If you’ve been planning to buy a new TV or upgrade your AC, there’s good news, under GST 2.0, the new GST rates on electronics 2025 have been simplified and, in many cases, reduced.
Earlier, electronics like refrigerators, washing machines, air-conditioners, and TVs were taxed at a steep 28%, putting them in the same bracket as luxury cars and tobacco. Understandably, that didn’t make sense, a washing machine isn’t a luxury anymore, it’s a household essential.
Recognising this, the government introduced a new GST structure in September 2025, where such mid-range electronics have moved to the 18% slab, instead of the old 28%.
This change makes home appliances more affordable and reflects a realistic understanding of today’s Indian lifestyle, where gadgets and appliances are necessities, not indulgences.
In this blog, we’ll break down the new GST rates on electronics 2025, which items are cheaper, and how these changes will impact both your wallet and India’s growing consumer economy.
What are the New GST Rates on Electronics?
Under GST 2.0, electronic items have been reclassified into three simple categories:
| Category | Old GST Rate | New GST Rate (2025) | Type of Goods |
| Essential Electronics | 18% | 5% | Mobile phones under ₹20,000, power banks, chargers, LED bulbs |
| Standard Home Appliances | 28% | 18% | TVs (up to 55”), washing machines, refrigerators, air-conditioners |
| Premium / Luxury Electronics | 28% + cess | 40% | High-end TVs, imported sound systems, home theatres, smart projectors |
Here’s a closer look 👇
📺 Televisions (TVs)
- Old rate: 28%
- New rate: 18% for TVs up to 55 inches, 40% for premium models above 55” or imported brands.
- Impact: Mid-range smart TVs are now 10% cheaper, while luxury models may cost slightly more.
❄️ Air Conditioners (ACs)
- Old rate: 28%
- New rate: 18%
- Impact: This is a major relief for households and small businesses. A ₹40,000 AC now costs ₹7,200 less due to the rate cut (28% → 18%).
🧺 Washing Machines & Refrigerators
- Old rate: 28%
- New rate: 18%
- Impact: Everyday home appliances are now more affordable, encouraging families to upgrade or replace older units.
🔋 Mobile Phones, Accessories & Small Electronics
- Old rate: 12% or 18% (depending on category)
- New rate: 5% for basic items like power banks, chargers, earphones; 18% for smartphones above ₹20,000.
- Impact: Budget phones and accessories are cheaper, supporting India’s digital inclusion drive.
🔈 Luxury Electronics (High-End Imports)
- Old rate: 28% + cess (varied by item)
- New rate: 40% flat
- Impact: Imported gadgets, high-end speakers, OLED TVs, and home theatres will cost more, aligning luxury tech with the new top GST slab.
👉 In short:
Under GST 2.0, the government has clearly drawn a line between necessities and indulgences. Essential and standard electronics are now cheaper, while luxury imports bear a higher tax, making the system both practical and fair.
How the New GST Rates Impact Consumers and Businesses
The GST rate changes for electronics under GST 2.0 have created a ripple effect across Indian households, retailers, and the wider economy. Let’s look at how this shift is playing out 👇
👨👩👧👦 1. Big Relief for Middle-Class Consumers
For most Indian families, electronics are no longer luxuries, they’re household essentials. By cutting GST from 28% to 18% on appliances like TVs, fridges, and washing machines, the government has effectively put money back into people’s pockets.
Example:
A washing machine priced at ₹30,000 earlier cost ₹38,400 after 28% GST.
Now, under 18%, the final price is ₹35,400, a straight saving of ₹3,000.
That’s enough to cover a month’s electricity bill or a few grocery runs, a genuine financial difference for middle-class households.
🏠 2. Encourages Upgrades and New Purchases
Cheaper GST means more people will upgrade to energy-efficient appliances or replace outdated gadgets.
- Families may opt for inverter ACs, smart TVs, or frost-free fridges.
- Retailers expect a rise in festive-season sales as prices align with consumer expectations.
This fuels both consumer satisfaction and economic activity.
