GST on the Indian Household: What You Pay on a Fridge, TV, Geyser or Dishwasher — and What the Council Meets About on 7 October
Every large household appliance — refrigerator, television, air conditioner, washing machine, dishwasher, geyser — now carries 18% GST, down from 28% since 22 September 2025. This is the rate on each, with its HSN code, how much tax sits inside an MRP you already paid, why a 28-to-18 cut takes 7.8% off a price and not 10%, what the evidence says about how much of it actually reached you, and what the GST Council is expected to take up when it finally meets on 7 October 2026 after more than a year without a sitting.
Two GST questions are live in most Indian homes this month. The first is simple and practical: what is the tax on the fridge, the television, the geyser, the dishwasher — and is it already in the price on the box? The second is the one the news is about: the GST Council has not met in more than a year, and it finally sits on 7 October 2026. This piece answers the first properly, with the rate and the HSN code for each appliance and the arithmetic to check any bill, and then sets out what the Council is expected to take up.
Rates stated here are those in force on 23 September 2026, following the 56th GST Council meeting of 3–4 September 2025 and the rate notifications effective 22 September 2025. Classification depends on the exact goods and their HSN heading; for a specific model or an unusual item, check the CBIC rate finder or ask before you invoice. This is general information, not advice on a particular transaction.
18% on refrigerators, televisions, air conditioners, washing machines, dishwashers, geysers, microwaves and vacuum cleaners · 5% on household electric fans, LED lamps and solar water heaters · 18% on mobile phones and laptops, unchanged · and on every one of these, an Indian retail price is quoted inclusive — nothing is added at the till.
1. What the GST Council actually did, and when
The rates you pay today come from the 56th GST Council meeting, held on 3–4 September 2025, and took effect on 22 September 2025 — the package the government marketed as GST 2.0. Three things changed at once:
- Four slabs became two. The 12% and 28% slabs were abolished. What remains for ordinary goods is 5% and 18%, with a nil rate on a list of essentials.
- A 40% rate was created for demerit goods — tobacco and pan masala, aerated and sugary drinks, luxury vehicles, and gambling. Nothing in an ordinary household falls in it.
- Almost every large appliance fell from 28% to 18%. That is the change that touched Indian homes directly, and it is the one this article is mostly about.
Since then the Council has not sat. The 57th meeting was scheduled for 12 September 2026, was moved because India hosted the BRICS Leaders' Summit in New Delhi on 12–13 September, and is now set for 7 October 2026, with the officers' meeting on 5–6 October. That will be the first full sitting in more than a year — an unusually long gap by the Council's own standards.
2. The rate on each appliance, with its HSN code
| Appliance | HSN heading | Before 22 Sept 2025 | Now |
|---|---|---|---|
| Refrigerator / freezer | 8418 | 28% | 18% |
| Television (all sizes) | 8528 | 18% up to 32", 28% above | 18% |
| Air conditioner | 8415 | 28% | 18% |
| Washing machine | 8450 | 28% | 18% |
| Dishwasher | 8422 | 28% | 18% |
| Geyser / electric water heater | 8516 | 28% | 18% |
| Solar water heater | 8419 | 5% | 5% |
| Microwave oven | 8516 | 28% | 18% |
| Vacuum cleaner | 8508 | 28% | 18% |
| Household electric fan | 8414 | 18% | 5% |
| LED lamps | 9405 | 12% | 5% |
| Mobile phone | 8517 | 18% | 18% (unchanged) |
| Laptop / desktop | 8471 | 18% | 18% (unchanged) |
Two notes a Chartered Accountant would add. First, the HSN heading, not the marketing name, decides the rate — a "smart TV" is still heading 8528, but a combination device may not be, and an imported unit carries basic customs duty on top of IGST. Second, the rate is the same whether you buy a ₹12,000 fridge or a ₹2,00,000 one; GST is proportional, so the burden in rupees is not.
3. How much tax is inside the price you already paid
Indian retail prices are quoted inclusive of GST. To pull the tax out of a price you have already seen, the formula is:
GST = price × rate ÷ (100 + rate) — so at 18%, GST = price × 18 ÷ 118, which is 15.254% of the sticker.
| You paid | GST inside it (18%) | Pre-tax value |
|---|---|---|
| ₹15,000 (geyser) | ₹2,288 | ₹12,712 |
| ₹40,000 (refrigerator) | ₹6,102 | ₹33,898 |
| ₹55,000 (television) | ₹8,390 | ₹46,610 |
| ₹65,000 (dishwasher) | ₹9,915 | ₹55,085 |
| ₹90,000 (air conditioner, installed) | ₹13,729 | ₹76,271 |
Within one state this is charged as 9% CGST plus 9% SGST; across states, or on an import, it is a single 18% IGST. Your invoice should show it split that way, and the HSN code should be on it. If you are buying for a business with GST registration, that is the figure you can claim as input tax credit — for a personal purchase, it is simply a cost. Run your own numbers in the GST calculator, which handles both directions, inclusive and exclusive.
