19 Aug 2025: This Diwali, bringing home a new TV, AC, or car could become easier than ever. Just before the festive season, the central government is preparing to give a big gift to the common people. The GST Council is planning to reduce tax rates on everyday essentials, which is expected to directly bring down prices for consumers.
What will get cheaper?
The government is considering reducing GST on expensive home appliances like televisions larger than 32 inches, air conditioners, and dishwashers from 28% to 18%. If the proposal is approved:
- TV prices could drop by up to ₹10,000.
- ACs could become cheaper by ₹1,500 to ₹2,500 depending on the model.
- Prices of other appliances like dishwashers and refrigerators will also see a significant cut.
Massive boost in sales
Industry experts believe this move will lead to a huge surge in festive season sales. Customers who had been postponing purchases due to high prices will now be able to spend more freely. Industry leaders such as Blue Star MD B. Thiagarajan and Panasonic India Chairman Manish Sharma have welcomed the government’s decision and urged for its quick implementation. They said this could provide consumers relief of 6–10% in prices.
Cars to get cheaper too!
Not just electronics, the government is also planning to cut taxes on entry-level cars and small SUVs. Currently, these vehicles attract 28% GST plus a 1–3% cess, pushing the total tax burden up to 31%. Under the proposed changes, they could be brought under the 18% slab. This would make cars like Maruti Alto K10, Renault Kwid, Tata Punch, Hyundai Exter, Maruti Dzire, Tata Tigor, and Hyundai Aura much more affordable.
When will the decision be made?
The GST Council meeting is scheduled for August 20–21. It is expected that the final approval will come in September 2025, with the new rates being implemented before Diwali.
Summary:
This festive season brings relief as TVs and ACs become cheaper by up to ₹10,000, while reduced GST on cars further eases consumer expenses.