The GST Reform Bill has been passed by the GST Council and is set to go into effect from September 22, 2025. The new goods and services tax structure has been tweaked, and some slabs have been removed. Previously, commodities were divided among 4 slabs: 5%, 12%, 18%, and 28%. The new policy has gotten rid of the 12% and 28% slabs. A new 40% slab has been introduced for ‘sin and luxury goods’. Essential commodities will be taxed at 5% while standard goods and services will incur an 18% charge. With the festive season on the horizon, let’s take a look at how the new GST 2.0 policy will impact consumer tech products.
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GST 2.0 Reforms: Impact on consumer tech
LCD and LED TVs have been split into 2 GST slabs, based on their size. 32-inch and larger TVs, which previously incurred 28% GST, will now be charged at 18%. Units smaller than 32 inches will move from the 12% slab to 5%. The 18% rate also applies to projectors and monitors.
Air conditioners, washing machines, dishwashers, and refrigerators will also become more affordable under the new GST 2.0 policy. These appliances will now be charged at 18% instead of 28%. As a result, air conditioners could get their prices slashed anywhere between Rs 1,500 – Rs 2,500
There has been no movement in policy when it comes to smartphones. They will continue to be charged at 18%. The same applies to tablets and laptops. Since the lower GST rate is 5%, we don’t expect smartphones to get such a sharp drop anytime soon.
Frequently Asked Questions (FAQs)
When will the new GST rates come into effect?
The reformed GST policy will come into effect on September 22, 2025.
Will smartphones get cheaper under the new GST rates?
Smartphones will continue to be charged GST at 18% and therefore will not get cheaper.
Which tech products will get more affordable with the new GST rates?
Air conditioners, TVs, dishwashers, and refrigerators have been moved from the 28% GST slab to 18%. As a result, they will get more affordable.
What is the new GST rate on medicines?
Medicines, along with other essential commodities, will be charged GST at 5%. Some drugs will be charged at 0%.
Are life insurance policies exempt from GST?
Yes, all life insurance policies are now exempt from GST.
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Final Thoughts
As mentioned earlier, the new GST slabs will come into effect on September 22, 2025. This timeline coincides with the festive season sale period. If you’re looking to buy an electronic appliance, the September-October window might be the best time to make the purchase.
