Consumer appliances industry upbeat about GST reduction on air conditioners, TVs, dishwashers

The reduction of GST rates on air-conditioners and dishwashers and the standardisation of rates for all television variants at the 56^th GST Council meeting on Wednesday (September 4, 2025) emerged as the subject of much enthusiasm for the consumer appliances industry, especially ahead of the upcoming festive season.

Also read: GST Council meeting highlights

The council slashed GST rates on air-conditioners and dishwashers from 28% to 18%, whilst it standardised the rate on all types of televisions to a lower 18%. Previously, the purchase of televisions housed two tax rates, that is, 18% and 28%, depending on the screen size being within or more than 32 inches. However, the council did not alter the effective rates on laptops and mobile phones, presently being taxed at 18%.

‘Rationalisation would help spur demand’

Manish Sharma, Chairman of appliance manufacturer Panasonic Life Solution India, welcoming the rationalisation on air conditioners and televisions, affirmed that it would “directly benefit consumers, especially as we step into the festive season”.

He added the rationalisation, coupled with the upward revision in income tax slabs for exemption during the Budget would “create a strong momentum for the consumer durables sector, driving high demand across urban and emerging markets”.

Furthermore, Ravi Agarwal, Co-Founder and Managing Director at the India-based manufacturer of appliances and gadgets Cellecor, added the rationalisation would not only enhance affordability for Indian households but also simplify compliance and operational efficiency for manufacturers and brands like theirs.

No rationalisation for mobile phones, laptops 

The council, however, did not alter the GST on smartphones, tablets and laptops. The three continue to draw a GST liability of 18%. Whilst welcoming the revision in consumer appliances, Pankaj Mohindroo, Chairman at the India Cellular & Electronics Association (ICEA), said, “We also remain hopeful that the realisation of GST on smartphones and laptops will be considered in the future, given its potential to improve affordability and strengthen digital inclusion.

The only development in the realm of consumer tech related to the standardisation of the rate on lithium-ion batteries, widely used in gadgets, at 18%. Mr. Agarwal articulating it as “equally significant”, said, “This will have a direct impact on the ecosystem of wireless, portable and smart devices by reducing input costs across the value chain.”