Washing machines are an essential home appliance, and understanding how Goods and Services Tax (GST) applies to them is crucial for both consumers and businesses. Whether you’re buying a new machine for your home or managing inventory as a seller or manufacturer, the applicable GST rate affects pricing, purchasing decisions, and overall cost planning.
What Is the GST on Washing Machines?
The GST rate on washing machines is 18% and applies uniformly across all models, including semi-automatic, fully automatic, front-load, and top-load machines. You can calculate GST on washing machines by applying 18% to the final selling price. For example, if your washing machine’s price is ₹20,000, the GST component will be ₹3,600, making the total invoice amount ₹23,600.
Earlier, washing machines were taxed up to 28%, depending on the state. With GST, the rate was reduced to a uniform 18%, leading to lower prices in many cases. However, if sellers did not adjust their base prices and simply added 18% GST on top of existing rates, some customers may have noticed a price increase.
For businesses, GST has increased the initial cost since tax is paid upfront. It also requires regular return filing and record-keeping. Input tax credit helps reduce the burden, but cash flow can still be affected.
Both imported and locally manufactured washing machines attract 18% GST. However, imports also incur customs duties, making them costlier than domestic units despite the same GST rate.
GST Rates on Washing Machine
The HSN code for washing machines is 8450. By the use of this code, businesses can easily categorise washing machines for taxation purposes in compliance with the GST regulations in India. Products under HSN 8450 fall into the 18% taxation category according to the GST law. The code applies to automatic and semi-automatic washing machines and all other machine types. Washing machines of different types receive extra digits to their HSN code in order to represent their distinct type. Additional details are available in the provided table.
| HSN Code | Washing Machine Type | Revised GST | Old GST |
| 8450 | Household or laundry type (<10 kg) | 18% | 28% |
| 84501100 | Fully automatic (<10 kg) | 18% | 28% |
| 84501200 | With built-in centrifugal drier | 18% | 28% |
| 84502000 | Household or laundry type (>10 kg) | 18% | 28% |
| 845090 | Parts | 18% | 28% |
Impact of Current GST Rate on Washing Machine
Uniform tax rate: Post-GST, a standard 18% GST rate is applicable on washing machines instead of varying based on state-specific VAT, CST, and excise duty
Reduced cascading of taxes: There is no more cascading of taxes (tax on tax) to reduce the total tax burden on manufacturers.
Pricing stability: Due to a uniform GST, there are fewer pricing fluctuations, benefiting both manufacturers and consumers alike.
FAQs
Q1. How is GST calculated on a washing machine purchase?
If the base price of a washing machine is Rs.20,000, a GST of 18% of it (Rs.3,600) is added over it to get the total cost, i.e., Rs.23,600.
Q2. What are the different types of washing machines listed under HSN code 8450?
HSN code 8450 includes all types of washing machines—semi-automatic, fully automatic, top-load, front-load, and commercial units, including those with built-in dryers.
Q3. How can businesses ensure accurate GST compliance for washing machines?
Businesses should apply the correct HSN code, charge 18% GST, maintain proper invoices with GSTIN, and file returns on time to stay compliant.
Q4. What should I do if there is a mismatch in the ITC details for washing machines?
Check invoice details, HSN code, and GSTIN for any errors. If the mismatch continues, reconcile the discrepancy with the supplier and adjust it in the subsequent GST return. If needed, consult a tax professional for an accurate resolution.
Q5. What is the GST tax rate on washing machines?
The GST rate on washing machines in India is 18%.
Q6. Is there any GST rebate or subsidy on energy-efficient washing machines?
Currently, there is no specific GST rebate or subsidy on energy-efficient washing machines under GST law.
