Currently, air conditioners are subject to a 28% GST. However, after the new rates are implemented on September 22nd, the GST on ACs will be reduced to 18%. Facing a decline in sales during the June quarter due to unseasonal rains, AC manufacturers are now providing incentives such as easy financing options, free installation, extended warranties with gas charging, and zero-cost EMIs.
B Thiagarajan, Managing Director of Blue Star, noted a positive response from customers. Dealers are facilitating pre-bookings, but the bills will be issued on September 22nd, coinciding with the implementation of the new GST rates.
The upcoming GST rate reduction on ACs is expected to boost sales and provide substantial savings for consumers looking to purchase new air conditioning units. With pre-booking offers and various promotional schemes, the festive season promises to be a favorable time for AC purchases.