The room air conditioners (RACs) prices are set to be cut by Rs 2,000- Rs 3,000 after the new Goods and Services (GST) tax reforms, according to a report.

The GST reduction on sub-2-tonne RACs is likely to bring down prices by approximately 6–8 per cent, translating into a saving of around Rs 2,000–3,000 per unit, offering a significant incentive for buyers, a report from ICRA said.

The tax on RACs has been reduced from 28 per cent to 18 per cent as part of GST 2.0 reforms. The move could also boost demand later in the financial year, the report added.

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Meanwhile, the upcoming Star label guidelines, effective from January 2026, aimed at enhancing energy efficiency standards, are expected to raise RAC prices by Rs 500–2,500 per unit.

“The new Star

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