GST Rate Cut on Electronics: What It Means for Consumers and Retailers

India’s Goods and Services Tax (GST) system has entered a new era with the rollout of GST 2.0, effective from September 22, 2025. The Council has simplified the structure into a 5% slab for essentials, 18% for standard goods, and 40% for luxury/sin items, replacing the earlier complex categories.

One of the biggest beneficiaries of this change is the electronics sector. For years, appliances like air conditioners, refrigerators, washing machines, dishwashers, and large-screen TVs were taxed at a steep 28%, making them expensive for the middle class. The new GST slab brings these items down to 18%, making them significantly more affordable.

But not all gadgets got relief. Questions like “What is the new GST on mobile phones?” or “Will GST on laptops drop in 2025?” are top of mind for buyers. While many electronics saw cuts, mobiles and laptops remain unchanged at 18%, leaving their prices steady.

This blog breaks down the new GST rates list 2025, explains the GST new tax slab, and highlights what it means for consumers, retailers, and the economy.

New GST Slab Structure

The GST Council’s decision in September 2025 has been described as a reset for India’s indirect tax system. Instead of multiple slabs that often confused consumers and businesses, the government has introduced a simplified structure:

This new GST tax slab approach aims to reduce compliance burden, improve transparency, and make prices easier for consumers to understand. The new GST rates list 2025 reflects this philosophy: essentials get relief, standard goods see rationalization, and sin items are taxed heavily to discourage consumption if harmful or non-essential products while optimizing revenue.

GST Rates on Electronics – What Has Changed

The most visible impact of the new GST slab is on consumer electronics. For years, appliances were placed under the 28% “luxury” bracket, even though items like air conditioners, refrigerators, washing machines, and dishwashers are now considered household essentials.
With the new GST rates effective September 22, 2025:

Revised GST slabs on Electronic (from 28% to 18%)

• Air Conditioners (ACs)
• Refrigerators
• Washing Machines
• Dishwashers
• Large-screen TVs (above 32 inches)
• Monitors and Projectors

This shift means a direct price cut of around 8–9% for consumers. For example, a washing machine that cost ₹30,000 under the old regime could now be priced closer to ₹27,500.
For households planning festive season purchases, this cut in GST on electronics is one of the most significant changes in recent years.

New GST Slab on Mobile Phones & GST on Laptops

While appliances got relief, gadgets like smartphones and laptops stayed where they were. The GST on mobile phones and the GST on laptops remain unchanged at 18%, part of the standard goods category.

Why There’s No Reduction?

• Already in the standard slab: Unlike ACs and refrigerators that dropped from 28%, mobiles and laptops were already at 18%.
• Revenue considerations: Smartphones form one of the largest consumer markets in India. Dropping GST further would lead to significant revenue losses for the government.
• Industry dynamics: The mobile phone industry benefits more from PLI (Production Linked Incentive) schemes and import duty adjustments than from GST tweaks.

So, if you were waiting for the new GST on mobile phones or a cut in GST on laptops, the news may disappoint you. Prices for these devices remain stable, and buyers may instead have to rely on seasonal discounts for savings.

Expected Price Drops – Appliances & Devices

The new GST rates list 2025 is expected to translate into tangible price drops for large appliances:

• Air Conditioners & Dishwashers: As per analysts, l Air Conditioners and dishwashers are likely to get cheaper by ₹3,500–₹4,500 per unit, thanks to the shift from 28% to 18%.
• Refrigerators & Washing Machines: As per reports, retail prices could fall by 8–9%, making mid-range models more accessible to the middle class.
• Large-screen TVs: A high-demand category during festivals, TVs above 32 inches are expected to see significant cuts, improving affordability for families upgrading their home entertainment.

This is why many households are eyeing the festive season as the perfect time to upgrade — the GST on electronics has finally come down to a level aligned with consumer expectations.