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Batteries are used in a wide range of applications — from cars and bikes to inverters and UPS systems. If you’re in the business of buying, selling, or using batteries, it’s important to understand how the Goods and Services Tax (GST) applies to them. In this blog, we’ll explain the gst on battery and break down the tax rates for different types of batteries used in homes, vehicles, and offices.
The gst rate on battery varies depending on the type of battery and its usage. Here’s a breakdown of the common categories and their respective GST rates:
| Battery Type | GST Rate | Notes |
|---|---|---|
| Automotive (lead-acid) battery | 28% | Used in cars, bikes, trucks, etc. |
| Inverter battery (lead-acid) | 28% | Typically used at homes/offices |
| Lithium-ion battery | 18% | Used in smartphones, EVs, laptops |
| UPS battery | 28% | Backup for computers or servers |
| Solar battery | 5% | Only with a solar power system |
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Lithium-ion batteries, commonly used in smartphones, laptops, and electric vehicles, attract 18% GST.
These are considered energy-efficient and technologically advanced, hence taxed lower than traditional lead-acid batteries.
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| Battery Type | Use Case | GST Rate |
|---|---|---|
| Lead-acid car battery | Automobiles | 28% |
| Lead-acid inverter battery | Home/office power backup | 28% |
| UPS battery | Computer/server backup | 28% |
| Lithium-ion battery | Smartphones, EVs, gadgets | 18% |
| Solar battery (with solar panel) | Renewable energy use | 5% |
Knowing the GST slab for your battery helps businesses claim Input Tax Credit and manage compliance efficiently.
The gst on battery depends on the type of battery and its intended use. While inverter and vehicle batteries fall under the higher 28% slab, lithium-ion and solar-integrated batteries are taxed at lower rates.
Whether you’re a business dealing in batteries or a household buying one for backup, knowing the right GST rate helps with budgeting and staying GST-compliant.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.