The government recently announced a reduction in the Goods and Services Tax (GST) rates on air conditioners. This decision will result in a tax reduction of approximately 10% on the purchase of ACs. The government has declared a reduction in the 28% GST on electronics products like ACs to 18%. The new rules are set to be implemented from September 22nd. If you are also preparing to buy an AC, this news is for you. Here, we will find out how much tax you will save on an AC priced at ₹35,000.
**How Much Will You Save on AC Purchase?**
Buyers of ACs can benefit from thousands of rupees after the GST reduction by the government. In India, a 1 or 1.5-ton AC usually starts at a price of ₹35,000. But now, its price is going to decrease after the GST cut. Let’s understand the math.
**What is the GST rate before and now?**
It is important to understand the tax before. Previously, up to 28% GST was levied on ACs, which made its price out of reach for the average customer. Now, the government has reduced this tax slab to 18%. This will have a direct impact on customers because the price will also decrease due to the reduction in tax, and competition in the market will increase.
**How much tax will be reduced on a ₹35,000 AC?**
For example, if an air conditioner costs ₹35,000, then after the GST cut, you can save up to ₹3,150. Earlier, with 28% GST, the tax was around ₹6,800, which will now be around ₹3,150 with 18% GST. That means you can save directly up to 10%.
This means that an air conditioner costing ₹35,000 can now be available to you for around ₹31,850. That is, you will be able to save more than ₹3,150. Also, if you buy an AC during the festival season, you can also get card discounts and other offers.