🧾 3. Simplified Pricing = Transparent Bills
Earlier, electronics were split across multiple GST slabs (12%, 18%, 28%), leading to confusion.
Under GST 2.0:
- The majority of electronics fall under 18%.
- Luxury imports fall under 40%.
This makes pricing and billing simpler for customers and retailers alike.
When you walk into a store now, you know exactly what rate applies, no hidden surprises.
🏪 4. Boost for Retailers and MSMEs
Small electronics dealers and MSME manufacturers are among the biggest winners of this reform.
- Fewer slab classifications = less paperwork and fewer compliance headaches.
- Easier pricing = faster billing and better customer trust.
- Mid-range product affordability = higher sales volumes.
A simpler structure also means better working capital management, as retailers no longer face confusion over Input Tax Credit (ITC) claims from multiple GST brackets.
📈 5. Stronger Growth for “Make in India” Electronics
The revised GST rates are designed to support domestic manufacturing.
By lowering taxes on standard electronics while keeping luxury imports expensive (40%), the government encourages buyers to choose Indian-made brands.
Result:
- Boost in local manufacturing output.
- More jobs in assembly and after-sales service.
- Less import dependency on high-cost luxury gadgets.
💰 6. Balanced Revenue Collection for the Government
While lower GST rates on essentials reduce immediate tax collection, higher 40% rates on luxury goods ensure the revenue gap is balanced.
This new model helps the government maintain fiscal stability while still giving relief to the average consumer.
👉 In short:
Consumers save, businesses grow, and India manufactures more.
The new GST rates on electronics make home technology more affordable and accessible, all while ensuring that luxury remains a choice, not a burden on the economy.
Conclusion: A Smarter, Fairer Tax for a Tech-Savvy India
The new GST rates on electronics under GST 2.0 mark a thoughtful shift in India’s tax policy, one that recognises how integral gadgets and home appliances have become to modern life.
By lowering the GST on standard electronics from 28% to 18%, the government has made it easier for families to afford everyday essentials like TVs, ACs, washing machines, and fridges. This isn’t just a financial change, it’s a quality-of-life upgrade for millions of middle-class households.
At the same time, the 40% slab on luxury imports ensures that high-end consumption continues to contribute fairly to national revenue. The new structure balances affordability with accountability, supporting both the consumer and the economy.
From a larger perspective, these changes will likely boost domestic manufacturing, retail demand, and digital adoption, taking India one step closer to its Make in India and Digital Bharat goals.
👉 The bottom line: With smarter GST rates, India’s electronic dreams just got more affordable, and the economy got a little stronger too.
FAQs on New GST Rates on Electronics (2025)
Q1. What are the new GST rates on electronics in 2025?
Under GST 2.0, electronics are taxed as follows:
- 5% for essential electronics (mobile phones under ₹20,000, chargers, LED bulbs)
- 18% for standard appliances (TVs, ACs, washing machines, refrigerators)
- 40% for luxury or imported electronics (high-end TVs, sound systems, projectors)
Q2. What was the GST on electronics before 2025?
Earlier, most electronics like TVs, ACs, and fridges were taxed at 28%, which made them expensive. GST 2.0 has simplified this to 18% for standard items.
Q3. Has GST on TVs and ACs been reduced?
Yes ✅. The GST on TVs up to 55 inches and all air-conditioners has been reduced from 28% to 18%, making them around 10–12% cheaper.
Q4. What is the GST rate on mobile phones and accessories now?
- Mobile phones under ₹20,000: 5%
- Phones above ₹20,000: 18%
- Accessories (chargers, earphones, power banks): 5%
Q5. Why did the government change GST rates on electronics?
The goal is to make electronics more affordable, support domestic manufacturing, and simplify the tax structure. Essentials got cheaper, while luxury imports moved to the 40% slab.
Q6. How does GST 2.0 impact electronic retailers and manufacturers?
Retailers benefit from simpler billing and higher sales, while manufacturers enjoy more consistent demand and reduced classification confusion under the three-slab system (5%, 18%, 40%).
