New GST on Air Conditioners in India: Everything You Need to Know
- The GST on air conditioner 2026 is 18% under HSN 8415.
- The rate was reduced from 28% to 18% from 22 September 2025.
- Split, window and inverter ACs generally attract the same 18% GST.
- Energy efficiency, model or capacity does not by itself change the GST rate.
- GST-registered businesses may claim eligible ITC on ACs used for taxable business purposes, subject to GST rules.
Air conditioners (ACs) are no longer just luxury appliances—they’re becoming a necessity in India’s scorching summers. But when buying an AC, have you considered how much tax you’re paying? This blog breaks down the GST (Goods and Services Tax) applicable on air conditioners, explains the HSN code , and highlights how it impacts your final purchase price.
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Accuracy Check
- Air conditioners under HSN 8415: 28% → 18% from 22 September 2025. Correct. Goods & Services Tax Council
- Ceiling fans: 18% → 18%. No September 2025 rate change.
- Air coolers: 18% → 18%. No September 2025 rate change. Official GST Council material confirms both ceiling fans and air coolers were already at 18%. Goods & Services Tax Council
- Inverter ACs: They are still air-conditioning machines under HSN 8415, so 28% → 18%. The inverter technology does not create a separate GST rate. Goods & Services Tax Council
New GST Rate on Air Conditioners in India
From 22 September 2025, the GST rate on air conditioners was reduced from 28% to 18%. The revised rate applies to air-conditioning machines falling under HSN 8415.
| Product | GST Rate From 22 Sep 2025 | Rate Before 22 Sep 2025 |
|---|---|---|
| Air conditioners, including split, window and inverter ACs | 18% | 28% |
Product
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Alternatives with Lower Energy Use and GST Rates
If you’re looking for efficient cooling options, consider:
| Product Type | GST Rate From 22 Sep 2025 | Rate Before 22 Sep 2025 |
|---|---|---|
| Ceiling fans | 18% | 18% |
| Air coolers | 18% | 18% |
| Inverter-based ACs | 18% | 28% |
Product Type
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Product Type
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Product Type
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Although ACs are now at 18%, inverter-based models reduce energy bills and long-term operating cost.
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HSN Code for Air Conditioners
The HSN (Harmonized System of Nomenclature) code for air conditioners is 8415. This includes machines and appliances for treating air (whether or not they include a means for humidity control or temperature control).
| Product Type | HSN Code | Description |
|---|---|---|
| Air Conditioners | 8415 | Self-contained or split-system AC units |
Product Type
HSN Code
Description
Retailers and manufacturers must use this HSN code when invoicing under GST .
GST Calculation Example
Let’s assume you’re buying a split AC for ₹35,000 (base price).
- Base Price: ₹35,000
- GST @18%: ₹6,300
- Total Invoice Value: ₹35,000 + ₹6,300 = ₹41,300
So, your ₹35,000 AC costs ₹41,300 after GST is applied.
GST on Air Conditioners Reduced to 18%
Air conditioners previously attracted 28% GST. From 22 September 2025, the GST rate on air conditioners has been reduced to 18%.
- Previous GST rate: 28%
- Current GST rate: 18%
- Effective from: 22 September 2025
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Input Tax Credit (ITC) on ACs
For Businesses:
If you’re a business buying ACs for commercial use (e.g., offices, stores, hotels), you can claim ITC on the GST paid.
Conditions to claim ITC:
- You are a GST-registered business
- The AC is used for business operations
- You have a proper tax invoice
For Individuals:
Home users cannot claim ITC, as personal consumption doesn’t qualify under GST rules .
Impact on Consumers
The reduction in GST on air conditioners from 28% to 18% lowers the tax burden on consumers and reduces the overall purchase cost of ACs.
For example, on an AC with a base price of ₹35,000, GST is now ₹6,300 instead of ₹9,800, resulting in a tax saving of ₹3,500.
Cooling Alternatives and GST Rates
If you’re looking for other cooling options, consider:
| Product Type | GST Rate |
|---|---|
| Ceiling fans | 18% |
| Air coolers | 18% |
| Inverter-based ACs | 18% |
Product Type
GST Rate
Product Type
GST Rate
Product Type
GST Rate
Air conditioners, including inverter-based models, are now taxed at 18% GST.
Unique Features of BUSY Accounting Software For the Air Conditioner Industry
- Track AC models by brand, tonnage, star rating, and features with detailed inventory management.
- Manage each AC unit using serial numbers for warranty and service tracking.
- Create job cards for installations, servicing, and repairs with technician assignments.
- Configure seasonal discounts, brand schemes, and bundled offers with ease.
- Define customer-specific pricing and dealer-wise margins or incentives.
- Access actionable reports like model-wise sales.
Final Thoughts
Air conditioners now attract 18% GST, reduced from 28% from 22 September 2025. Understanding the GST on ACs can help homeowners and businesses calculate the correct purchase cost. GST-registered businesses may claim eligible Input Tax Credit on ACs used for taxable business purposes, subject to GST conditions.
