GST on refrigerators in India is 18%. This rate applies uniformly to single-door, double-door, side-by-side, and multi-door refrigerators, whether you buy online or in-store. The rate dropped from 28% to 18% after the 56th GST Council meeting. The new rate took effect on 22 September 2025, when refrigerators moved out of the old “luxury goods” bracket.
Key Takeaways
- GST on refrigerators is 18%, down from 28% before 22 September 2025, a rate cut of 10 percentage points.
- Refrigerators fall under HSN code 8418, with specific sub-codes depending on type and capacity.
- No compensation cess applies to refrigerators under the current structure.
- Businesses can claim Input Tax Credit on refrigerators purchased for genuine business use, like hotels, restaurants, and offices.
- The rate that applies depends on the date of the invoice, not when the appliance was manufactured.
What is the GST Rate on Refrigerators?
The table below shows the current GST rate on refrigerators after the September 2025 reform:
| Refrigerator Type | GST Rate |
|---|---|
| Single-door refrigerators | 18% |
| Double-door and multi-door refrigerators | 18% |
| Side-by-side and French-door refrigerators | 18% |
| Commercial and industrial refrigeration units | 18% |
Note: No compensation cess applies to refrigerators, so 18% is the total tax paid at the point of sale. For intra-state purchases, this splits into 9% CGST and 9% SGST; for inter-state purchases, it’s 18% IGST.
What is the Refrigerator HSN Code?
Refrigerators fall under HSN code 8418 within the Harmonized System of Nomenclature (HSN). The HSN classification remained unchanged after the GST rate change.
| HSN Code | Covers |
|---|---|
| 8418 10 | Combined refrigerator-freezers, fitted with separate external doors |
| 8418 21 | Compression-type household refrigerators |
| 8418 29 | Other household refrigerators |
| 8418 50 | Other furniture for storage/display, incorporating refrigerating equipment |
| 8418 69 | Other refrigerating or freezing equipment, including commercial units |
Every invoice for a refrigerator purchase should show the correct HSN sub-code and GST rate. Businesses claiming ITC especially need accurate classification for smooth compliance.
GST Calculation on Refrigerators with an Example
GST is calculated on the taxable value, the base price of the refrigerator before tax.
For example, a refrigerator priced at ₹30,000 (base price), under the current 18% GST slab:
- GST amount: ₹30,000 × 18% = ₹5,400
- Total price after GST: ₹30,000 + ₹5,400 = ₹35,400
Under the old 28% rate, the same ₹30,000 refrigerator would have cost ₹38,400 after tax. The September 2025 rate cut reduced the cost by ₹3,000.
Impact Across Price Segments at the Current 18% Rate
The 18% GST rate affects refrigerators differently based on their base price. The table below shows the GST amount and final price across three price segments:
| Price Segment | Base Price | GST Amount (18%) | Final Price |
|---|---|---|---|
| Budget refrigerators | ₹15,000–25,000 | ₹2,700–4,500 | ₹17,700–29,500 |
| Mid-range refrigerators | ₹25,000–50,000 | ₹4,500–9,000 | ₹29,500–59,000 |
| Premium refrigerators | Above ₹50,000 | ₹9,000+ | ₹59,000+ |
Can Businesses Claim Input Tax Credit on Refrigerators?
GST-registered businesses can claim Input Tax Credit (ITC) on refrigerators used for genuine business purposes. The claim must meet the standard GST conditions:
- Eligible: Hotels, restaurants, offices, and commercial kitchens can claim full ITC on refrigerators used for business operations. The invoice must correctly show the GST amount and HSN code.
- Not eligible: Refrigerators purchased for personal or household use don’t qualify for ITC. This applies regardless of who buys the refrigerator.
- Documentation: Proper invoices with GSTIN details and the correct HSN code are essential for smooth ITC claims during GST filing.
Tips for Smart Refrigerator Purchases
A few simple checks can help you avoid overpaying and ensure the GST details are correct. These steps are especially useful when buying a refrigerator for business use:
- Verify the GST rate: Check that the invoice shows 18% GST, not the old 28% rate. If the price still reflects 28% GST, ask the retailer to clarify.
- Check the HSN code: The invoice should show HSN heading 8418 with the correct sub-code for your refrigerator type. This is important for accurate billing and ITC claims.
- Compare festive-season prices: Some retailers may have adjusted their prices after the GST rate cut. Compare the final price and GST amount before buying.
- Keep the invoice: If you buy a refrigerator for a hotel, office, or commercial kitchen, keep the GST-compliant invoice. It can support your ITC claim.
Following these checks can help you make a better purchase decision and avoid GST-related issues.
