NEW DELHI: The proposed Goods and Services Tax (GST) restructure aims to bring respite to the growing aspirational middle class, confirmed sources from the Ministry of Finance. Thus, the GST on goods like air conditioners, TV, fridge, cars will be under the tax slab of 12% , which was previously under 28% slab.
"None of the aspirational goods will come under 28%. They will come under 5% and 18%. Most of the items, currently under the 12% slab, will be put under 5%," confirmed the Ministry of Finance.
The Centre further assured that most of the daily use items of the middle class will be coming under the 5% slab and 99% of the items under 12% will also be in the 5% bracket.
With rising disposable incomes and middle-class expansion, there has been a considerable surge in the white goods.
Average monthly spending on consumer durables soared by 72% in FY25 fuelled by a growing wave of home ownership and the demand for furnishing new homes with appliances, according to the CMS Consumption Report 2025.
As per the research of India Brand Equity foundation, the refrigerator market in India is valued at Rs. 46,732 crore (US$ 5.4 billion) in 2024 and is expected to reach Rs. 1,04,713 crore (US$ 12.1 billion) by 2033 at a CAGR of 9.37%.
India's air conditioner (AC) market is witnessing a significant sales surge, driven by record heat waves and forecasts of hotter weather. Blue Star Ltd. anticipates up to 30% growth in summer sales, particularly in smaller cities.
India's electronics exports have grown at a compound annual growth rate (CAGR) of about 26% from FY16 to FY25.