4. The mistake nearly everyone makes about the cut
When the rate fell from 28% to 18%, the common assumption was that prices should drop by 10%. They should not. Ten percentage points off the rate is not ten per cent off an inclusive price, because the base is different at each end.
Take a product with a pre-tax value of ₹100. At 28% it retailed for ₹128. At 18% the same product retails for ₹118. The fall is 118 ÷ 128 − 1 = −7.81%. So on a ₹50,000 television, full pass-through of the cut is a new price of about ₹46,094 — a saving of roughly ₹3,906, not ₹5,000.
| Old price (at 28%) | Full pass-through price (at 18%) | You should save |
|---|---|---|
| ₹20,000 | ₹18,438 | ₹1,563 |
| ₹40,000 | ₹36,875 | ₹3,125 |
| ₹50,000 | ₹46,094 | ₹3,906 |
| ₹80,000 | ₹73,750 | ₹6,250 |
| ₹1,20,000 | ₹1,10,625 | ₹9,375 |
Knowing that number matters, because it is the benchmark against which to judge what actually happened next.
5. Did the cut reach you? The honest answer
Partly, and unevenly. A working paper from the National Institute of Public Finance and Policy examining prices after the rate cuts found the strongest pass-through precisely in household durables — and even there, below the 7.8% arithmetic:
| Item | Measured price change after the cut | Full pass-through would have been |
|---|---|---|
| Air conditioners | −5.9% | −7.8% |
| Washing machines | −2.2% | −7.8% |
| Geysers | −1.1% | −7.8% |
| Food, household goods, personal care | CPI rose in the four months after | — |
Two things can both be true here: input costs and the rupee moved during the same months, so not every gap is a seller pocketing the difference; and the measured shortfall is real. The Finance Minister's position has been that the benefit was passed on in full.
What has changed is your recourse. The anti-profiteering machinery under section 171 of the CGST Act has a sunset: 1 April 2025. No new complaint about a rate cut not being passed on can be filed. Cases filed before that date are being disposed of by the Principal Bench of the GST Appellate Tribunal, which took over from the Competition Commission of India on 1 October 2024. In plain terms — for the September 2025 cuts, there was never a complaint window open in the first place.
That leaves the check to you, and it is a two-minute one: find the pre-cut price of the same model (old listings, review sites, your own old invoice), multiply by 0.9219, and compare with what you are being asked to pay.
6. One year on: what the reform did to revenue and to buying
| Measure | Figure |
|---|---|
| Estimated net revenue impact of the rate package | about ₹48,000 crore forgone |
| Gross GST collections, August 2026 | nearly ₹2 lakh crore, up 14.8% year-on-year |
| Collections trend since January 2026 | ₹1.90–2.00 lakh crore a month; above ₹2 lakh crore in April and July 2026 |
| Estimated direct consumption boost (SBI Research) | ₹70,000 crore, with total additional demand put at ₹1.98 lakh crore |
| Passenger vehicle dispatches, April–June 2026 | record 12.7 lakh units, up 25.9% year-on-year |
| Two-wheeler dispatches, same quarter | 56.3 lakh units, up 20.3% |
Net revenue was subdued through the end of 2025 and began recovering from January 2026. Reporting on the appliance market notes a second effect beyond price: buyers trading up — bigger screens, higher-specification models — rather than simply pocketing the saving. For a household that is worth knowing about itself, because a cut you spend on a larger product is not a cut you kept.
7. What the Council is expected to take up on 7 October
Nothing is decided until the Council meets and issues its recommendations, and what follows is what practitioners expect to be on the table — not outcomes:
- Registration simplification, named as an agenda item, including for businesses passing on input tax credit above ₹2.5 lakh a month.
- Input tax credit reform — proposals to delink a buyer's credit from whether the supplier actually deposited the tax, with a safe harbour for a buyer who holds a valid invoice, received the goods and paid through banking channels.
- Compensation cess balances stranded by the transition, with automobile dealers alone estimated to hold about ₹2,500 crore.
- A roadmap for petroleum products — petrol, diesel, ATF and natural gas — entering GST in phases.
