What’s New:
- The GST Council has simplified the tax structure into a two-tier system: 5% and 18%, replacing the earlier 12% and 28% slabs. A 40% slab now applies only to luxury and sin goods. The Times of IndiaReutersPress Information Bureau
- Items previously taxed at 28%—including TVs, ACs, refrigerators, washing machines, and dishwashers—will now fall under the more affordable 18% slab. The Times of IndiaReutersThe Economic TimesHindustan TimesDigitMoneycontrol
Electronics & Household Appliances – What Gets Cheaper:
- Televisions (especially large screens above 32 inches): GST reduced from 28% to 18%, potentially saving several thousand rupees per unit on models priced around ₹22,000. The Times of India+1Digit
- Air Conditioners & Dishwashers: Now taxed at 18%, offering a reduction of ₹1,500–₹2,500 on average. Hindustan TimesThe Economic TimesReuters
- Refrigerators & Washing Machines: Also shifted to 18%, easing affordability for household essentials. Hindustan TimesThe Economic TimesDigit
- Monitors & Projectors: Now under the 18% slab, moved from the higher bracket. The Times of IndiaDigit
What Doesn’t Change:
- Mobile phones & Laptops: GST remains unchanged at 18%—no relief announced for these categories, despite industry appeals to treat them as essentials. Hindustan TimesThe Economic Times+1SAG Infotech Official BlogThe Times of India
Impact & Industry Response
- Consumers: Expect meaningful savings and greater affordability, especially on premium TVs, air conditioners, and major appliances—just in time for the festive shopping surge. The Economic TimesNavbharat TimesThe Economic TimesDigit
- Manufacturers & Retailers: Brands like Dixon and Amber Enterprises foresee improved demand and manufacturing momentum, especially in Tier-2 and Tier-3 cities. Moneycontrol
- Government & Industry Sentiment: Finance Minister Nirmala Sitharaman hailed the move as a simplification that supports households and boosts consumption. Bhopal’s CM described it as “revolutionary,” likely benefiting nearly 90% of the population. The Times of India
- Economy at Large: Analysts expect increased production, strong festive sales, and a possible GDP improvement of 100–120 basis points over the next few quarters. Reuters
- Policy Goals: The rate rationalization aligns with ‘Next-Gen GST’ objectives—simpler slabs, faster compliance, enhanced growth, and fair taxation. Press Information BureauIndiatimesReuters
Summary Table: What Gets Cheaper – And What Doesn’t
| Category | Old GST Rate | New GST Rate | Savings? |
|---|---|---|---|
| Mobile Phones & Laptops | 18% | 18% | No change |
| Televisions (up to large-sized) | 28% | 18% | Yes – significant, especially for >32″ |
| Air Conditioners | 28% | 18% | Yes – ₹1,500–2,500 per unit |
| Refrigerators / Washing Machines / Dishwashers | 28% | 18% | Yes – enhanced affordability |
| Monitors & Projectors | 28% | 18% | Yes – tax benefit applies |
Looking Ahead
With the rate cuts becoming effective from September 22, consumers can expect revised, more attractive pricing both in electronics stores and online platforms—especially during the upcoming festive season. While major appliances and TVs become noticeably cheaper, gadgets like mobile phones and laptops remain at the status quo.
Let me know if you’d like a breakdown by product model, retailer offers, or how these changes stack up against past GST revisions!
Further reading on GST reform and its impacts
What is the new GST rate cut on mobile phones, TVs, ACs, laptops and other electronic items
How GST cuts will change what you pay from Sept 22
Indian shares set for strong start on government’s tax bonanza ahead of festivals