The solar panel hsn code is 8541 43 for photovoltaic modules, and GST on solar panels is 5% under the Schedule I entry for renewable energy devices and parts for their manufacture. The same entry covers solar power generators, solar lanterns and solar based devices, and solar water heaters and solar cookers have their own 5% entries.
Not everything in a solar project is 5%. Batteries, separate mounting structures and some inverters sold alone can be 18%, and EPC contracts follow a deemed 70:30 split. This page explains each part, the split and a solar installer's bill. Wires, switches and other electrical goods are reached from the electrical hub.
Solar panels: codes and GST rates
Item / HSN / GST- Solar PV modules and panels5%Photovoltaic cells assembled in modules
- Solar cells, not assembled5%PV cells
- Solar power generators and systems5%Renewable energy devices
- Solar inverters supplied as part of a solar system5%Parts for solar power devices
- Solar inverters sold alone18%Check the entry for your case
- Solar water heater and system5%Specific entry
- Solar lanterns and solar lamps5%Renewable devices entry
- Solar street lights5%Solar power based devices
- Solar cookers5%Specific entry
- Mounting structures sold separately18%Steel structures
- Batteries for solar storage18%Accumulators
Quick facts
HSN heading
8541: semiconductor devices including PV cellsGST rate
5% (2.5% CGST + 2.5% SGST)Entry
Schedule I, renewable energy devices and parts for their manufactureEPC contracts
70% of value as goods at 5%, 30% as services at 18%Digits to print
4 digits up to Rs 5 crore turnover, 6 aboveCommon wrong code
8501 (generators) for solar panels
Solar panel hsn code and gst rate table
| Product | HSN | GST |
|---|---|---|
| Solar PV module, mono or poly | 8541 43 | 5% |
| Solar cell | 8541 42 | 5% |
| Solar power generator, home solar system | 8541 or 8502 | 5% |
| Solar lantern, solar lamp | 9405 | 5% |
| Solar street light | 9405 | 5% |
| Solar water heater | 8419 12 | 5% |
| Solar cooker | 8516 | 5% |
| Solar pump (solar power based device) | 8413 | 5% |
| Solar inverter, as part of the system | 8504 40 | 5% |
| Lithium or lead acid battery | 8507 | 18% |
| Mounting structure sold alone | 7308 | 18% |
Gst on solar panels: the renewable energy entry
Schedule I lists renewable energy devices and parts for their manufacture at 5%: bio-gas plants, solar power based devices, solar power generators, wind mills and wind generators, waste to energy plants, solar lanterns and lamps, ocean energy devices, and photovoltaic cells whether or not made up into modules or panels. Since the entry is chapter wide (Chapters 84, 85 and 94), a part qualifies only if it is a part for manufacturing one of these devices or is itself one of them.
Solar inverter hsn code and gst rate
Solar inverters are static converters under 8504 40. Inside a complete solar power kit, many suppliers bill them at the 5% renewable devices rate. On their own, or as hybrid grid units, they may be billed at 18%. Read the entry closely and keep the system design with the bill. See inverters.
Solar installation hsn code and the 70:30 rule
When renewable energy devices are supplied along with works contract services under one contract, the entry deems 70% of the total value to be the supply of goods at 5% and 30% to be the service at 18%. On a turnkey rooftop project worth Rs 10,00,000, that means Rs 7,00,000 at 5% and Rs 3,00,000 at 18%.
Rooftop solar EPC bill: Total contract value Rs 4,00,000. Goods portion 70%: Rs 2,80,000 at 5%, GST Rs 14,000. Service portion 30%: Rs 1,20,000 at 18%, GST Rs 21,600. Total GST Rs 35,600.
Solar street light and solar water heater hsn code
Solar street lights with built in panels and batteries are solar power based devices, billed under 9405 at 5%. Solar water heaters and systems are 8419 12 at 5%. Ordinary LED street lights without the solar kit are 18%; see LED lights.
Solar structure and batteries
Steel or aluminium mounting structures sold separately are 7308 or 7610 at 18%. Structures supplied as part of a complete solar power device may be treated as part of that device. Batteries for storage are 8507 at 18%; see batteries.
Solar product rates depend on how the goods are supplied, and the renewable devices entry has conditions this summary cannot cover in full. Check the current entry on the GST portal and ask a GST practitioner or chartered accountant before pricing a solar project.
Frequently asked questions
How much GST applies to solar panels?
Solar PV modules and panels are taxed at 5%.
What is the solar panel hsn code?
Solar modules are 8541 43, and solar cells 8541 42.
What is the solar inverter gst rate?
Within a full solar kit, many suppliers bill 5%. Bought separately, an inverter may attract 18%; check the entry.
How is GST charged on a solar installation contract?
When devices are supplied with works contract services, 70% of the value is taxed at 5% and 30% at 18%.
What is the solar water heater hsn code?
Solar water heaters are 8419 12, at 5%.