Mumbai: Blue Star Managing Director B Thiagarajan called it a “great move” and urged the government to implement it quickly. He explained that customers are currently holding back purchases, waiting for prices to drop. Dealers too are hesitant to stock ACs until clarity comes.
According to Thiagarajan, customers can expect around 10 percent savings because GST is charged on the final selling price.
Industry Sees Growth Opportunity
Panasonic Life Solutions India Chairman Manish Sharma said the reduction will bring 6–7% direct price benefit, as GST is applied on the base price. This could encourage buyers to go for energy-efficient and premium models, giving a boost to “premiumisation.”
Similarly, Godrej Appliances Business Head Kamal Nandi highlighted that AC penetration in India is still very low, at just 9–10 percent, compared to global standards. Lower GST will make ACs more affordable and improve living standards for many families.
TVs Also in Focus
The proposed GST cut is not just limited to ACs. It is also expected to benefit TVs above 32 inches, where the tax rate may fall from 28% to 18%.
Avneet Singh Marwah, CEO of SPPL, said this would fuel demand in the TV market too. He predicted that brands could see 20% year-on-year growth. However, he urged the government to further reduce GST on 32-inch smart TVs to 5 percent, as a large share of this segment is dominated by the unorganised market.
Industry Under Pressure
The timing of the GST cut is crucial, as appliance makers have been facing challenges. Due to unseasonal rains and early monsoon, listed companies like Voltas, Blue Star, and Havells reported revenue declines of 13–34 percent in their air-conditioning business during the June quarter.
Industry players hope that lower prices and festive demand will help recover sales and margins in the coming months.
