Impact of GST Rate on Domestic Appliances and Electrical Machinery

Updated on: Oct 7th, 2025

8 min read

In the modern age, many electronic appliances have become part of basic needs. Every household has a fridge, washing machine, vacuum cleaner, chimney etc for the fulfilment of basic needs. We will discuss the impact of the GST rates on such appliances. We will also discuss the rates declared for electrical machinery.

Key Takeaways
The 56th GST Council meeting has announced important updates with changes effective from 22nd September 2025:
The GST rates on Air-conditioning machines, all televisions (including up to 32 inches), and dishwashing machines have been reduced from 28% to 18%.

Tax Rates on Household Electronic Appliances in the Pre-GST Regime

The average VAT rate on most of household appliances is charged around 11-12.5% in most of the states. Excise duty is charged at the rate of 12.5% on household electronic appliances. An average total tax at the rate of around 25-26% on such goods (including CST and other local taxes)

GST Rate on Domestic Appliances and Electrical Machinery

Chapters No.	Particulars	Rates
GST Rates @5%
4421	Other articles of wood; such as clothes hangers, Spools, cops, bobbins, sewing thread reels and the like of turned wood for various textile machinery, Match splints, Pencil slats, Parts of wood, namely oars, paddles and rudders for ships, boats and other similar floating structures, Parts of domestic decorative articles used as tableware and kitchenware [other than Wood paving blocks, articles of densified wood not elsewhere included or specified, Parts of domestic decorative articles used as tableware and kitchenware]	5%
5911	Textile products and articles, for technical uses, specified in Note 7 to this Chapter; such as Textile fabrics, felt and felt-lined woven fabrics, coated, covered or laminated with rubber, leather or other material, of a kind used for card clothing, and similar fabrics of a kind used for other technical purposes, including narrow fabrics made of velvet impregnated with rubber, for covering weaving spindles (weaving beams); Bolting cloth, whether or not made up; Felt for cotton textile industries, woven; Woven textiles felt, whether or not impregnated or coated, of a kind commonly used in other machines; Cotton fabrics and articles used in machinery and plant; Jute fabrics and articles used in machinery or plant; Textile fabrics of metalised yarn of a kind commonly used in paper making or other machinery; Straining cloth of a kind used in oil presses or the like, including that of human hair; Paper maker's felt, woven; Gaskets, washers, polishing discs and other machinery parts of textile articles.	5%
8432	Agricultural, horticultural or forestry machinery for soil preparation or cultivation; lawn or sports-ground rollers; Parts [8432 90]	5%
8433	Harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; parts thereof	5%
8436	Other agricultural, horticultural, forestry, poultry-keeping or bee- keeping machinery, including germination plant fitted with mechanical or thermal equipment; poultry incubators and brooders; parts thereof.	5%
GST Rates@ 18%
8422	Dish washing machines, household [8422 11 00] and other [8422 19 00]; Machinery for cleaning or drying bottles or other containers; machinery for filling, closing, sealing or labelling bottles, cans, boxes, bags or other containers; machinery for capsuling bottles, jars, tubes and similar containers; other packing or wrapping machinery (including heat-shrink wrapping machinery); machinery for aerating beverages.	18%
8525	Closed-circuit television (CCTV), transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders [other than two-way radio (Walkie talkie) used by defense, police and paramilitary forces, etc.]	18%
8418	Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 8415	18%
8401	Nuclear reactors; machinery and apparatus for isotopes separation	18%
8419 [other than 8419 12]	Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 8514), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilising, pasteurising, steaming, drying, evaporating, vaporising, condensing or cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, non-electric [other than Solar water heater and system]	18%
8421	Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases	18%
8422	Dish washing machines, household [8422 11 00] and other [8422 19 00]; Machinery for cleaning or drying bottles or other containers; machinery for filling, closing, sealing or labelling bottles, cans, boxes, bags or other containers; machinery for capsuling bottles, jars, tubes and similar containers; other packing or wrapping machinery (including heat-shrink wrapping machinery); machinery for aerating beverages.	18%
8423	Weighing machinery (excluding balances of a sensitivity of 5 centigrams or better), including weight operated counting or checking machines; weighing machine weights of all kinds	18%
8428	Other lifting, handling, loading or unloading machinery (for example, lifts, escalators, conveyors, teleferics)	18%
8430	Other moving, grading, levelling, scraping, excavating, tamping, compacting, extracting or boring machinery, for earth, minerals or ores; piledrivers and pile-extractors; snow-ploughs and snow-blowers	18%
8431	Parts suitable for use solely or principally with the machinery of headings 8425 to 8430	18%
8433	Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce, other than machinery of heading 8437; parts thereof [8433 90 00]	18%
8434	Milking machines and dairy machinery	18%
8435	Presses, crushers and similar machinery used in the manufacture of wine, cider, fruit juices or similar beverages	18%
8437	Machines for cleaning, sorting or grading, seed, grain or dried leguminous vegetables; machinery used in milling industry or for the working of cereals or dried leguminous vegetables other than farm type machinery and parts thereof	18%
8438	Machinery, not specified or included elsewhere in this Chapter, for the industrial preparation or manufacture of food or drink,other than machinery for the extraction or preparation of animal or fixed vegetable or microbial fats or oils	18%
8439	Machinery for making pulp of fibrous cellulosic material or for making or finishing paper or paperboard	18%
8440	Book-binding machinery, including book-sewing machines	18%
8441	Other machinery for making up paper pulp, paper or paperboard, including cutting machines of all kinds	18%
8442	Machinery, apparatus and equipment (other than the machines of headings 8456 to 8465) for preparing or making plates, printing components; plates, cylinders and lithographic stones, prepared for printing purposes (for example, planed, grained or polished)	18%
8443	Printing machinery used for printing by means of plates, cylinders and other printing components of heading 8442; other printers, copying machines and facsimile machines, whether or not combined; parts and accessories thereof	18%
8445	Machines for preparing textile fibres; spinning, doubling or twisting machines and other machinery for producing textile yarns; textile reeling or winding (including weft-winding) machines and machines for preparing textile yarns for use on the machines of heading 8446 or 8447	18%
8448	Auxiliary machinery for use with machines of heading 8444, 8445, 8446 or 8447 (for example, dobbies, Jacquards, automatic stop motions, shuttle changing mechanisms); parts and accessories suitable for use solely or principally with the machines of this heading or of heading 8444, 8445, 8446 or 8447 (for example, spindles and spindles flyers, card clothing, combs, extruding nipples, shuttles, healds and heald frames, hosiery needles)	18%
8449	Machinery for the manufacture or finishing of felt or nonwovens in the piece or in shapes, including machinery for making felt hats; blocks for making hats	18%
8451	Machinery (other than machines of heading 8450) for washing, cleaning, wringing, drying, ironing, pressing (including fusing presses), bleaching, dyeing, dressing, finishing, coating or impregnating textile yarns, fabrics or made up textile articles and machines for applying the paste to the base fabric or other support used in the manufacture of floor covering such as linoleum; machines for reeling, unreeling, folding, cutting or pinking textile fabrics	18%
8453	Machinery for preparing, tanning or working hides, skins or leather or for making or repairing footwear or other articles of hides, skins or leather, other than sewing machines	18%

