The saving on a ₹40,000 air-conditioner
At the old 28% rate the GST on a ₹40,000 (pre-tax) AC was ₹11,200, so the bill was ₹51,200. At 18% the GST is ₹7,200 and the bill is ₹47,200 — ₹4,000 less. The comparison table in the calculator shows both the old 12%/28% and the new rates side by side.
Saving at different prices (before GST)
| Price before GST | With 28% GST | With 18% GST | You save |
|---|---|---|---|
| ₹30,000 | ₹38,400 | ₹35,400 | ₹3,000 |
| ₹40,000 | ₹51,200 | ₹47,200 | ₹4,000 |
| ₹50,000 | ₹64,000 | ₹59,000 | ₹5,000 |
| ₹70,000 | ₹89,600 | ₹82,600 | ₹7,000 |
In percentage terms the final price falls by about 7.8% (10 ÷ 128). Whether you see all of it depends on the seller passing the cut on; the Government asked companies to revise MRPs, and you can check by looking at the GST line on your invoice.
What moved where in GST 2.0
| Item | Before 22 Sep 2025 | Now |
|---|---|---|
| Air-conditioners, TVs above 32", dishwashers | 28% | 18% |
| Cement | 28% | 18% |
| Small cars (petrol ≤1,200 cc / diesel ≤1,500 cc, under 4 m) | 28% + cess | 18% |
| Motorcycles up to 350 cc | 28% | 18% |
| Larger cars and SUVs, bikes above 350 cc | 28% + cess | 40% |
| Soap, shampoo, toothpaste, butter, ghee | 12%–18% | 5% |
| Individual life and health insurance | 18% | Exempt |
Does it matter when I bought it?
Yes — GST is charged at the rate in force when the supply happens (the earlier of invoice and payment, broadly). Anything invoiced and paid before 22 September 2025 kept the old rate. That is why the calculator still lets you pick 12% or 28%: it is handy for checking older bills or for warranty and insurance claims.
For larger cars the change is mixed: the 40% rate replaced 28% plus compensation cess of up to 22%, so many SUVs also became cheaper overall.
How to check you got the lower rate
Look at the tax line on your invoice: it should read “CGST 9% + SGST 9%” or “IGST 18%”, not 14% + 14% or 28%. For a car, the invoice should no longer show compensation cess. If an invoice dated on or after 22 September 2025 still shows 28%, ask the seller for a corrected invoice; you can also raise a complaint on the National Consumer Helpline (1915) or the INGRAM portal, which the Government set up to track the pass-through of the cut.
Remember that the saving applies to the GST, so it is about 7.8% of the final price for items that moved from 28% to 18%, and about 6.25% to 8.3% for everyday items that moved from 12% or 18% down to 5%. Retailers may also have adjusted MRPs or discounts at the same time, so compare the pre-tax price as well.
Key GST figures (checked 5 November 2026)
| Item | Figure |
|---|---|
| Main slabs | 5% (merit) and 18% (standard) |
| Special rate | 40% (luxury and sin goods) |
| Gold, silver, jewellery | 3% |
| Rough diamonds | 0.25% |
| In force since | 22 September 2025 (56th GST Council, 3 Sep 2025) |
| Latest review | 57th GST Council, 8 October 2026 — no rate changes |
FAQ
How much do I save on a ₹40,000 AC after the GST cut?
₹4,000. GST falls from ₹11,200 (28%) to ₹7,200 (18%), so the bill drops from ₹51,200 to ₹47,200.
When did the 28% GST rate end?
On 22 September 2025, when the GST 2.0 rates took effect.
Which items still pay more than 18%?
Larger cars and SUVs, motorcycles above 350 cc, aerated and caffeinated drinks and tobacco products pay the special 40% rate.
Sources (checked 5 November 2026): CBIC notification No. 9/2025-Central Tax (Rate) and related rate notifications, effective 22 September 2025; PIB release on the 56th GST Council meeting (3 September 2025); press briefing after the 57th GST Council meeting, New Delhi, 8 October 2026 (no rate changes, reported by Business Today and Upstox); CGST Act 2017 s.9 and IGST Act 2017 s.5.