The landscape of electronics in India has undergone a major transformation following the GST 2.0 reforms effective from September 22, 2025. For a long time, walking into an appliance store meant seeing premium price tags driven largely by a steep 28% tax. However, the government has now reclassified many of these items, moving them from the luxury category into the standard mass-use category. This shift isn't just a technical change; it's a strategic move to boost domestic manufacturing and make modern living more accessible for everyone. Whether you're upgrading your home or setting up a new office, the new two-slab structure (5% and 18%) is designed to put more technology into more hands.

The Big News: The 10% Price Drop

The most significant headline of the 2025 reform is the abolition of the 28% slab for nearly all household appliances. Previously, items like air conditioners and large-screen TVs were taxed at the same rate as luxury yachts.

The New Standard Rate: Most major appliances are now taxed at a flat 18%.
The Impact: This 10% tax cut translates to a direct price drop of about 8–9% at the retail level. On an AC worth ₹40,000, you are now saving roughly ₹4,000 compared to early 2025.

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What got cheaper? (28% → 18%)

Product

Old GST

New GST (2025-26)

Air Conditioners (ACs)

28%

18%

Televisions (All sizes, including >32)

28%

18%

Refrigerators & Freezers

28%

18%

Washing Machines

28%

18%

Dishwashers

28%

18%

Monitors & Projectors

28%

18%

What stayed the same? (The Stable Gadgets)

While home appliances saw a massive cut, mobile phones and computing devices were already sitting in the 18% bracket. To prevent massive revenue losses, the government has kept these rates steady in the 2025-26 cycle.

Mobile Phones & Smartphones: Still at 18%. Whether it's a budget feature phone or the latest flagship, the rate remains unchanged.
Laptops and PCs: Still at 18%. This includes tablets and iPads as well.
Audio Gear: Headphones, earbuds, and speakers remain at 18%.

The Merit List: Electronics at 5%

To support the Green India and Digital India missions, certain essential and eco-friendly electronics have been moved to the lowest possible tax bracket.

LED Lamps & Fixtures: Most have been moved to the 5% slab to encourage energy efficiency.
Renewable Energy Tech: Solar water heaters, solar lanterns, and photovoltaic cells have dropped from 12% to 5%.
EV Infrastructure: Electric vehicle chargers remain at a low 5% to promote the shift away from petrol.
Medical Electronics: Devices like hearing aids and certain diagnostic tools also fall under the 5% merit rate.

Why does this matter for your budget?

The move to GST 2.0 isn't just about a lower percentage; it’s about simplifying the shopping experience and encouraging Make in India.

Uniform TV Pricing: Previously, a 32-inch TV was 18% while a 43-inch one was 28%. This made upgrading confusing. Now, all TVs are 18%, removing the size penalty.
Manufacturing Boost: With lower taxes, demand for ACs and washing machines is expected to skyrocket. This allows local manufacturers (like Voltas, LG, and Samsung) to scale up production, which eventually lowers prices even further.
ICT Affordability: By cutting GST on monitors and projectors from 28% to 18%, the government has lowered the setup costs for schools, start-ups, and digital learning centers.

Summary Table: Electronics GST at a Glance

Category

Item

GST Rate (2025-26)

Personal Tech

Mobiles, Laptops, Tablets

18%

Home Cooling

ACs, Fans, Air Coolers

18% (Fans at 5%)

Entertainment

All LED/LCD/OLED TVs

18%

Kitchen/Laundry

Fridge, Washing Machine, Dishwasher

18%

Green Tech

Solar panels, EV Chargers

Medical/Security

Two-way Radios, Medical Tools

Conclusion

The 2025-26 tax year marks a Golden Era for the Indian consumer durable sector. By stripping away the luxury 28% tax on basic household needs like refrigerators and washing machines, the government has recognized these as essentials of modern life. While your smartphone or laptop won't see a tax-led price drop, your kitchen and living room upgrades are now significantly more affordable. If you’ve been waiting to buy that premium 55-inch TV or a smart inverter AC, the 10% saving on your final bill makes now the best time to buy.

Frequently Asked Questions (FAQs)

Is a 55-inch Smart TV really 18% GST now?

Yes. Before September 2025, it was 28%. All screen sizes are now standardized at 18%.

Why didn't the price of my favorite smartphone go down?

Smartphones were already at 18% GST. The 2025 reforms focused on bringing items down from the 28% and 12% brackets.

Is the 18% GST rate applicable to used electronics?

Yes, but for registered dealers, GST is typically charged on the margin (the difference between buying and selling price), not the full value.

Can I claim GST back if I buy a laptop for my office?

Absolutely. If you have a GST-registered business, you can claim Input Tax Credit (ITC) on the 18% GST, making the laptop effectively tax-free for your business costs.

What is the GST on an iPhone in 2025?

It is 18%, the same as any other smartphone or feature phone in India.

Are computer parts like RAM and Hard Disks also 18%?

Yes, most computer peripherals and internal components fall under the standard 18% slab.

Is there any GST on software?

Yes, software (whether on a disc or downloaded) is generally taxed at 18% as it is treated as a service or a standardized good.

What is the GST rate on vacuum cleaners and dishwashers?

Both have been moved from 28% to the lower 18% slab in the latest reforms.

Do I pay GST on the extended warranty?

Yes, extended warranties are treated as a service and attract 18% GST.

How do I verify if I'm being charged the correct new rate?

Check your invoice for the HSN code. For example, TVs are under 8528. The tax amount shown should be 18% (9% CGST + 9% SGST for local sales) of the base price.

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