By Finance Minister Nirmala
Copyright indiatimes
ReutersAir conditioner makers start pre-booking with reduced GST rates
Several room air-conditioner makers and dealers have started pre-booking of units with reduced prices, anticipating a pent-up demand as lower GST rates take effect next week, and are quite buoyed by buyers’ responses. Makers of room-air conditioners (RAC) said they are transferring the entire 10 per cent reduction in GST to consumers, which will result into an average saving of up to Rs 4,000 per unit for customers, depending on models. Earlier this month, the GST Council in its meeting chaired by Finance Minister Nirmala Sitharaman decided to replace the existing four slabs of the Goods and Services Tax (GST) with a two-rate tax structure of 5 per cent and 18 per cent, putting a majority of common-use products under the lowest slab. Air-conditioner, which is currently taxed at 28 per cent, will come into 18 per cent slab once the new rates come into effect on September 22, the first day of Navratri festival. Air-conditioner manufacturers like Blue Star and Haier have already started pre-booking of units.Live Events AC makers, facing a decline in sales during the June quarter due to unseasonal rains in the peak summer season, is now extending schemes such as easy financing, free installation, extended warranty with gas charging, and zero-cost EMI options. “The response is good. Our dealers are pre-booking and they will bill on September 22, when the new GST rates will be applicable,” Blue Star Managing Director B Thiagarajan told PTI. Also, the installation team has to be ready because there will be a huge pile of orders. The company has already done MRP labelling of the products to be sold after the date, along with portals for the generation of the E-Way bill system for the transportation of goods after September 22. Haier has started pre-booking of RAC with one rupee and its offer also includes up to 10 per cent cashback on select payment modes, free installation on inverter split ACs, a 5-year comprehensive warranty with gas charging, and easy EMI options. Its booking window is open from September 10-21, 2025, while purchases can be made between September 22-30, 2025, the company said. Haier has reduced the prices from Rs 3,905 on its 1.6-ton 5-star AC to Rs 2,577 on 1.0-ton 3-star AC. “The reduction in GST rates is a timely and visionary step that will significantly boost affordability and consumer sentiment across India. This reform not only streamlines compliance but also creates a conducive environment for sustained industry growth and long-term investment,” said Haier Appliances India President N S Satish. Godrej Enterprises Group Business Head & EVP at Appliances Business Kamal Nandi said some of the dealers are doing pre-booking but it’s not at the company level. However, the company is helping with the new MRP stickers, which will be applicable after September 22 on RAC units. This year unseasonal rains and early arrival of monsoon have impacted up to 34 per cent of the segment revenue of several companies during the June quarter.Add as a Reliable and Trusted News Source Add Now!
The impact was also accentuated by an exceptionally high base in the corresponding quarter of the previous year, when manufacturers and dealers had record sales due to a harsh and prolonged summer.(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onblue starGST reductionlower GST ratesGST CouncilNavratri festivalblue starHaier Appliances
(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
(You can now subscribe to our Economic Times WhatsApp channel)Read More News onblue starGST reductionlower GST ratesGST CouncilNavratri festivalblue starHaier Appliances(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
