GST on Refrigerator: Complete Guide for Indian Consumers

The GST on refrigerators in India is currently set at 28%, making it one of the highest taxed home appliances. Understanding the refrigerator HSN code and GST implications helps consumers make informed purchasing decisions. 

Did you realize?

 When GST was not applied, taxes on refrigerators added up to between 31 and 32%. Thanks to the new GST, the overall tax paid by consumers has decreased slightly.

What is GST on Refrigerators?

The Goods and Services Tax (GST) on refrigerators stands at 28% across India. This rate applies to all types of refrigerators, including single-door, double-door, and multi-door variants. The GST on refrigerators remains uniform whether you purchase from online platforms or physical stores.

The government classifies refrigerators under the luxury goods category. Therefore, they attract the highest GST slab of 28%. This rate includes both Central GST (CGST) and State GST (SGST) components.

What is the Refrigerator HSN Code?

The GST system categorizes the refrigerator as HSN code 84182100. HSN, which is short for Harmonized System of Nomenclature, makes taxing items more uniform. Tax filing requires that every refrigerator manufacturer and seller use this allocated code.

Boundary 5214 applies to household refrigerators that have separate doors on the outside to get to their freezers. Thanks to the code, taxes are calculated evenly and everyone maintains compliance.

How is the HSN Code determined for a Refrigerator?

Breakdown of GST on Refrigerators

The 28% GST on refrigerator gets divided as follows:

• CGST: 14%
• SGST: 14%
• Total: 28%

Whenever the transaction takes place between two states, IGST of 28% is applied in place of both CGST and SGST. It doesn’t matter if you buy toilet paper or a TV, the tax charge is always the same.

Impact of GST on Different Price Segments

• Budget refrigerators (₹15,000-25,000) see a tax impact of ₹4,200-7,000 approximately. 
• Mid-range models (₹25,000-50,000) attract GST of ₹7,000-14,000. 
• Premium refrigerators above ₹50,000 can have GST exceeding ₹14,000.

How is GST Calculated on Refrigerators? 

Calculating GST on refrigerator purchases is straightforward. First, identify the base price excluding taxes. Then, multiply the base price by 28% to get the GST amount.

For example, if a refrigerator costs ₹30,000 (base price), the GST would be ₹8,400. The total price becomes ₹38,400 including taxes.

Invoice on GST Components

When you check a refrigerator purchase invoice, you’ll see the HSN code 84182100 there. To help with transparency, the invoice separates CGST from SGST. Confirm these details if you want to link input tax credit to your claim.

Here is a sample invoice for your reference:

GST on Different Types of Refrigerator

Understanding the GST implications across various refrigerator categories helps consumers make informed purchasing decisions and budget accordingly for their home appliance needs.

1. Single Door Refrigerators

Single door refrigerators attract the standard 28% GST on refrigerator rate. These entry-level models typically range from ₹12,000 to ₹25,000. The GST component adds ₹3,360 to ₹7,000 to the final price.

Manufacturers use the same refrigerator HSN code 84182100 for single door variants. The tax calculation remains identical across all brands and models.

2. Double Door and Multi-Door Models

Premium double door and multi-door refrigerators also face 28% GST. These models usually cost between ₹25,000 to ₹1,50,000 or more. The higher price directly increases the absolute GST amount.

Side-by-side and French door refrigerators follow the same refrigerator HSN code. The GST burden can reach ₹42,000 or more for premium models.

Impact of GST on Consumers and Market

Understanding the GST implications across various refrigerator categories helps consumers make informed purchasing decisions and budget accordingly for their home appliance needs.

1. Price Implications for Buyers

The 28% GST on refrigerators significantly impacts consumer purchasing decisions. Many buyers delay purchases or opt for smaller capacity models. The high tax rate makes refrigerators less affordable for middle-class families.

On the other hand, having GST as a single system means there are now less taxes and it’s easier to comply. In the past, the sum of excise duty, VAT and similar levies was very close to current GST.

2. Market Response to GST Rates

Refrigerator manufacturers have adjusted their pricing strategies post-GST implementation. Some brands offer attractive financing schemes to offset the tax impact. Online retailers frequently provide GST-inclusive pricing for better transparency.

The uniform refrigerator HSN code application has streamlined inventory management. Dealers can now focus more on customer service rather than complex tax calculations.

Input Tax Credit Benefits on GST

For Businesses and Dealers

Registered businesses can claim input tax credit on refrigerator purchases. The GST on refrigerator paid becomes recoverable if used for business purposes. This benefit significantly reduces the effective cost for commercial buyers.

Hotels, restaurants, and offices can claim full credit using the refrigerator HSN code documentation. Proper invoice maintenance ensures smooth credit claims during GST filing.

How to Claim Input Tax Benefit?

Eligibility Criteria

Only GST-registered entities can avail input tax credit benefits. The refrigerator must be used for business activities, not personal consumption. Maintaining proper records with refrigerator HSN code details becomes crucial for compliance.

State-wise Variations and Considerations

Here’s the good news – no matter which state you’re shopping in, you’ll pay the same GST rate on your refrigerator!

Uniform GST Application Across India

Aspect	Details
GST Rate	28% uniform across all Indian states
State Variations	None, completely standardized nationwide
Interstate Trade	Simplified pricing and trade between states
Previous System	Different VAT rates caused price disparities across states
Current Benefit	Fair pricing regardless of where you buy

Comparison with Other Home Appliances

Wondering how refrigerator GST stacks up against other appliances you might be buying? Here’s how the tax burden compares across different home essentials and luxuries.

