Electrical and electronics items taxed at 5% GST
The GST Council has introduced a significant reform by reducing the tax rate on nearly all renewable energy equipment and select essential electronic items to a uniform 5%. This step, effective from September 22, 2025, is aimed at promoting sustainable energy solutions and making eco-friendly technology more affordable for consumers across India.
Revised GST Rates for Renewable Energy and Essential Electronics
| Item | Old GST Rate | New GST Rate (Effective Sept 22, 2025) |
| Electric vehicles | 5% | 5% |
| Chargers for electric vehicles | 5% | 5% |
| Solar-powered devices (e.g., photovoltaic cells, solar lanterns, solar water heaters, solar cookers) | 12% | 5% |
| Wind turbines and wind-powered generators | 12% | 5% |
| Biogas plants | 12% | 5% |
| Waste-to-energy plants and related devices | 12% | 5% |
| Ocean/tidal wave energy devices | 12% | 5% |
| Lighters | 18% | 5% |
| Utensils, tableware, and kitchenware | 18% | 5% |
| Household electric fans | 18% | 5% |
| LED lamps | 12% | 5% |
This rationalization not only supports India’s clean energy initiatives but also helps reduce the cost of everyday household and green technology items, making them more accessible to the general public.
List of Electrical and Electronics Items Replaced from 12% GST Rate to 5% GST Rate
The GST Council has revised the tax rate for several electrical and electronic items, reducing them from 12% to a more affordable 5%. This change, effective from September 22, 2025, supports clean energy adoption and enhances affordability of essential green technology products.
Items Moved from 12% to 5% GST Rate
| Item | HSN Code | Previous GST Rate | New GST Rate |
| Solar water heater and system | 8419 12 | 12% | 5% |
| Bio-gas plant | 84, 85, 94 | 12% | 5% |
| Solar-powered devices | 84, 85, 94 | 12% | 5% |
| Solar power generators | 84, 85, 94 | 12% | 5% |
| Windmills and wind-operated electricity generators (WOEG) | 84, 85, 94 | 12% | 5% |
| Waste-to-energy plants and devices | 84, 85, 94 | 12% | 5% |
| Solar lantern or solar lamp | 84, 85, 94 | 12% | 5% |
| Ocean wave/tidal energy devices or plants | 84, 85, 94 | 12% | 5% |
| Photovoltaic cells | 84, 85, 94 | 12% | 5% |
| Instruments for medical, surgical, dental, or veterinary use | 9018 | 12% | 5% |
Under the new GST tax regime, both new and used mobile phones are subject to a 12% GST tax rate. For more information on the GST rate for mobile phones and accessories, refer to our detailed article on GST on mobile phones.
Electrical and electronics items taxed at 18% GST
The Goods and Services Tax (GST) framework in India has undergone a major simplification, particularly in the electronics segment. As part of the latest reforms, a standard 18% GST rate is now applicable to a wide range of electronic items and consumer durables. This move replaces the earlier higher 28% slab for many products, making these items more affordable and supporting wider consumer access.
Updated GST Rates for Electronics and Electrical Items
Below is a comparison of the previous and revised GST rates, effective from September 22, 2025:
| Item | Old GST Rate | New GST Rate |
| Refrigerators | 28% | 18% |
| Television sets (all screen sizes) | 18% (up to 32") / 28% (above 32") | 18% |
| Air-conditioners | 28% | 18% |
| Washing machines | 28% | 18% |
| Dish-washing machines | 28% | 18% |
| Mobile phones | 18% | 18% |
| Laptops and computers | 18% | 18% |
| Monitors and projectors | 28% | 18% |
| Printers | 18% | 18% |
| Cameras | 28% | 18% |
| Vacuum cleaners | 28% | 18% |
| Water purifiers | 18% | 18% |
| Electric smoothing irons, hair dryers | 28% | 18% |
| Electrical capacitors | 18% | 18% |
| Electrical resistors | 18% | 18% |
| Microphones, loudspeakers, headphones | 18% | 18% |
| Electrical transformers, static converters | 18% | 18% |
| Closed-circuit television (CCTV) systems | 18% | 18% |
| Electric accumulators and separators | 28% | 18% |
| Winding wires, coaxial cables, optical fiber | 18% | 18% |
| Electronic integrated circuits | 18% | 18% |
| Electrical ignition equipment | 28% | 18% |
This uniform rate structure simplifies compliance for businesses and ensures better price transparency for consumers. It also encourages the purchase of modern appliances and tech products by reducing their overall cost burden.
