The government has recently announced a reduction in the Goods and Services Tax (GST) on air conditioners. This move will lead to a tax cut of approximately 10% on AC purchases. The GST on ACs and similar electronic products has been decreased from 28% to 18%, with the new rates taking effect from September 22nd. If you’re considering buying an AC, this information is relevant to you. Let’s examine how much you can save on a ₹35,000 AC.
**Savings on AC Purchases**
Consumers who purchase ACs stand to benefit significantly from the government’s GST reduction. In India, a 1 or 1.5-ton AC commonly starts at around ₹35,000. However, the price will decrease following the GST reduction. Let’s analyze the financial implications.
**Previous and Current GST Rates**
Understanding the tax structure is crucial. Previously, ACs were subject to a 28% GST, making them expensive for many consumers. This has now been reduced to 18%. The effect on consumers will be substantial, as prices will decrease, and market competition will increase.
**Tax Savings on a ₹35,000 AC**
For an air conditioner priced at ₹35,000, the GST cut could result in savings of approximately ₹3,150. Previously, at a 28% GST, the tax amounted to around ₹6,800, which will now be approximately ₹3,150 at 18% GST. This translates to a direct savings of up to 10%.
Consequently, a ₹35,000 air conditioner may now be available for around ₹31,850, resulting in savings exceeding ₹3,150. Furthermore, if you purchase an AC during a festive season, you might also avail of card discounts and other promotional offers.