Water Cooler New GST Rate: Domestic and Industrial Use
Water coolers are essential for homes, offices, schools, hospitals, and factories—providing access to cold drinking water, especially during hot Indian summers. But whether you’re buying one for home or business, it’s important to know the water cooler GST rate. This blog explains how GST applies to different types of water coolers, from household dispensers to industrial chillers.
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New GST Rate on Water Coolers in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for common water-cooling products (no compensation cess).
HSN & New GST Rate — Water Coolers and Related Equipment
| Water Cooler / Equipment | HSN Code | New GST Rate | Remarks |
|---|---|---|---|
| Domestic water coolers (table/standing units) | 8418 (e.g., 8418 69 20) | 18% | Electric refrigerating equipment. |
| Bottled water dispensers (hot/cold) | 8418 | 18% | Includes compressor or thermoelectric types. |
| Industrial coolers / chillers for drinking water | 8418 | 18% | High-capacity canteen/factory installations. |
| Solar water heaters | 8419 | 5% | Renewable-energy device category. |
| “Solar-powered” water coolers (cooling function) | 8418 | 18% | Still 8418 unless classified as a solar water heater. |
| Water purifier + cooler (combo) | 8421 / 8418* | 18% | *Classification depends on principal function. |
Classification tip: If the unit’s essential function is cooling, classify under 8418 @ 18%. If it is a solar water heater, classify under 8419 @ 5%. Combo purifier-coolers may fall under 8421 @ 18% when filtration is the principal function.
Domestic vs Industrial Water Cooler — New GST Comparison
| Category | Typical Usage | New GST Rate | Remarks |
|---|---|---|---|
| Domestic water cooler | Homes, small offices | 18% | Plug-and-use models, bottle or direct line. |
| Industrial water cooler / chiller | Factories, schools, canteens | 18% | High-capacity with storage & rapid cooling. |
| Water dispenser (hot/cold) | Reception areas, office pantries | 18% | Heating/cooling combo included. |
Billing note: Spare parts and installation services generally follow their respective HSN/SAC; most accessories (shelves, taps, valves) are 18% unless a specific concessional entry applies.
Is GST Applicable on Water Coolers?
Yes. Under the GST (Goods and Services Tax) regime, water coolers are classified as electrical appliances under HSN Code 8418, which includes:
- Water coolers
- Refrigerated dispensers
- Cooling cabinets
- Industrial chillers
Old GST on Water Cooler in India
(Old GST Rates – Applicable Until 21st September)
| Water Cooler Type | HSN Code | GST Rate |
|---|---|---|
| Domestic water coolers (small units) | 8418 | 18% |
| Bottled water dispensers | 8418 | 18% |
| Industrial water coolers/chillers | 8418 | 18% |
| Solar-powered water cooling systems | 8418 / 8419 | 12% or 18% |
Domestic vs Industrial Water Cooler Old GST Comparison
| Category | Usage | GST Rate | Remarks |
|---|---|---|---|
| Domestic | Homes, small offices | 18% | Plug-and-use coolers |
| Industrial | Factories, large canteens | 18% | High-capacity cooling machines |
| Water dispenser | Offices, reception areas | 18% | Includes heating/cooling combo |
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Input Tax Credit on Water Cooler Purchases
If you’re a business buying water coolers for:
- Office premises
- Hospitals or clinics
- Retail or factory floors
- Schools, colleges, or institutions
You can claim Input Tax Credit on the GST paid, as long as it’s for business use.
GST on Water Cooler Repair and AMC Services
| Service Type | SAC Code | GST Rate |
|---|---|---|
| Water cooler repair | 9987 | 18% |
| AMC or maintenance plans | 9987 | 18% |
Whether you’re a homeowner buying a dispenser or a facility manager purchasing industrial coolers, understanding the GST on water cooler helps with pricing, GST invoices and returns , and claiming Input Tax Credit (ITC) where applicable.
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I am a chartered accountant with over 14 years of experience. I understand income tax, GST, and balancing financial records. I analyze financial statements and tax codes effectively. However, I also have a passion for writing, which is different from working with numbers. Recently, I started writing articles and blog posts. My goal is to make finance easier for everyday people to understand.
Frequently Asked Questions
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What is the GST rate on water cooler in India?The standard GST rate is 18%, regardless of whether it's used for home or industrial purposes.
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Can I claim ITC on water coolers bought for office?Yes, businesses can claim Input Tax Credit on water coolers used for work purposes.
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Is GST applicable on water cooler repairs or AMC services?Yes. These are taxable at 18% GST as per service tax norms.
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Are solar or eco-friendly water coolers taxed differently?Some solar-based models may fall under 12% GST, but classification depends on technical composition and invoice details.
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What HSN code is used for water coolers?HSN Code 8418 is used for all refrigerating and water cooling appliances.
