & Wearables | 18% | 18% (unchanged) | No impact |
| Washing Machines | 28% | 28% (unchanged) | No relief |
| Monitors / Projectors | 28% | 18% | Lower by ~₹2,000–₹5,000 |
| Surveillance Equipment | 18% (no change) | Indirect benefits via reduced hardware component taxes | |
| Non-Lithium-ion Batteries | 28% | 18% |
What About Washing Machines?
The omission of washing machines from this rate cut has surprised both consumers and industry insiders—especially given the segment's rapid growth. With fully automatic washers gaining ground in both urban homes and Tier-2 cities, and a booming washer-dryer subcategory, many were expecting at least a partial GST relief. But that hasn't happened—yet.
"It's odd that dishwashers made the cut but not washing machines, especially when washer-dryers are solving real pain points during monsoons and in compact urban homes," said a Delhi-based user we spoke to.
No Special Treatment for Energy Efficiency
Another missed opportunity is the lack of a differential slab for 5-star rated energy-efficient appliances. This was part of an earlier proposal aimed at encouraging greener choices, particularly in high-consumption products such as air conditioners and refrigerators. The current reform, while simplifying, doesn't incentivize efficiency through tax relief, at least not yet.
Subtle Boost for Clean Energy and EVs
GST 2.0 also delivers a meaningful push toward green energy and sustainable transport. To begin with, GST on renewable energy devices and components has been cut from 12% to 5%. This includes everything from biogas plants and wind-operated generators to solar cookers, water heaters, and photovoltaic cells. The move makes clean energy products more affordable for both households and businesses looking to go green.
GST on non-lithium batteries, such as lead acid, sodium, and flow batteries, has been reduced from 28 per cent to 18 per cent. However, Lithium-ion batteries will continue to attract 18 percent GST. This change is expected to help scale grid-level energy solutions that can store solar and wind power more efficiently.
In the EV space, the 5 percent GST on electric vehicles remains unchanged. However, there is a major policy signal in the decision to reduce GST on hydrogen-powered vehicles, including fuel cell-based cars, buses, and trucks, from 12% to 5%.
These changes may not directly impact consumer electronics pricing today, but are expected to accelerate the ecosystem for clean mobility and renewable power in the long run.
A Festive Season Full of Deals
For consumers, the timing is perfect. Between GST cuts and blockbuster festive deals, this is likely to be the best time in years to upgrade appliances. Whether you're replacing an ageing 1.5-ton AC, buying a bigger TV for the family, or finally getting that dishwasher, the combined price drop plus cashback/EMI offers could make high-ticket items more accessible than ever. “Consumers can save around ₹3,000 to ₹5,000 on major appliances—this bold step will boost demand in Tier 2 and Tier 3 cities," said Anurag Sharma, MD & CEO, AKAI India.
What the Industry Is Saying
Rajeev Singh, MD, BenQ India: "This reform reduces compliance complexities and fosters a more transparent business environment… it will lower costs across the supply chain and stimulate demand."
Pankaj Rana, CEO, Hisense India: "By reducing price barriers, these reforms enable a larger and more diverse consumer base, especially in Tier-2 and Tier-3 cities, to access high-quality, energy-efficient products."
Ravi Agarwal, MD, Cellecor: "Aligning GST on lithium-ion batteries to 18% will help wireless and portable smart devices by lowering input costs across the value chain."
Aditya Khemka, MD, CP PLUS: "The revisions will help reduce the cost of hardware for modern surveillance, aiding faster deployment and safer communities."
Ravi Kunwar, CEO, HMD India: "By simplifying the structure into 5% and 18%, these reforms promote consumer savings and create more disposable income."
The next step?
The two-rate GST structure (5% and 18%) marks a cleaner, more predictable future. It's easier for MSMEs, reduces confusion at the checkout, and encourages broader compliance. But clarity on how these cuts are implemented by retailers and passed on to consumers will be crucial in the weeks ahead. While the government is hoping that they will be passed in an efficient and transparent manner, we will be able to see the real impact only in the coming months.