GST Rates Across Home Appliances

Appliance Category	GST Rate	HSN Code	Government Classification	Price Impact Example
Refrigerators	28%	84182100	Luxury/Premium	₹50,000 → ₹64,000
Air Conditioner	28%	84151000	Luxury/Premium	₹40,000 → ₹51,200
Washing Machines	28%	84501200	Luxury/Premium	₹30,000 → ₹38,400
Water Purifiers	18%	84212100	Essential	₹15,000 → ₹17,700
Microwave Ovens	28%	85165000	Luxury/Premium	₹20,000 → ₹25,600
Electric Fans	12%	84145100	Essential	₹3,000 → ₹3,360
LED Lights	12%	85395000	Essential	₹500 → ₹560

Consumer Behavior Impact

Consumer Response	Reason	Alternative Options	Trade-offs
Shift to mini-fridges	Lower absolute GST amount	Smaller capacity models	Limited storage, frequent restocking
Consider import options	Potential exemptions available	Imported models with duty benefits	Complex paperwork, higher shipping costs
Delay purchases	Wait for price drops or sales	Festival season shopping	Living without refrigeration longer
Choose domestic brands	Better warranty and service	Local manufacturing benefits	Still pay same 28% GST rate
Opt for exchange deals	Reduce effective purchase price	Trade-in old appliances	Limited to available exchange value

Market Positioning Analysis

Tax Category	Government Intent	Consumer Perception	Market Reality
28% GST Items	Luxury/discretionary spending	High-end lifestyle products	Basic necessity for food storage
18% GST Items	Semi-essential category	Reasonable tax burden	Health and safety focused
12% GST Items	Essential/basic needs	Affordable and accessible	Daily use necessities

Tips for Smart Refrigerator Purchases

Nobody likes paying more than they have to, so here are some practical ways to make your refrigerator purchase easier on your wallet while staying on the right side of GST rules.

Timing Your Purchase

• Shop during festival sales: This is when you’ll find the best deals! Many stores include GST in their already-discounted festival prices, so you get more bang for your buck.
• Wait for year-end clearances: December and January are goldmines for appliance shopping. Retailers want to clear inventory, and those lower prices help offset the GST sting.
• Don’t ignore exchange offers: Got an old refrigerator gathering dust? Exchange deals can knock down your effective purchase price and make that GST more bearable.

Understanding Your Real Costs

• Budget for the full picture: When you see a ₹50,000 refrigerator, remember you’re actually paying ₹64,000 after GST. Add installation, extended warranty, and future maintenance to get your true cost.
• Shop around like your wallet depends on it: Different retailers have different pricing strategies. What looks expensive at one store might be a steal at another.
• Get proper paperwork: Make sure your bill clearly shows the HSN code 84182100. Trust me, you’ll need this for warranty claims and if you ever decide to sell.

Understanding GST on refrigerator purchases is just one aspect of GST compliance. Whether you’re a business owner selling appliances or need GST registration services, RegisterKaro  simplifies the entire process for you.

Why Choose RegisterKaro for GST Services?

• Expert GST registration assistance within 24 hours.
• Complete documentation support with proper refrigerator HSN code guidance.
• Ongoing compliance management and filing support.
• Transparent pricing with no hidden charges.

Ready to streamline your GST compliance? 

Contact RegisterKaro today for professional GST registration and compliance services. 

Frequently Asked Questions (FAQs)

1. What is the current GST rate on refrigerators in India?

 The GST on refrigerators is currently 28% across India. This rate applies to all types of refrigerators including single-door, double-door, and multi-door variants.

2What is the HSN code for refrigerators under GST?

 The refrigerator HSN code is 84182100. This code must be mentioned on all invoices and GST returns for refrigerator transactions.

3. Why is HSN code 84182100 specifically assigned to refrigerators?

 HSN code 84182100 covers “Refrigerators, household type” under Chapter 84. This classification ensures uniform taxation and easy identification across all GST documentation.

4. What happens if the wrong HSN code is mentioned on my refrigerator invoice?

 Incorrect HSN codes can lead to GST compliance issues and penalty problems. Always verify that your invoice shows HSN code 84182100. Contact the seller immediately if you notice an error.

5. How is GST calculated on refrigerator purchases?

 GST calculation is simple: multiply the base price by 28%. For a ₹30,000 refrigerator, the GST on refrigerator would be ₹8,400, making the total ₹38,400.

6. Do all types of refrigerators use the same HSN code 84182100?

 Yes, HSN code 84182100 applies to all household refrigerators – single door, double door, side-by-side, French door, or mini refrigerators. Commercial refrigeration equipment may have different HSN codes.

7. Is HSN code mandatory for refrigerator GST filing and returns?

 Yes! HSN code 84182100 is mandatory for all GST documentation including invoices and returns. Missing HSN codes can result in return rejection or compliance notices.

8. What documents should I check while buying a refrigerator?

 Ensure the invoice mentions the correct refrigerator HSN code 84182100 and GST breakdown. This documentation is crucial for warranty claims and business tax credits.

9. Can online and offline refrigerator prices differ due to GST?

 No, the GST on refrigerator rate remains 28% for both online and offline purchases. However, retailers may offer different base prices or promotional discounts.

10. Will GST rates on refrigerators change in the future?

 While industry demands exist for rate reduction, the government hasn’t announced any immediate changes. The 28% GST on refrigerator rate continues as per current policy framework.