GST on Fridge: Complete Guide to Rates & Compliance

Key takeaways: 
 

• The GST rate on refrigerators has been reduced from 28% to 18%, and the new rate will apply starting 22 September 2025.
   
• Savings of up to ₹6,000 can now be received depending on the fridge model.
   
• Input tax credit can be claimed by businesses if the fridge is used commercially.
   
• A rise in sales has been reported by retailers after the GST rate was lowered.

BONUS: ACCORDING TO RESEARCH BY THE INDIA BRAND EQUITY FOUNDATION, THE REFRIGERATOR MARKET IN INDIA WAS VALUED AT ₹46,732 CRORE (US$5.4 BILLION) IN 2024 AND IS PROJECTED TO GROW AT A CAGR OF 9.37%, REACHING ₹1,04,713 CRORE (US$12.1 BILLION) BY 2033.

GST on Fridge refers to the Goods and Services Tax applicable to refrigerator purchases under India's indirect tax system for consumers and retailers.

Ramesh, a working professional from Bhopal, was planning to buy a double-door fridge worth ₹30,000 in August 2025. Earlier, fridges attracted a 28% GST, which meant ₹8,400 tax, making the final cost ₹38,400. 

But after the new GST rate cut effective September 22, 2025, fridges now fall under the 18% bracket. This reduced his tax to ₹5,400, lowering the final cost to ₹35,400. Ramesh saved ₹3,000 directly due to the revised GST. For middle-class buyers like him, the GST change made a huge financial difference. 

This blog explains the GST on fridge in detail, definition, latest rates, real-life savings, government intent, dealer impact, and GST credit rules.

GST on Fridge: What Does It Mean?

GST on Fridge is the tax you pay when buying a refrigerator in India. It was reduced from 28% to 18% on 22nd September 2025. This change helps families save money on big appliances.

These points help explain the meaning and importance of GST on Fridge in simple terms:

• Tax Applied on Sale Price: GST on Fridge is calculated on the fridge's price before any discounts. 

For example, If a fridge costs ₹25,000, then 18% GST would be ₹4,500, bringing the total cost to ₹29,500. This shows how GST directly affects the final price you pay.

• Earlier Rate Was 28%: Before the change, the same ₹25,000 fridge would cost ₹32,000 after 28% GST (₹7,000). So, consumers are now saving ₹2,500 for the same product.
   
• Affects All Buyers Across India: Whether you buy a fridge in Delhi or a small town in Kerala, GST on  Fridge remains the same. This makes fridge prices more uniform and predictable across the country.
   
• Part of the Government's Reform Strategy: Reducing GST on fridges is part of a bigger plan to make tax compliance simpler and support consumer demand. These changes aim to boost the economy while helping people save.

These points clearly show that GST on a Fridge has a real impact on both pricing and purchasing decisions.

How the New GST Rate Impacts Fridge Buyers?

The lower GST rate has made fridges more affordable for people from various income levels. Middle-class families are the biggest beneficiaries of this move, as the drop in tax allows them to buy essential home appliances without going over budget.

Let’s see how this change helped one buyer, Priya.

These pointers show the impact of the GST change using a real-life example of Priya:

• Priya's Budget and Plan: Priya, a 32-year-old schoolteacher from Pune, wanted to buy a single-door fridge. She had a strict budget of ₹25,000. She hoped to find a fridge that fit her budget, including taxes.
   
• Old GST Rate Made Fridge Too Expensive: The fridge she liked cost ₹20,000 before GST. Under the earlier 28% tax, she had to pay ₹5,600 extra. Total: ₹25,600.
  This was slightly more than she could afford, so she decided to wait.
   
• New GST Rate Reduced Her Final Price: After the GST rate dropped to 18%, the tax became only ₹3,600. Now, the fridge costs ₹23,600. She could finally buy it and still had ₹1,400 left in her budget.
   
• Priya's Total Savings: By simply waiting a few weeks, Priya saved ₹2,000 because of the revised GST on the Fridge. She used the extra amount to buy a voltage stabiliser.

This example clearly shows how lower GST on fridges makes it easier for families to buy necessary items without financial stress.

GST Rate Before and After the new rule: 

The GST rate cut on fridges has led to noticeable price drops across different models. This change helps both budget and premium buyers save money.

Here’s a table that shows how the GST on Fridge has changed across various models.
 

This table makes it clear that buyers across all price ranges can now save up to ₹6,000 due to the GST on Fridge change.

Why Did the Government Cut GST on Fridge?

The government decided to reduce GST on Fridge as part of a larger economic plan. The aim is to make essential home appliances more affordable while also supporting Indian manufacturers.

Here are the main reasons behind this decision:

• To Support Middle-Class Families
  Fridges are considered basic home needs today. Reducing GST from 28% to 18% lowers the financial burden. This helps households like Ravi’s, who saved ₹2,400 on a mid-range fridge.
   
