Big Diwali Gift: New GST Rates to Make ACs, TVs, and Refrigerators Cheaper from September 22

Ahead of the festive season, the central government has announced a major tax reform that will bring relief to millions of households. The 12% and 28% GST slabs have been abolished, leaving only 5% and 18% tax categories in place. This restructuring will directly reduce the prices of consumer durables such as air conditioners, refrigerators, washing machines, televisions, as well as vehicles like cars and bikes.

The revised GST rates will come into effect from September 22, 2025, making shopping during Navratri and Diwali significantly more affordable.

What Will Be Cheaper Under the New GST Rates?

The most noticeable price drop will be in big-ticket home appliances and electronics. For example:

• Air Conditioners (ACs): A 1.5-ton Voltas AC currently priced at ₹41,990 under the 28% GST slab will now cost around ₹38,709 under the revised 18% GST. That’s a direct saving of ₹3,281 for consumers.

• Smart TVs: A 40-inch smart television priced at ₹35,990 earlier will now come down to around ₹33,178. This translates to a savings of ₹2,812 for buyers.

• Other Appliances: Refrigerators and washing machines will also see substantial reductions in price, making them more accessible for middle-class families.

Online Shopping to Become Even More Attractive

E-commerce giants like Amazon and Flipkart, which already roll out massive festive discounts, are expected to amplify the benefits. With the reduced GST rates combined with seasonal offers, shoppers can expect to save significantly more on their Diwali purchases.

Relief for Middle-Class Families

The move is being welcomed especially by middle-class households, for whom the high GST rates had been a burden when purchasing durable goods. The revised tax structure will ease financial pressure and encourage families to upgrade their homes with essential and luxury items.

Festive Sales Expected to Surge

Market experts believe this tax reform could lead to record-breaking sales during Navratri and Diwali. Retailers are anticipating a massive demand surge across categories as consumers rush to take advantage of the double benefits of reduced taxes and festival discounts.

A Festive Gift from the Government

This decision is being hailed as a “Diwali gift” from the government to the people of India. With the cost of essential and lifestyle products becoming lighter on the pocket, both needs and aspirations will now be easier to fulfill.

Industry insiders suggest that this reform may not only boost consumer sentiment but also provide a strong push to the retail and manufacturing sectors ahead of the festive season.