The GST reforms of 2025, known as GST 2.0, are among India’s biggest tax changes. Active since September 22, 2025, the new regime aims to simplify taxation and reduce costs on essentials and consumer durables. This boosts the ease of doing business.
The GST reforms lower taxes on electronic goods like mobile phones, refrigerators, air conditioners, TVs, and washing machines. This makes them more affordable and encourages production. This blog explores how GST 2.0 impacts consumer durables and what it means for buyers.
Understanding the GST Reforms 2025
The government has rolled out three main pillars of GST 2.0: rate rationalisation, structural reforms, and ease of living. These pillars aim to develop an efficient tax system that is easier and fairer.
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Structural Reforms: These changes address issues like the inverted duty structure, where businesses previously paid higher taxes on inputs than on finished goods. The reforms improve input tax credit utilisation and encourage domestic production of appliances and electronic goods.
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Rate Rationalisation: The GST rate structure has been simplified from four slabs to three main rates: 5%, 18%, and 40%. The earlier excise duty system has been replaced, reducing tax complexity.
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Ease of Living and Doing Business: Compliance has been simplified with features like pre-filled GST returns, faster refunds, and hassle-free registrations. These measures benefit both buyers and sellers of consumer durable goods by making the system easier to navigate.
What are the New GST Rates?
Many home appliances and electronics have become more reasonably priced after September 22, 2025, as a result of the GST cut. Previously subject to a 28% tax, goods are now subject to an 18% tax. This lowers the cost of appliances, including vacuum cleaners, washing machines, air conditioners, refrigerators, laptops, cell phones and LED TVs.
As reduced GST rates increase sales and profits, the electronics industry has welcomed this change. Customers can buy these products at more affordable prices due to the decreased tax burden.
Electronics will probably be easier to obtain under the new regime, which could lead to a rise in demand. This could encourage buyers to look for financing alternatives, including Consumer Durable Loans, to acquire electronics for their homes.
Impact of GST on Electronic Goods and Consumer Durables
GST 2.0 indirectly benefits buyers of consumer durable products using loans. With lower GST rates on electronics, the overall cost of products decreases, allowing customers to borrow a smaller amount and pay lower EMIs. For example, purchasing a refrigerator, mobile phone, or television under the new GST regime can result in lower monthly payments compared to the previous tax structure.
Additionally, simplified GST procedures make the loan application process quicker and easier. Applicants just need to submit basic documents, such as ID proof, address proof, and bank account details. Many lenders provide instant approval and disbursal.
How a Consumer Durable Loan Helps You Save Under GST 2.0
A Consumer Durable Loan makes it easier to purchase electronics and home appliances by spreading the cost into convenient EMIs. You can use it for different electronic items, such as laptops, TVs, air conditioners, or kitchen appliances, such as microwaves and blenders.
The Following Benefits of Consumer Durable Loans:
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Instant sanction with minimal paperwork
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Zero down payment required
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Flexible loan tenure to suit your convenience
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Transparent EMI structure and processing charges
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Option to foreclose or prepay your loan anytime without extra fees
If you’re a first-time borrower, ensure you meet the Consumer Durable Loan eligibility criteria before applying. Lenders assess your CIBIL score, income stability, and credit history to determine your loan limit. Missing EMI payments can lead to penalties, so always choose a repayment schedule you can comfortably manage.
Read Also: How to Repay Your Consumer Durable Loan Faster and Save Money
To Conclude
The 2025 GST updates have simplified tax slabs and reduced rates, lowering prices on electronics, kitchen, and home appliances. This makes products like LED TVs, refrigerators, and ACs more affordable, with reduced EMIs.
Financing has also become easier with faster loan approvals, better credit access, and flexible repayment options.
Poonawalla Fincorp offers consumer durable loans up to ₹5 lakh with attractive interest rates and a repayment period of up to 24 months. Apply now and enjoy easy EMIs on your favourite appliances!
FAQs
Do I need to pay GST separately when I purchase a refrigerator through a loan?
No, GST is included in the product’s price. Your EMI already covers the total cost, including applicable taxes.
Will interest rates on Consumer Durable Loans change after GST 2.0?
There won't be a direct change in the interest rates due to GST reforms; however, lower product prices can make overall financing more affordable.
Can I claim input tax credit on consumer durable goods bought for business use?
Yes, businesses purchasing electronic items for use in business activities can claim input tax credit under the new GST structure.
Do GST reforms affect the processing fees of durable loans?
Lenders set loan processing fees that are unaffected by GST changes. However, lenders may decide to modify fees or provide temporary promotional discounts in response to reduced product pricing.
Are luxury electronics still taxed at higher GST rates?
Yes, premium or luxury items may continue under the higher slab, while regular consumer electronics move to lower GST rates.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply