What Is the GST on Air Conditioners in India

Air conditioners classified under HSN heading 8415 currently attract 18% GST in India. The rate was reduced from 28% to 18% with effect from 22 September 2026. This applies to air-conditioning machines covered by the relevant classification, including commonly purchased residential ACs. The final amount paid can still vary based on the model, base price, discounts, installation charges, and seller pricing.

• Air conditioners under the applicable HSN 8415 classification attract 18% GST, which is included in the final price shown on the invoice.
• The GST rate was reduced from 28% to 18% with effect from 22 September 2026, lowering the tax component compared with the earlier rate.
• The lower GST rate can reduce the overall tax burden on an AC, although the actual saving depends on the product's pre-tax price and selling price.
• Split and window ACs covered under the relevant air-conditioning classification are generally subject to the applicable 18% GST rate.
• Buyers can check the final invoice to see the taxable value, GST charged, discounts, and total amount payable before completing the purchase.
• HSN codes are used to classify goods for GST purposes and help sellers apply the appropriate tax rate when preparing an invoice

You can also buy a new AC on Easy EMIs at over 1.5 lakh partner stores across 4,000 cities, including Reliance Digital, Croma, and Vijay Sales. 

Air conditioners classified under HSN heading 8415 currently attract 18% GST in India. The rate was earlier 28% and was reduced to 18% with effect from 22 September 2026. The Central Board of Indirect Taxes and Customs lists air-conditioning machines under heading 8415 at an 18% total GST rate. This change reduces the GST component compared with the earlier rate, but the final price of an AC does not necessarily fall by a fixed amount. The selling price can also depend on the model, manufacturer, retailer, discounts, installation, and other applicable charges. Buyers can therefore compare the final tax-inclusive price and invoice details when selecting an AC.

If you want to replace your AC, visit any of Bajaj Finance's 1.5 lakh partner stores — like Vijay Sales, Croma, Reliance Digital, and more — across 4,000 cities, including Tier 2 cities like Jaipur, Lucknow, Kochi, Bhopal, and more in India. Choose your preferred model, then use the Bajaj Finance Insta EMI Card or Bajaj Finance Easy EMI Loan to finance it. Convert the cost into Easy EMIs that suit your monthly budget and enjoy zero down payment on select models — take it home without any upfront payment. Check your loan eligibility online in minutes, so you know exactly what you can get before you step into the store.     

The revised GST rate of 18% is applicable to all types of air conditioners in India. However, understanding the differences between these types can help you make an informed decision based on your GST applies to air-conditioning machines according to their applicable HSN classification. Split ACs and window ACs covered under HSN heading 8415 attract 18% GST, while the exact 8-digit classification for a portable AC can depend on its technical specifications. Checking the product invoice can help confirm the applicable HSN code and GST rate for a specific model.

The GST rate should be checked against the applicable product classification rather than the AC type alone. Buyers can refer to the tax invoice for the HSN details and GST amount charged on the specific model.

GST forms part of the tax-inclusive amount paid when an AC is purchased. The GST rate for air-conditioning machines covered under the applicable classification was reduced from 28% to 18% with effect from 22 September 2026. This lowers the GST component compared with the earlier rate, although the final price paid can vary depending on the model's taxable value, discounts, seller pricing, installation, and other applicable charges.

• Lower GST component: An 18% GST rate results in a lower tax component than the earlier 28% rate when the same taxable value is used for comparison.
• Effect on price: The lower rate can reduce the tax-inclusive price of an eligible AC, although the actual selling price also depends on the seller, model, offers, and other pricing factors.
• Model pricing: ACs with different capacities, brands, energy ratings, and features can have different taxable values and therefore different GST amounts.
• Discounts and offers: Eligible discounts may reduce the taxable value on which GST is calculated, depending on when and how the discount is offered and the applicable GST rules.
• Installation costs: Installation, delivery, accessories, or other separately supplied goods and services may have separate tax treatment and should not automatically be assumed to carry the same GST rate as the AC.

• Final invoice: The tax invoice provides the clearest view of the taxable value, GST charged, discounts, additional charges, and total amount payable.

  
  

For example, if an AC has a taxable value of Rs. 40,000, 18% GST would be Rs. 7,200, making the tax-inclusive amount Rs. 47,200 before any separately applicable charges. The actual purchase price should therefore be checked on the final invoice rather than estimated using a fixed saving.

You can save even more on your AC purchase by using the Maha Bachat Savings Calculator from Bajaj Finance. Combine dealer offers, brand offers, and Easy EMI offers to bring down the cost of your purchase. Calculate your extra savings today.

For homeowners in India, the GST on an AC is 18% when the air-conditioning machine falls under the applicable HSN heading 8415. The same 18% GST rate applies to eligible air-conditioning machines used for commercial purposes. The final purchase cost can vary based on the taxable value, discounts, installation, delivery, and other applicable charges.

Both imported and domestically supplied ACs can attract 18% GST when they fall under the applicable HSN classification. Imported ACs can also be subject to customs duties and other import-related charges, which can increase the overall landed cost. Domestic purchases generally do not involve these import duties. Buyers should therefore compare the final tax-inclusive price and invoice details rather than comparing the GST rate alone.

Note: For residential use, explore products like a 1-ton ACs that are perfect for small rooms.

The reduction in GST lowers the tax component compared with the earlier 28% rate, but buyers can also compare the complete purchase value to find a suitable AC deal. Comparing models with similar capacities and features, checking applicable discounts, considering energy efficiency, and evaluating Easy EMI options can help manage the overall purchase cost.

• Compare final prices: Compare the final tax-inclusive prices of similar AC models rather than looking only at their advertised or pre-tax prices.
• Check available offers: Look for applicable brand and retailer offers that can reduce the purchase price or provide other benefits on eligible models.
• Compare energy ratings: Consider the energy-efficiency rating and expected usage because electricity consumption can affect the long-term cost of owning an AC.
• Choose suitable capacity: Select an AC capacity appropriate for the room size and cooling requirement to avoid paying for a model that may be larger than necessary.

• Check the invoice: Review the final invoice to understand the taxable value, GST, discounts, installation charges, and total amount payable before completing the purchase.

  
  

A lower GST rate can make the tax component more favourable than before, while comparing the complete purchase price, cooling capacity, energy rating, features, available offers, and financing options can help identify an AC that offers suitable overall value.

Bajaj Finance offers two financing options at over 1.5 lakh partner stores across 4,000 cities in India. Here is how they compare:

How to choose? Both options require you to be physically present at a partner store. The Insta EMI Card is ideal for shoppers who want to purchase across multiple categories over time. The Easy EMI Loan suits buyers looking to finance a higher-value purchase in a single transaction.

Also explore the latest offers. You may find a great deal on a model that matches your needs. 

The process is simple and typically takes 10 to 15 minutes once you are at the store.

1. Browse models on Bajaj Mall: Compare options on Bajaj Mall before visiting a store.
2. Find a partner store near you: Use the Bajaj Finance store locator to find a nearby partner outlet such as Croma, Vijay Sales, or other authorised retailers.
3. Check the AC in person: Check the key features, specifications, size, and performance to choose the product that best suits your needs and budget.
4. Choose a suitable EMI option: At checkout, ask the store executive about the Bajaj Finance Insta EMI Card or Easy EMI Loan. Confirm available tenure options and whether your chosen model comes with a zero-down-payment offer.

5. Complete payment and schedule installation: The in-store process is quick, and most partner stores offer installation as part of the purchase.

   
   

You can also check your loan eligibility online in advance by entering your mobile number and OTP, helping you plan your purchase better before visiting the store.

Bajaj Finance’s Smart Savings Calculator helps you unlock maximum savings every time you shop at partner stores. It brings together all available brand, dealer, and scheme offers—so you can see your total savings instantly and shop smarter with Easy EMIs.

1. Dealer offers - Grab exclusive in-store deals at over  1.5 lakh partner stores across India. Enjoy local discounts and special prices you will not find online.

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4. Scheme offers - Take advantage of time-sensitive offers on select EMI schemes. Get extra benefits after paying just 3 EMIs—visible during EMI selection at checkout.

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