New GST rate for air conditioners (AC), TVs and dishwashers: All you need to know

The Goods and Services Tax (GST) Council has reduced taxes on televisons (TVs), air conditioners (ACs) and dishwashers to 18% effective from September 22, 2025.

The reduction in the tax is a part of the broader restructuring of the goods and services tax aiming to simplify the system and make commonly used products more affordable.

What are the new rates?

Air Conditioners (ACs), which were previously taxed at 28% will now be taxed under the 18% slab. The reduction in taxes is expected to make the appliance cheaper, especially since the demand for cooling products is rising across the country.

Dishwashers, too, have been shifted from the higher 28% category to 18%, putting them on par with other major domestic appliances.

A major change in the tax structure is also seen in televisions and computer monitors.

Screens up to 32 inches were taxed 18% GST, while larger models with more than 32 inches were taxed 28% under the old tax regime.

However, with the revisions in the GST, this distinguishing factor has been removed. All TVs and monitors, irrespective of size, will now be taxed at a uniform GST of 18%. This is likely to bring down the price of larger televisions and monitors, taxed more heavily until now.

“GST on air conditioners and dishwashers has been reduced from 28% to 18%. Earlier TVs and monitors up to 32 inches earlier attracted 18% GST while larger TVs and monitors attracted 28% GST. Now all TVs and monitors will be uniformly taxed at 18%.” the Finance Ministry said.

By lowering taxes from 28% to 18% on items such as air conditioners, dishwashers, televisions, and monitors, the government has aimed to ease household spending and provide relief to consumers. The decision reflects the larger effort to simplify GST and reduce the overall burden on everyday purchases.