India has officially rolled out GST 2.0, simplifying the indirect tax structure and reshaping how goods are taxed. Under this new system, the earlier 12% and 28% slabs have been scrapped. Instead, the government has introduced just three key slabs—5% and 18% for standard goods and a new 40% slab for luxury items. Essential daily-use products will continue to remain tax-free.
This reform is particularly significant for the electronics and household appliances sector. Goods that previously fell under the 28% tax rate—like air conditioners, refrigerators, washing machines, dishwashers, and large-screen televisions—are now placed in the 18% slab, making them more affordable.
But there’s a catch: mobile phones and laptops remain taxed at 18%, with no price change. Let’s break down what GST 2.0 means for consumers.
New GST 2.0 Slabs
- 0% GST – Essential items (food grains, milk, vegetables, medicines, education, etc.)
- 5% GST – Common household goods
- 18% GST – Standard goods and electronics like ACs, refrigerators, washing machines, TVs, dishwashers
- 40% GST – Luxury goods and premium products
What’s Cheaper Under GST 2.0?
- Air Conditioners & Dishwashers: Expected price drop of ₹3,500–₹4,500 per unit.
- Refrigerators & Washing Machines: Prices likely to fall by around 8–9%.
- Large-Screen TVs (above 32 inches): Major price reduction due to tax cut.
This move is expected to encourage middle-class families to purchase household appliances more easily, boosting demand in the consumer electronics sector.
Why Mobiles and Laptops Didn’t Get Relief
Despite tax cuts on many electronic items, mobiles and laptops remain in the 18% GST bracket. The government decided against lowering rates for the following reasons:
- PLI Incentives – Manufacturers already benefit from the Production Linked Incentive (PLI) scheme, which reduces production costs.
- Import Duty Adjustments – Current tariffs and import duty structures balance out at the 18% GST rate.
- Revenue Concerns – Reducing GST on high-demand items like mobiles could result in significant revenue loss for the government.
As a result, mobile phone and laptop buyers will need to wait for festive sales or promotional offers rather than expecting tax-related price drops.
Also See: GST Rates in India
Final Thoughts
With GST 2.0, India has taken a step toward a simpler and more transparent tax system. Essentials remain tax-free, household goods fall under the 5% slab, everyday electronics move to 18%, and luxury products are taxed at 40%.
This change will make appliances like ACs, washing machines, and large TVs more affordable, giving relief to middle-class households. However, mobiles and laptops will stay at 18%, keeping their prices unchanged for now.