Voltas, Blue Star, Havells (Lloyd) and more: AC stocks rise as GST cut from 28% to 18%

Shares of air conditioner manufacturers rose on Thursday, September 4, after Union Finance Minister Nirmala Sitharaman announced that ACs will draw 18% goods and services tax (GST) as compared to 28% earlier.

Voltas shares were up 0.18% to ₹1,432.90 apiece on the National Stock Exchange (NSE) at 9:47 am.

Stocks of Blue Star, Havells India (Lloyd), Amber Enterprises, PG Electroplast and Symphony also advanced 0.9%, 1%, 1.3%, 4.4% and 0.5%, respectively.

The GST rate cut comes as a great relief for AC companies, which saw their businesses impacted due to unseasonal rains and early monsoon.

Besides rain, the impact was furthermorenoticeable due to an exceptionally high base in the first quarter of the financial year 2024-25, when a harsh and prolonged summer benefited makers due to record sales.

The decision was taken during the 56th GST Council meeting, which limited the slabs to 5% and 18%, effective from September 22, 2025, the first day of Navaratri.

"Reduction of GST from 28% to 18% includes several items which meet the aspirations of the middle class. Air conditioners and TVs above 32 inches are now in the 18% GST slab. All televisions are now taxed at the 18% GST slab," Sitharaman said.

She said that Prime Minister Narendra Modi set the tone for the next generation of GST reforms on August 15 during his address from the ramparts of Red Fort.

She said that this reform is not just on rationalising rates, but it is also on structural reforms and ease of living so that businesses can work together with great ease.

"We have corrected inverted duty structure problems, we have resolved classification-related issues, and we have ensured there will be stability and predictability about the GST reforms," Sitharaman said.