In recent years, the Goods and Services Tax (GST) has revolutionized the way taxes are applied to various goods and services in India. Among the many items affected by this tax reform is the air conditioner (AC), which has become an essential household appliance. If you’re considering buying an air conditioner or just want to understand how GST on AC impacts your purchase, this guide will provide you with all the information you need.
What is GST on AC ?
GST on AC is the tax levied on the purchase of these cooling appliances. Under the GST regime, the rate at which GST is applied to air conditioners can vary depending on several factors, including the type and capacity of the AC. As of the latest updates, the GST rate for air conditioners is generally set at 28%. This rate is relatively high, reflecting the luxury nature of air conditioners as opposed to essential goods.
How This Affects the Cost When GST On AC Applied ?
The impact of GST on the price of air conditioners is significant. When you purchase an air conditioner, the base price of the unit is augmented by the GST rate. For instance, if you are buying an air conditioner priced at ₹30,000, with a GST rate of 28%, the total tax added would be ₹8,400, making the total cost ₹38,400. This can be a substantial addition to your budget, so it’s important to factor in the GST when planning your purchase.