• To Increase Appliance Sales
  Lower prices mean more people are likely to buy fridges. This can boost overall sales in both urban and rural markets. Brands like LG and Whirlpool have already reported a rise in demand.
   
• To Boost Indian Manufacturing
  More demand encourages companies to produce in India under the "Make in India" programme. This helps create more local jobs and reduces imports.
   
• To Simplify the GST Structure
  Having fewer tax slabs makes it easier for businesses and customers to understand pricing. It improves transparency and reduces billing confusion.

The GST on Fridge cut is not just about saving money; it also supports economic growth and domestic industry.

GST on Other Appliances vs GST on Fridge

The GST Council reduced tax rates not only on fridges but also on other large appliances. Let’s compare the revised GST rates to see the full impact.

This table helps buyers understand where fridges stand among other appliances.
 

As this table shows, GST on Fridge is part of a broader trend where several home appliances have become more affordable.

How GST on Fridge Affects Retailers and Dealers:

The GST cut not only helps buyers but also has a strong impact on fridge sellers and electronics retailers.

Let’s look at how Amit, a fridge dealer from Surat, benefited from this change.

• More Sales Due to Lower Prices
  Amit noticed a 20% increase in sales after the GST on Fridge dropped. More customers started visiting his store in October 2025. This helped him clear his Diwali stock faster than
  last year.
   
• Better Inventory Movement
  With more units sold, Amit needed to restock sooner. This helped him negotiate better deals with manufacturers. He ordered 150 new units instead of the usual 100.
   
• Input Tax Credit (ITC) Still Available
  Though the GST rate is lower, Amit still claims input tax credit on the fridges he buys in bulk. His net tax cost remains low, improving business cash flow.
   
• Increased Online and Offline Demand
  Amit has seen rising orders from online platforms too. Buyers prefer dealers who offer GST-included pricing with clear billing.

This example shows how GST on Fridge helps retailers grow their business while also offering better value to customers.

GST Credit for Fridge Purchases: For Individuals and Businesses

While most people buy fridges for personal use, some businesses purchase them for office or commercial needs. The GST on Fridge allows eligible businesses to claim input tax credit if certain conditions are met.

Let’s look at how GST credit works:

• Personal Buyers Cannot Claim GST Credit
  If you’re buying a fridge for home use, you cannot claim back the GST paid.

For example, if Ramesh buys a fridge for ₹30,000 with 18% GST, he pays ₹35,400. He cannot recover the ₹5,400.

• Businesses Can Claim ITC on Commercial Use
  Companies with GST registration can claim input tax credit if the fridge is used for business purposes, like office kitchens or staff facilities.

Suppose a company buys 5 fridges worth ₹1,50,000 in total. The GST paid (₹27,000) can be claimed under GSTR-3B.

• GST Invoice Must Have Business Details
  To claim the credit, the buyer’s GSTIN must appear on the invoice along with the HSN code of the fridge. Without these, the claim will be rejected during GST filing.
   
• Claim Must Be Filed in the Same Tax Period
  Businesses must report the GST paid under the correct month in their GSTR return to avoid mismatch notices. This helps ensure compliance and avoid penalties.

So, while GST on Fridge helps all buyers save money, it also benefits GST-registered businesses when used correctly.

Latest GST Council Decision:

The GST Council often reviews tax rates on goods and services based on consumer demand and economic conditions. In its 52nd meeting, a major change was made to the GST on Fridge.

Let’s see the highlights from that official update:
 

The full news was shared by PIB. The revised GST on Fridge was timed right before the festive season, helping Indian families and dealers benefit equally.

Conclusion

The change in GST on Fridge from 28% to 18% has made refrigerators more affordable for Indian households. Families can now buy fridges at lower prices without waiting for festive sales or discounts. 

This tax cut also supports small shops and large retailers by increasing sales and bringing more people into the market. For businesses, it creates an opportunity to save through input tax credit if the fridge is used commercially.

FAQs on GST on Fridge

1. Is GST on Fridge different for imported and Indian-made models?
No, GST on Fridge is the same for both imported and Indian-made refrigerators. The rate is 18% for all standard models.

2. Does GST on Fridge apply to used or second-hand fridges?
If the used fridge is sold by a registered dealer, GST at 18% may apply. For peer-to-peer resale, GST is usually not charged.

3. Is GST on Fridge included in the EMI amount?
Yes, when you buy a fridge on EMI, the total cost, including GST, is divided into equal monthly instalments.

4. Can I claim a refund if I overcharged the GST on Fridge at a shop?
Yes, you can report the overcharge on the GST portal with a copy of your invoice to request a refund or action.

5. Are smart fridges with internet connectivity charged higher GST?
No, GST on Fridge is charged based on the product’s classification, not its smart features. The rate remains 18%.

 

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