List of Electrical and Electronics Items Replaced from 28% GST Rate to 18% GST Rate
The following table outlines the notable reduction in GST rates for various household electrical and electronic appliances. These items were earlier taxed at the highest 28% slab but have now been brought down to 18%, effective from September 22, 2025, significantly lowering the tax burden on consumers.
GST Rate Revision for Household Electrical and Electronic Items
| Item | HSN Code | Old GST Rate | New GST Rate (Effective Sept 22, 2025) |
| Air-conditioners | 8415 | 28% | 18% |
| Electric accumulators, including separators | 8507 | 28% | 18% |
| Monitors and projectors | 8528 | 28% | 18% |
| Electrical ignition systems | 8511 | 28% | 18% |
| Dish-washing machines | 8422 | 28% | 18% |
| Television sets larger than 32 inches | 8528 | 28% | 18% |
| Household washing machines (under 10 kg) | 8450 | 28% | 18% |
| Vacuum cleaners | 8508 | 28% | 18% |
| Video recording or reproducing devices | 8521 | 28% | 18% |
| Home theater systems and AV equipment | 8528 / 8518 | 28% | 18% |
| Freezers and refrigerators | 8418 | 28% | 18% |
| Shavers, hair clippers, and similar appliances | 8510 | 28% | 18% |
| Electric smoothing irons | 8516 | 28% | 18% |
| Food grinders and mixers | 8509 | 28% | 18% |
| Instantaneous gas water heaters | 8419 | 28% | 18% |
| Electric hot plates | 8516 | 28% | 18% |
| Microwave ovens | 8516 | 28% | 18% |
| Electric coffee or tea makers | 8516 | 28% | 18% |
| Electric cookers and boiling plates | 8516 | 28% | 18% |
| Television sets up to 32 inches | 8528 | 18% | 18% |
| Projectors | 8528 | 28% | 18% |
| Electrical starting equipment (e.g., ignition coils, starters, alternators) | 8511 | 28% | 18% |
| Lighting/signalling equipment for vehicles | 8512 | 28% | 18% |
This tax revision is expected to make essential appliances more affordable for households and reduce the overall cost of living, while also simplifying compliance for manufacturers and retailers.
Input Tax Credit (ITC) on Electronics for Businesses
GST-registered businesses that purchase electronic items for business purposes can generally claim Input Tax Credit (ITC) on the GST paid. ITC enables businesses to offset the GST paid on purchases against their output GST liability, thereby reducing the overall tax payable.
ITC eligibility conditions
To claim ITC on electronic items, the following conditions must be met:
- The electronic items must be used solely for business purposes and not for personal consumption.
- The purchase must be made from a GST-registered supplier and supported by a valid GST invoice containing the correct HSN code.
- The supplier must have filed their GSTR-1, and the corresponding ITC must be reflected in the recipient's GSTR-2B.
- ITC cannot be claimed on electronic items purchased for the personal use of the proprietor, partners, directors or employees.
Common electronic items eligible for ITC (business use)
| Item | ITC available? | Condition |
|---|
| Laptop or desktop purchased for office use | Yes | Must be used for business purposes and supported by a valid GST invoice |
| Mobile phone provided to sales or service teams | Yes | Business use only; valid invoice required |
| CCTV system installed for factory or office security | Yes | Must be installed at business premises |
| Air conditioner installed in an office | Yes | Permitted where used for office or commercial purposes |
| Printer or scanner used in the office | Yes | Business use and valid GST invoice required |
| Television purchased for the proprietor's personal use | No | Personal use is not eligible under Section 17(5) of the CGST Act |
| Mobile phone used primarily for personal purposes | No | Personal consumption is not eligible for ITC |
| Household appliances purchased for personal use | No | Only business-related purchases qualify for ITC |
Under the GST 2.0 e-invoicing framework, ITC verification is largely automated through the GST system. Any mismatch between the ITC claimed in GSTR-3B and the details reported by the supplier in GSTR-1 may result in automated notices or scrutiny. Businesses should therefore ensure that suppliers have filed their GST returns accurately and that the purchase details are correctly reflected in GSTR-2B before claiming ITC.
Impact of GST 2.0 on the Electronics Industry
The GST 2.0 reforms introduced in September 2025 have had a significant impact on India's electronics sector, influencing consumer pricing, business compliance and purchasing behaviour.
- Consumer savings: Several products that moved from the 28% GST slab to the 18% slab — including air conditioners, refrigerators, washing machines and large-screen televisions — became more affordable. In many cases, consumers benefited from retail price reductions of approximately 8–10%, resulting in savings of around Rs. 3,000 to Rs. 8,000 on mid-range appliances.