- Digital economy classification, particularly app-based platforms on subscription models versus conventional aggregators.
- Faceless administration extended from refunds to assessments and registrations.
For a household, none of these changes the rate on an appliance. For a small business, the ITC and registration items are the ones that would change daily life.
Frequently Asked Questions
What is the GST rate on a refrigerator in India? 18%. Refrigerators and freezers fall under HSN heading 8418 and carried 28% until 21 September 2025; the rate has been 18% since 22 September 2025. On a ₹40,000 fridge the tax inside the price is ₹6,102.
What is the GST rate on a television? 18%, for every screen size. Televisions are HSN 8528. Before 22 September 2025, sets up to 32 inches were at 18% and larger ones at 28%; the size distinction is gone, so a 65-inch set and a 32-inch set now carry the same rate.
What is the GST rate on a geyser or water heater? 18% on an electric geyser, HSN 8516, down from 28%. A solar water heater is treated differently and is at 5%, which is the one exception worth remembering when comparing quotes.
What is the GST rate on a dishwasher? 18%. Dishwashing machines are HSN 8422 and moved from 28% to 18% on 22 September 2025. Within a state it is charged as 9% CGST plus 9% SGST; on an inter-state sale or an import, as 18% IGST, with basic customs duty applying separately on an imported unit.
What is the GST rate on an air conditioner and a washing machine? Both 18% — air conditioners under HSN 8415 and washing machines under 8450, each down from 28%. Installation charged by the same supplier as part of the supply generally follows the same rate.
Is GST included in the price shown in the shop? Yes. Indian retail prices for goods are quoted inclusive of GST, so nothing is added at the counter. The invoice should still show the tax separately along with the HSN code, and you are entitled to ask for that.
How much did prices fall when GST went from 28% to 18%? Arithmetically, an inclusive price should fall 7.81% — 118 ÷ 128 − 1 — not 10%. Measured prices fell by less on most appliances: about 5.9% on air conditioners, 2.2% on washing machines and 1.1% on geysers in the period studied by NIPFP.
Can I complain if a shop did not pass on the GST cut? Not through the anti-profiteering route. Section 171 has a sunset date of 1 April 2025, so no new complaint can be filed; pending cases are with the Principal Bench of the GST Appellate Tribunal. Comparing the old price against the 7.81% benchmark before you buy is the practical protection.
Can I claim GST on an appliance I bought? Only if it is a business purchase, you are registered, the invoice carries your GSTIN, and the appliance is used for business — and even then several categories are blocked. A fridge for the home is a cost, not a credit.
When is the next GST Council meeting? 7 October 2026 — the 57th meeting, moved from 12 September because of the BRICS Leaders' Summit in New Delhi, with the officers' meeting on 5–6 October. It is the first full sitting in over a year.
Sources
- 56th GST Council meeting, 3–4 September 2025: Press Information Bureau, "Recommendations of the 56th Meeting of the GST Council"; rate notifications effective 22 September 2025.
- Appliance rates and HSN headings: ClearTax, "GST on Electronics in India 2026 — latest rates and HSN code"; Tally Solutions, "HSN codes for AC, refrigerator and washing machine"; ClearTax HSN pages for headings 8422 and 8516; Bajaj Finserv note on the September 2025 electronics rate reduction.
- Pass-through: National Institute of Public Finance and Policy working paper as reported by Business Standard, "GST cuts cooled prices of durables, not of essentials" (air conditioners −5.9%, washing machines −2.2%, geysers −1.1%); Bank of Baroda note on mixed consumer-price impact; Finance Minister's statement that benefits were passed on in full (Deccan Herald).
- Anti-profiteering: CGST Act section 171 and the notification dated 30 September 2024 fixing 1 April 2025 as the sunset date; GST Appellate Tribunal Principal Bench jurisdiction from 1 October 2024 (Business Standard, ClearTax).
- One year on: Business Standard, "One year of GST 2.0: net GST revenue shows signs of recovery" (21 September 2026); August 2026 collections near ₹2 lakh crore, up 14.8%; SBI Research consumption estimates; passenger vehicle and two-wheeler dispatch figures for April–June 2026 as reported.
- 57th Council meeting: TaxGuru analysis of the rescheduling to 7 October 2026 and the 5–6 October officers' meeting; Grant Thornton India, "57th GST Council meeting: six reforms that can define GST's second decade" (expectations, not decisions).
Rates and classifications change by notification; verify against the CBIC rate finder before relying on a rate for an invoice or a contract. Educational analysis, not tax advice on a specific transaction.