The government has announced a big change that will make several home appliances and electronics cheaper in India. From September 22, 2025, goods that were earlier taxed at 28 percent GST will now fall under 18 percent GST. This step is part of a larger plan to reduce the number of tax slabs and make GST simpler. Now, most items will be in just two groups, one at 5 percent and the other at 18 percent.
The new rates will directly affect the prices of common household products. Items such as air conditioners, televisions above 32 inches, monitors, projectors, and dishwashing machines will now cost less. For customers, this means they will not have to pay as much tax when buying these products.
To understand the impact, consider this example. A television that costs ₹40,000 was earlier taxed at 28 percent. That added ₹11,200 in GST, making the total price much higher. With the new 18 percent rate, the tax will be only ₹7,200, which will save the buyer about ₹4,000 on that single purchase. Similar savings will apply when buying air conditioners, dishwashers, and projectors.
The decision is not limited only to electronics. The government has also reduced GST on other categories. The list includes essential goods, healthcare services, education, and farm machinery. Officials say this move will not only bring down prices for the public but also help increase demand and make the tax system easier to follow.
Since GST was introduced in 2017, many businesses and industry experts have asked the government to simplify the system. The highest 28 percent tax slab was long considered too heavy for consumer goods. With this new reform, fewer products will remain under the highest bracket. Experts believe this is one of the most important changes in the GST system since it first came into effect.
The new tax rates are expected to make large household appliances and key services more affordable in the coming months. This step is also seen as a way to boost the home appliance and consumer electronics market while reducing the overall tax burden on people.