Air conditioners are common in homes, offices, and shops across India. But many people are not aware of the tax they pay while buying one. In this article, I will explain how GST works on air conditioners in India. I’ll also show how Taxlegit, a trusted legal company, helps with related services like Income Tax Filing and proprietorship registration.
What is the GST Rate on Air Conditioners?
Air conditioners fall under the 28% GST slab in India. This is the highest GST rate category. It includes luxury goods and non-essential items. So, if you buy an AC worth ₹30,000, you will pay ₹8,400 as GST.
This high tax impacts the total cost of the product. Many customers don’t realize how much GST adds to the final price. That’s why it’s important to know the GST rate before making a purchase.
Why Is GST on Air Conditioners So High?
The government has placed air conditioners in the 28% slab because they are seen as non-essential. These products use a lot of power and are not considered basic needs. Items like food and daily-use goods have lower GST, usually 5% or 12%.
ACs are also categorized under luxury electronic appliances. Since they are mostly used in urban households or commercial setups, the GST is kept high to maintain fair revenue flow for the government.
Impact on Businesses Using Air Conditioners
If you run a shop, office, or factory where air conditioners are essential, the GST can impact your business cost. But the good news is that you may claim Input Tax Credit (ITC).
If you have GST registration and use the AC for business purposes, you can claim the GST amount as credit. This helps lower your tax burden. Taxlegit can assist in checking if you qualify for ITC. We also help with GST return filing and Income Tax Filing to make your compliance smooth.
GST and Proprietorship Businesses
If you run a sole proprietorship and plan to install an AC for business use, you need to ensure proper billing. Only then can you claim ITC on the GST paid.
For this, proprietorship registration is the first step. At Taxlegit, I help clients complete their proprietorship registration legally and efficiently. Once registered, you can apply for GST and start claiming benefits.
How Taxlegit Can Help You
At Taxlegit, I work with individuals and businesses who need legal help with tax and registration. If you're unsure about GST on air conditioners or how to claim credit, I can guide you.
Whether you need help with:
Income Tax Filing
GST Registration or Return Filing
Proprietorship Registration
I ensure your legal work is done right and on time. My goal is to make tax and legal matters simple for everyone.
Conclusion
GST on air conditioners in India is set at 28%, which raises the final cost. But if you use the AC for business, you may claim the GST through ITC. If you need help understanding your eligibility or need support with Income Tax Filing or proprietorship registration, reach out to Taxlegit. I’m here to assist you with legal clarity and trusted support.
