TVs and ACs in Every Home! 56th GST Council Meeting promises Rate Cuts on Domestic Consumer Goods
The 56th GST Council Meeting, following PM Modi’s Independence Day announcement, approved sweeping next-gen reforms with major rate cuts on household goods, electronics, healthcare, education, agriculture, and automobiles, while simplifying the tax structure.
The government wants you to just switch on the AC, relax, and watch TV while munching on a bowl of namkeen - all at lower GST rates! That’s the spirit behind the sweeping “Next-Gen GST Reforms,” which the 56th GST Council Meeting has described as a festival-time relief package for households” for the nation.
The meeting, chaired by Finance Minister Nirmala Sitharaman, delivered what is being called a "historic Diwali gift" to the nation. From farmers to small businesses, households and enterprises, the decisions are aimed at making living more affordable while boosting economic activity.
Prime Minister Narendra Modi, in his Independence Day address from the Red Fort on 15th August 2025, revealed the next-generation GST reforms of India’s landmark tax system. These changes, he emphasized, are designed not only to ease the everyday lives of citizens but also to simplify business for small traders and entrepreneurs nationwide.
The previous four-tiered system has been simplified into a citizen-friendly “Simple Tax” with just two principal rates, that is, 18% and 5%. A special 40% de-merit rate will apply only to select goods and services such as tobacco products.
Domestic appliances and vehicles, once burdened with high taxes, have seen major rate cuts, bringing the dream of TVs and ACs in every home closer to reality. With GST rationalisation, some of the most widely used household gadgets and lifestyle products have now become significantly cheaper. The following are:
Air Conditioners - slashed from 28% to 18%, making cooling affordable for middle-class households.
Televisions (above 32 inches, including LED & LCD models) - reduced from 28% to 18%, ensuring bigger screens at lower costs for families.
All Televisions up to 32 inches - already in the 18% slab, ensuring uniformity and no price distortion across TV sizes.
Monitors & Projectors - down from 28% to 18%.
The revised GST rates on goods and services will come into force from 22nd September 2025.
With a strong focus on easing the daily expenses of ordinary citizens, the GST reforms ensure that essentials, appliances, healthcare, and education all become more affordable. By cutting rates on domestic consumer goods like TVs, ACs, soaps, and bicycles, the Council has taken a step toward putting modern comforts and necessities within reach of every household.
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