Central government Under the improvement in GST system, the air conditioner (AC) has been proposed to be removed from the 28 percent GST slab to 18 percent GST slab. With this proposal of the government, companies making home appliances expect good sale during the upcoming festivals. After the implementation of GST, AC prices will be reduced from Rs 1500 to Rs 2500 on the basis of different models. The price is going to be reduced by the government recently after the reduction in EMM tax and amendment in repo rate by the Reserve Bank of India.
TV with more than 32 inches size will also be cheap
This step will not only increase the reach of people to AC, but will also increase the demand for ‘premium AC’, where people will buy low power -eating models due to cost profit. Along with this, this will also help in reducing GST slab on TV with more than 32 inches size to 18 percent from the current 28 percent.
What is the reaction of companies
Blue Star Managing Director B. Tyagarajan, describing it as a great step, urged the government to implement these changes soon as people are now waiting for the decision to come into force before the purchase of Room Air Conditioner (RAC). Tyagarajan said, “Now no room will buy AC in August, waiting till September or 1 October. What can you do in the meantime? Dealers will not buy and customers will not buy. “Asked about the price benefits received by customers, he said,” It will be about 10 percent “because GST is imposed at the final price.
AC will be cheaper from Rs 1500 to Rs 2500
Manish Sharma, chairman of Panasonic Life Solutions India, said that the industry expects about 12 percent GST on energy efficient products and will cost 18 percent GST on the rest of the products. He said, “However, in a situation when GST is reduced from 28 to 18 percent on AC and other equipment, prices in the market will directly decrease by 6-7 percent as GST is usually imposed on a base price.” So this is unprecedented. ”Sharma said that this will reduce the price of AC from 1500 to 2500 rupees for the final consumer on the basis of model.
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