GST Rate Cut on ACs + Voltas Special Offers: How Much Will You Save?
If you have ever waited for the festive months to buy an AC, then this is the right time to do it. With the latest GST rate cuts, you must pay less tax, which means more savings.
For a big-ticket item like an air conditioner, the GST on AC plays an important role in the final bill. The recent revision of the new GST rate on air conditioner purchases changes everything, especially with the festive season around the corner.
In India, consumer sensitivity to upfront cost is high, even in categories where long-term running costs like electricity bills matter. That is why the current GST cut, along with its timing close to the festive shopping cycle, has become a major factor in influencing buying decisions. In this article, we will dive deeper into what these GST rate cuts mean for air conditioners and how you can take advantage of it.
What Is the GST Reduction and Its Immediate Impact?
The notification, effective from 22nd September, revised the air conditioner GST rate downward. This directly lowers the Market Operating Price (MOP) of many models. For categories like ACs, where average ticket sizes are high, such tax cuts have a visible influence: they bring prices down to levels that open the door for more buyers.
To put it into perspective, when the new GST rates list 2025 was rolled out, air conditioners were highlighted as one of the main product segments that would have reduced taxes.
The recent GST rate cut on air conditioners, from 28% to 18% (under 2 tonnes) is not just about lowering prices for individual buyers. It is already reshaping the market in several ways:
- Lower prices: With reduced GST, ACs are cheaper by ₹1,500–₹2,500 per unit, depending on the model.
- Higher demand: Analysts expect a 9–10% increase in sales volume if brands continue passing the full benefit to customers.
- Business impact: AC manufacturers may see a 2–5% rise in earnings estimates over the next two years due to stronger demand.
AC Models Covered Under the New Price Structure
The GST revision covers commonly purchased configurations across split and window air conditioner sale models.
Here’s how it breaks down:
|
Category |
Models Included |
Why These Matter |
GST Before vs Now |
|
Inverter Split ACs |
• 1.5 Tr 3-Star • 1.5 Tr 5-Star • 1 Tr 3-Star |
Energy-efficient models that balance electricity savings with upfront cost. |
Earlier 28% → Now 18% |
|
Fixed Speed Split AC |
• 1.5 Tr 3-Star |
A cost-conscious choice for buyers who want affordability in a split AC. |
Earlier 28% → Now 18% |
|
Window ACs |
• 1.5 Tr 5-Star Inverter • 1.5 Tr 3-Star Fixed Speed |
Traditional units, easier to install and maintain, still popular in many cities. |
Earlier 28% → Now 18% |
These categories of air conditioners cover the most popular air conditioners that are used in India. This means the GST rate cut will make a difference where it matters the most.
What Does the Price Calculation Will Look Like?
Numbers explain this rate cut in the best way. Take an example of a Voltas 1.5 Tr 3-Star Inverter Split AC. Its earlier MRP was about ₹45,000. With the revised GST on air conditioners, the MOP comes down to roughly ₹42,500.
Along with the rate cut, there are additional offers like:
·