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GST Rates and HSN Codes for Rooftop Solar

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This May we had published a preliminary guide on expected GST rates for the rooftop solar industry. Now that the dust has settled, the final rates are clear. Below information serves as a ready reference for the GST rates applicable along with relevant HSN codes for the solar industry in India:

Item HSN/SAC Code GST Rate Applicable
Battery 8507 28
Solar Module 8541 5
Charge Controller 8504 28
LED Lights 9405 12
Solar Lantern with Modules 85 (4/6 digit code awaited) 5
Solar Power Generating Systems 85 (4/6 digit code awaited) 5
Solar Inverter 8504 28*
Data Loggers 8517 18
GI Mounting Structure 7308 18
Al Mounting Structure 7610 18
Cables 8544 18
Solar Water Heater & System 8419 5
Erection, Installation & Comissioning Services 9954 18

*The GST rate applicable on solar inverters is still under debate with some vendors invoicing at 5% GST and others at 28%.

In addition to this, the rates applicable on the various components required in the assembly of solar panels are below:

Item HSN Code GST Rate Applicable
Tempered Glass 7007 28
EVA Backsheets 3921 18
Aluminium Frame 7604 18
Junction Box 8536 28
Solar Cells 8541 5
Solar PV Ribbon 7409 18

Hope this quick reference is helpful, do drop a comment in case you have more inputs. From all of us as Sunkalp Energy, good luck with the transition to the new tax regime!

17 thoughts on “GST Rates and HSN Codes for Rooftop Solar

    1. Dear Sujith, Thanks for the comment. There is an exception provided under code 85 for solar power generating devices to be taxed at 5%.

      1. Hi

        I am vivek from bangalore I wanted to know battery is 28 % , panel is 5% , structure is 18 % and inverter is again 18 % for one lakh approximately if we procure the material , the taxes which we have paid would be some where around 16000 Rs .
        where as we collect 5% from the customer if we bill at 1,20,000 the tax amount given by the customer would be 6000 Rs then what can be done of 10,000 tax we need to absorb ? or we need to claim back from the government ,pls explain this is worrying a lot no body even in commercial tax also they are telling go to google and lastly let me know what is the hsn code for the same .

      2. Hi
        I developed solar based battery charging with led driver so what hsn code I need to use ? I try to purchase from internet solar charge controller they are applying 5 % GST . If 5%gst then what is HSN CODE

  1. Please provide HSN code for Solar VFD panel: This control panel converts ‘DC voltage generated from Photovoltaic cells’ to ‘AC voltage’ by means of VFD (Variable Frequency Drive); the DC voltage is connected directly to DC bus of VFD, and VFD converts it to AC voltage; further can be used to drive 3 phase AC motor.

  2. Any idea at what rate to bill a Solar Security Fencing project? We commissioned 700mtrs of a 12 line Solar fence with battery, energiser and charge controller. I would prefer billing the bundle not individual components as the list is very long and each on a different rate if this is legal?

    No luck with having that confirmed yet..

  3. What rate and HSN Code to Bill for Solar Street Light System comprising LED Lamp,MPPT charge controller, Module, Tubular Battery with MS Steel Pole, Clamp, Bracket, wiring including Supply and Erection.

  4. what will be the hsn code for solar power plant on grid tie(panel,pcu,structure) and off grid (panel,pcu, battery,structure)system?and what gst % will be apply?

  5. Dear Sir,
    Can i know the HSN codes and applicable GST Tariff for the following items of Solar items:-
    1. 9 Watt or 12 Watt Solar Lamp/Light.
    2. Installation Labour Charges for Solar Lights on 3 Mtr MS Pole.

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