Key takeaways
- Room AC sales hit a record 12.5 million in FY2025, and GST on ACs fell from 28% to 18% in September 2025.
- AC businesses juggle installations, servicing, gas refills, breakdowns and AMCs, mostly at customers’ homes.
- Summer demand spikes, so one request queue, priority rules and a technician app make the difference.
- AMCs smooth out the seasons, but only if visits are scheduled and renewals tracked.
The AC service market in India
ICRA reported that India sold a record 12.5 million room ACs in FY2025, after 20–25% growth. ICRA expected a dip in FY2026 after an unusually wet summer, but the installed base keeps growing. Under GST 2.0, effective 22 September 2025, GST on air conditioners fell from 28% to 18%, making ACs cheaper to buy. Industry estimates put AC ownership at only around 10% of Indian households, so the base of units needing installation and service will keep growing for years.
The jobs an AC service business does
| Job type | Typical details | What software must capture |
|---|---|---|
| Installation | Split/window, pipe length, stand, core cutting | Site address, materials used, extra pipe charges |
| Routine service | Wet/dry service, filter and coil cleaning | Units serviced, observations, before/after notes |
| Gas refill | Leak test, gas top-up or full charge | Gas type, quantity, leak found or not |
| Breakdown repair | Not cooling, PCB, compressor, capacitor, fan motor | Diagnosis, parts used, warranty |
| Uninstall / reinstall | Shifting to a new address | Two addresses, materials |
| AMC visits | Scheduled preventive maintenance | Contract, visit number, checklist, parts |
Handling the summer peak
Most AC work lands between March and June, when requests arrive by phone, WhatsApp and online at once. Software helps you stay on top of it:
- One queue: every request, whatever the channel, becomes a booking or job card.
- Priorities: breakdowns (not cooling) before routine servicing; AMC customers first if your contract promises it.
- Assignment by area and skill: gas and PCB work to senior technicians, cleaning to juniors.
- Technician app: address, issue and history on the phone, with updates sent from the site.
- Customer updates: confirm the booking and tell customers when the job is done.
AC AMCs: smoothing out the seasons
An annual maintenance contract turns one-off customers into recurring revenue and gives you work in the off-season. Typical AC AMCs include two to four preventive services a year plus breakdown support, priced per unit. Software should record the covered units, generate the visit schedule, assign technicians, log each visit and track instalments and renewals. Read more in our AMC management software guide.
Features to look for in AC service software
- Online booking page and lead capture for installation and service requests.
- Job cards with site address, units, issues, observations, action taken and photos.
- Technician assignment and a mobile app.
- AMC contracts with visit planning, payments and renewals.
- Inventory for gas, capacitors, PCBs, pipes and stands, deducted when used.
- GST quotations and invoices, with UPI and split payments on site.
- WhatsApp updates for bookings, visits and invoices.
How Rasko does it
Rasko combines a public booking page, leads, job cards, AMC contracts with a visit planner and payments ledger, inventory, GST quotations and invoices and WhatsApp updates. Technicians see their job cards and AMC visits in the mobile app and update them from the customer’s home.
GST for AC service businesses
- Air conditioners: 18% under GST 2.0 (previously 28%).
- Repair, maintenance and installation services: generally 18% under SAC 9987.
- Spare parts and consumables: billed under their own HSN codes and rates.
- Registration: service providers must register once turnover exceeds ₹20 lakh (₹10 lakh in special category states).
Check the exact HSN/SAC and rate for each item with your accountant. Good software lets you set them per item so every invoice line is taxed correctly. See our GST billing software guide for more.