Impact of GST on Domestic Appliances and Electrical Machinery

Under the updated GST framework, effective from September 22, 2025, the tax structure has been simplified into two primary slabs: 5% and 18%, with a 40% demerit rate applied to select luxury and sin goods. Handlooms used in the handicraft industry continue to benefit from a Nil GST rate, supporting traditional artisans.

Previously, household electronic appliances, such as air conditioners, televisions, and dishwashers, were taxed at a rate of 28%, resulting in a 2–3% increase in the tax burden compared to the VAT regime. However, under the new GST structure, the tax rate on these items has been reduced to 18%, making them more affordable for consumers.

Manufacturers of household electronic appliances, including brands like Samsung, Godrej, and Voltas, will now be able to pass on the benefits of reduced GST rates to end consumers. Additionally, the availability of input tax credit on services used by manufacturers, which was not available under the VAT regime, will further reduce costs and enhance competitiveness.

In Mumbai, manufacturers previously faced an octroi charge of 5% in addition to other taxes (averaging 25–26%) on household electronic appliances. With the implementation of the new GST rates, this additional burden has been eliminated, providing significant relief to manufacturers in the region.

Overall, the revised GST rates aim to reduce the tax burden on consumers, promote domestic manufacturing, and simplify the tax structure, aligning with the government's vision of fostering economic growth and ease of doing business.

It is expected that the expected inflation and rise in the tax rate would increase the price of television, fridge, vacuum cleaner or air-conditioners. The price of commercial electrical machinery is expected to stay neutral.

Frequently Asked Questions

What is the GST rate for home appliances?

Usually 18%, but luxury models with extra features can hit 28%. So, it's always good to check the specific model or features to know the exact rate.

What is the impact of GST on electronics?

It has lowered prices, made them more affordable, and cleaned up supply chains so businesses can compete better. The streamlined tax system has also encouraged more innovation and efficiency in the sector.

What is the GST rate for domestic refrigerators?

Standard ones are 18%, but high-end, like smart fridges, might be 28%. So, the tax rate depends on the type and features of the fridge.

What is GST on electrical wires and switches?

They’re at 18% GST, keeping them budget-friendly for homes and big projects.

What is the GST rate for kitchen appliances?

Basic mixers and blenders are at 18%. Fancy smart ovens could be at 28%.

What is the GST rate for home products?

Standard stuff like fans are at 18%; luxury smart appliances are at 28%.

How are imported domestic appliances and electrical machinery taxed under GST?

They face Integrated GST (IGST) matching the domestic rate (18% or 28%) plus customs duties, so imported ACs from abroad can cost more than local ones.

About the Author

AJ

Manager - Content

As a qualified Chartered Accountant with extensive expertise in accounting, finance, taxes, and audit, I specialise in simplifying complex regulations for a broader audience. Well-versed in tax laws across India and the GCC region, I have a keen interest in the evolving finance ecosystem. Passionate about learning, I enjoy engaging in conversations, exploring new cultures through travel, and unwinding with music.. Read more

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