GST Slab Reduction Spurs Festive Cheer for Appliance Industry

The government's proposal to reduce the GST on air-conditioners from 28% to 18% is expected to boost the appliance sector, encouraging consumer purchase during the festive season. This move will make ACs more affordable and increase sales, particularly for energy-efficient models. Manufacturers urge quick implementation of the changes.

In a strategic move aiming to stimulate the appliance market, the government plans to slash GST on air-conditioners from the existing 28% to 18%. This reduction is set to make AC units more affordable, with expected price cuts ranging from Rs 1,500 to Rs 2,500 depending on the model, just in time for the festive shopping season.

Industry leaders, including Blue Star's MD B Thiagarajan and Godrej's Kamal Nandi, have praised the initiative, noting it could significantly increase AC penetration among Indian households. They anticipate not only heightened consumer interest but also a boost in sales of premium, energy-efficient models.

With appliance manufacturers projecting a surge in demand, akin to a 20% growth year-on-year, the sector remains hopeful that the government will expedite the implementation of these GST adjustments. This price revision is seen as a pivotal move to drive consumerism and enhance living standards across the nation.

(With inputs from agencies.)