The government has recently announced a reduction in Goods and Services Tax (GST) on air conditioners, leading to an estimated 10% decrease in taxes on AC purchases. The GST on ACs and similar electronics has been reduced from 28% to 18%, with the new rates taking effect from September 22nd. This is good news if you are in the market for an air conditioner. Let’s look at how much you can save on an AC costing ₹35,000.
**How Much Will You Save?**
The GST reduction means AC buyers could save thousands. Typically, a 1 or 1.5-ton AC in India starts at ₹35,000. However, this price is set to fall following the GST cut. Let’s break down the numbers.
**GST Rates: Before and After**
It’s essential to understand the tax changes. Previously, ACs were taxed at 28% GST, making them costly. The government has now lowered this to 18%. This change will directly benefit consumers as prices drop and market competition increases.
**Savings on a ₹35,000 AC**
If an air conditioner costs ₹35,000, you could save approximately ₹3,150 after the GST reduction. The tax was about ₹6,800 with the 28% GST, but it’s now around ₹3,150 at 18% GST. This means you save about 10% directly.
So, a ₹35,000 AC might now cost about ₹31,850, saving you over ₹3,150. Plus, you might find card discounts or other special offers during the festive season.