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Water Filter GST Update: Still at 18% in India – Industry Demands 5% for Affordable Clean Water

  • Writer: Rahul N
    Rahul N
  • Sep 28
  • 4 min read

Posted on September 28, 2025 | By Grok Insights

The recent GST slab overhaul in India, effective September 22, 2025, has sparked discussions about taxes on essential household items like water filters. With clean drinking water being a pressing need, the water filter GST update remains a hot topic for homeowners and businesses. Despite hopes for a tax cut, water filters continue to be taxed at 18% GST, and the industry is pushing hard for a reduction to 5%. Here’s everything you need to know about the latest water filter GST update, its implications, and what’s next.

What’s the Latest Water Filter GST Update?

The 56th GST Council meeting simplified India’s GST structure into four slabs: 0%, 5%, 18%, and 40%. This revamp aimed to make essentials more affordable while taxing luxury goods higher. However, water filters and purifiers, classified under HSN Code 8421 (filtering or purifying machinery for liquids), remain stuck at 18% GST, with no relief in sight from the September update.

Key points of the water filter GST update:

  • No Rate Change: Water filters, including RO purifiers and UV systems, continue at 18% GST, absorbing some items previously at 12%.

  • Cost Impact: A ₹10,000 water purifier incurs ₹1,800 in GST, making it a significant expense for middle- and low-income households.

  • Service Taxes: Installation and maintenance services for water filters also attract 18% GST, adding to the overall cost.

This lack of change in the water filter GST update has disappointed consumers and industry players who hoped for a tax break to make clean water more accessible.

Why the Industry Wants a 5% GST Rate

The Water Quality India Association (WQIA), representing brands like Kent RO and Eureka Forbes, has been lobbying for a 5% GST rate on water filters. In August 2025, they submitted a detailed proposal to the Finance Ministry, emphasizing the water filter GST update as critical for public health and sustainability. Their key arguments include:

  • Health Crisis: Over 70% of India’s surface water is contaminated, leading to waterborne diseases like cholera and typhoid. Affordable water filters could save lives.

  • Economic Barrier: The 18% GST has reduced sales by 15-20% in urban areas, per industry estimates, limiting access to clean water solutions.

  • Environmental Impact: Lower taxes could reduce reliance on bottled water, cutting plastic waste and aligning with India’s sustainability goals.

  • Global Precedent: Countries like Singapore and Australia tax water purifiers at 0-5%, recognizing their role in public welfare.

The WQIA’s push for a water filter GST update to 5% has gained media attention, with outlets like Economic Times and The Hindu highlighting the need for policy action. However, as of September 28, 2025, the government has not signaled any immediate changes.

How the Current GST Rate Affects You

For consumers:

  • Budget Planning: The 18% GST on water filters means higher upfront costs. Look for festive season discounts (e.g., Navratri or Diwali sales) to offset the tax burden.

  • Health Investment: Despite the tax, a quality water filter is a long-term investment in your family’s health, reducing medical expenses from waterborne illnesses.

  • Eco-Conscious Choice: Filters are a greener alternative to bottled water, even with the current GST rate.

For businesses in the water purification sector:

  • Compliance Reminder: Update your invoicing to reflect the consolidated 18% rate for HSN 8421 products. Tools like ClearTax or myBillBook can streamline this.

  • Advocacy Opportunity: Join industry efforts through WQIA to push for a water filter GST update to 5%, which could boost sales and market reach.

Why the Water Filter GST Update Matters

India’s water quality challenges make affordable filtration systems a necessity, not a luxury. The 18% GST rate, unchanged in the latest water filter GST update, keeps these systems out of reach for many, especially in rural areas. A potential shift to 5% could:

  • Make water purifiers more affordable for low-income households.

  • Boost industry growth, creating jobs in manufacturing and distribution.

  • Support India’s Swachh Bharat and sustainability initiatives by reducing plastic waste.

What’s Next for Water Filter GST Rates?

The GST Council is expected to meet again soon, and the water filter GST update could be on the agenda if public and industry pressure mounts. With growing awareness of water-related health issues, there’s hope for a tax cut in 2026. For now, consumers and businesses must navigate the 18% rate.

Pro Tip: If you’re buying a water filter, compare prices online and check for EMI options to ease the tax burden. Businesses should leverage digital platforms to educate consumers about the long-term value of purifiers despite the GST.

Final Thoughts

The water filter GST update hasn’t delivered the relief many hoped for, leaving water filters at 18% GST. While the industry’s push for a 5% rate continues, consumers and businesses must plan around the current structure. Clean water is non-negotiable, and a future tax cut could make it accessible to millions more.

What’s your take on the water filter GST update? Should water purifiers be taxed as essentials at 5%? Share your thoughts below!

Sources: GST Council announcements, CBIC guidelines, WQIA reports, and articles from Economic Times, The Hindu, and TaxGuru.



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