- Compliance simplification: The reduction in the number of GST slabs has simplified tax administration for businesses. Companies now need to manage fewer tax-rate configurations within their accounting, ERP and billing systems. In addition, e-invoicing and automated reconciliation through GSTR-1A and GSTR-3B have reduced manual compliance efforts.
- Sustainability incentive: The expansion of the 5% GST slab to cover products such as LED lamps, solar equipment, electric fans and biogas-related devices has encouraged the adoption of energy-efficient and environmentally sustainable technologies by narrowing the price gap with conventional alternatives.
- Seasonal demand boost: The GST rate reductions came into effect ahead of the 2025 festive shopping season, contributing to increased demand across the consumer electronics and white goods segments during major retail sales periods.
- Price uniformity: The simplified GST structure has strengthened pricing consistency across the country. As a result, the GST component on electronic products remains the same irrespective of the state in which the purchase is made, supporting more uniform retail pricing nationwide.
- Consumer protection measures: The Central Board of Indirect Taxes and Customs (CBIC) has instructed businesses to pass on the benefit of GST rate reductions to consumers through lower prices. Consumers who believe these benefits have not been passed on appropriately can raise complaints through the National Consumer Helpline (NCH).
Common Mistakes to Avoid in GST on Electronics
- Using outdated GST rates: Any invoice, price list or rate chart showing 28% GST on air conditioners, televisions above 32 inches, or washing machines is incorrect for supplies made on or after 22 September 2025. Businesses should ensure that their billing systems reflect the revised GST rates under GST 2.0.
- Applying a 12% GST rate to mobile phones: Mobile phones continue to attract GST at 18% under GST 2.0. The 12% rate does not apply to mobile phones and using an incorrect rate can result in compliance issues and tax mismatches.
- Using an incorrect HSN code: Applying the wrong HSN code can lead to the application of an incorrect GST rate and may trigger notices or penalties. Businesses should always verify the applicable HSN classification on the CBIC or GST portal before issuing invoices.
- Claiming ITC on personal-use electronic items: Input Tax Credit cannot be claimed on electronic products purchased for personal consumption, even if the purchase is made through a business account. Such claims are restricted under Section 17(5) of the CGST Act.
- Assuming all former 12% slab items moved to 5% GST: While the majority of goods previously taxed at 12% were shifted to the 5% slab under GST 2.0, certain products continue to attract GST at 12%. Businesses should refer to the relevant CBIC notifications to confirm the applicable rate for specific products before invoicing or filing returns.
New GST Rates on Electronics Benefit Businesses
The new GST rates on electronic items, effective September 22, 2025, bring significant benefits to business owners. Unlike previous tax systems, the simplified structure and lower rates on consumer durables are not a burden, but a major opportunity.
Instead of needing to increase prices, small business owners can now make their products more competitive. By passing on the tax reduction to consumers, businesses can offer televisions, air conditioners, and refrigerators at lower prices, which is expected to boost sales and consumer demand, especially during the festive season. This can directly lead to higher sales volumes and increased revenue.
Furthermore, the reforms aim to streamline the GST process. While it remains crucial for business owners to maintain detailed records for Input Tax Credit (ITC), the simplified rate structure of just 5% and 18% reduces complexity and the risk of classification disputes. This not only eases the compliance burden but also helps improve cash flow and overall financial planning, making it easier for small businesses to thrive in the new, more transparent tax environment.
Business financing
Small business owners may require financing solutions such as business loans to finance their operations, including the purchase of electronic items. This is especially true in cases where there is a need to meet sudden demand or when businesses need to upgrade their equipment or diversify their product range. If you are planning to register your business for GST, understanding the GST registration process is crucial to ensure a smooth and compliant start.
Bajaj Finance offers high-value business loans of up to 8000000 that can help business owners finance their operations and increase their competitive advantage by enabling them to purchase the latest electronic items or increase their inventory. Here are some of the advantages of opting for a Bajaj Finance Business Loan:
- Flexi Loan feature: Lower your EMIs, withdraw funds as necessary, and conveniently prepay with our Flexi Loan options.
- No collateral: Obtain a loan without having to pledge any assets as collateral.
- Flexible repayment tenure: Enjoy enhanced flexibility in repaying your loan, with tenure options ranging from 1 year to 8 years.
- High loan amount: Secure substantial funds, up to 8000000, to fulfill your business needs.
GST has important implications for businesses that operate in the electronic items sector. Business owners need to be aware of the various GST rates that apply to electronic items, as well as exemptions and deductions that they may be eligible for. By understanding the implications of GST on electronic items, businesses can make informed decisions that impact their bottom line. Additionally, business financing solutions such as business loans can enable businesses to finance their operations and increase their competitiveness in a rapidly changing economic landscape.
