What is the GST Rate on Home Inverters in India?

As of the latest updates, the Goods and Services Tax (GST) rate on home inverters in India is generally 18%. However, like many tax laws, the GST rate can change, and specific exemptions or reductions may apply based on product type or other criteria. It is advisable to check the latest notifications from the Goods and Services Tax Council (GST Council) or consult a tax professional for the most current information.

Recent Changes in GST Rates

As of now, the GST rate on home inverters has been reduced to 12% as of April 1, 2019. In specific scenarios, there can be no GST on houses under Affordable Housing Schemes.

The notification 1/2017-CT rate has detailed entries related to Harmonized System (HSN) code 8504, in which UPS (Uninterruptible Power Supply) and inverters fall under the 18% tax slab. The relevant section states:

Electrical transformers, static converters (for example, rectifiers and inductors) – taxable @ 18%

It is important to note that batteries attached to inverters or Uninterruptible Power Supplies (UPS) are subject to a higher GST rate of 28%. Hence, one must differentiate between the GST rates on the inverters themselves and the additional components.

Revised GST Slab for Inverters

With effect from July 1, 2017, inverters have been reclassified under the 18% GST slab. This inclusive change ensures a standardized tax rate for both regular and solar inverters. The decision aims to provide clearer tax guidelines and ensure compatibility with the broader GST framework.

To reiterate, the GST rate on home inverters is 18%, while the GST rate on batteries attached to inverters or UPS is 28%. Solar inverters also fall under the same 18% GST slab.

General Information on GST in India

The Goods and Services Tax (GST) in India is a comprehensive, multi-stage, destination-based tax that replaces multiple indirect taxes. The GST Council, comprising finance ministers from states and the central government, oversees the GST in India.

While the general GST rate for home inverters is 18%, it is crucial to stay updated with the GST Council's latest notifications as the tax structure can evolve. For the most accurate and up-to-date information, it is advisable to either monitor the official GST Council website or consult a certified tax professional.

Summary

In summary, the GST rate on home inverters as of now is 12% with a lower rate of 5% for houses under Affordable Housing Schemes. However, the general GST rate for home inverters and solar inverters remains at 18%, with a higher rate of 28% applicable to batteries attached to inverters or UPS. For the latest and most accurate information, always refer to official sources and consult a tax professional.