New GST on Batteries: Auto, Inverter, and More
Quick Summary
- The GST rate for automotive, inverter, lithium-ion, and UPS batteries in India is now 18%.
- Solar batteries have a lower GST rate of 5% when sold with a solar power system.
- Previously, lead-acid car and inverter batteries had a GST rate of 28%.
- Lithium-ion batteries are taxed at 18% due to their energy-efficient technology.
- Businesses can claim Input Tax Credit on batteries used for business operations if they are GST-registered.
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 battery HSN code and GST rate for different types of batteries used in homes, vehicles, and offices.
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New GST Rate on Batteries in India
From 22 Sep 2025, all batteries under heading 8507 are uniformly taxed at 18% GST. Earlier, lithium-ion batteries were already at 18%, while other batteries such as many lead-acid batteries, were at 28%.
GST Rate on Batteries in India
| Battery Type | New GST Rate (After 22 Sep 2025) |
Old GST Rate (Before 22 Sep 2025) |
|---|---|---|
| Automotive battery, including lead-acid car and bike battery | 18% | 28% |
| Inverter battery, including lead-acid battery | 18% | 28% |
| UPS battery | 18% | 28% in many ordinary battery cases |
| Lithium-ion battery | 18% | 18% |
| Solar battery sold as a battery under heading 8507 | 18% | 28% or 18% depending on earlier battery type |
| Generic external rechargeable battery | 18% | 28% for non-lithium battery types |
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(After 22 Sep 2025) 18%
(Before 22 Sep 2025) 28%
(After 22 Sep 2025) 18%
(Before 22 Sep 2025) 28%
(After 22 Sep 2025) 18%
(Before 22 Sep 2025) 28% in many ordinary battery cases
(After 22 Sep 2025) 18%
(Before 22 Sep 2025) 18%
(After 22 Sep 2025) 18%
(Before 22 Sep 2025) 28% or 18% depending on earlier battery type
(After 22 Sep 2025) 18%
(Before 22 Sep 2025) 28% for non-lithium battery types
GST on Automotive Batteries
Under the revised rate structure from 22 Sep 2025, automotive batteries are now generally 18% GST. This includes common rechargeable batteries used in cars, bikes, trucks, and similar vehicles when classified under 8507.
GST on Inverter and UPS Batteries
Under the updated regime, batteries under 8507 are now 18% GST. A separate point to remember is that an inverter or UPS unit itself may be classified differently from the battery, but the battery now follows the uniform 18% rate.
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GST on Lithium-ion Batteries
Lithium-ion batteries continue to attract 18% GST. In other words, lithium-ion batteries did not get a rate cut in 2025. The larger change was that other batteries were brought down and aligned to the same 18% level.
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GST on Solar Batteries
A battery sold as a battery under 8507 should generally be treated at 18% GST. A solar project can still involve concessional treatment at the renewable-energy system or project level, but a battery sold as a battery under 8507 should not be presented as a general 5% goods entry.
Summary Table: GST Rates for Battery Types
| Battery Type | Use Case | GST Rate |
|---|---|---|
| Lead-acid car battery | Automobiles | 18% |
| Lead-acid inverter battery | Home/office power backup | 18% |
| UPS battery | Computer/server backup | 18% |
| 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.
How to Calculate GST on Batteries
GST on batteries is calculated on the taxable value of the battery and the applicable GST rate. Under the current rate structure, the usual rate for batteries under 8507 is 18%.
GST Amount = Taxable Value × 18%
Final Invoice Value = Taxable Value + GST Amount
Example 1: Automotive battery
Suppose a car battery has a taxable value of Rs 10,000.
GST = 10,000 × 18% = Rs 1,800
Final Invoice Value = Rs 11,800
Example 2: Inverter battery
Suppose an inverter battery has a taxable value of Rs 15,000.
GST = 15,000 × 18% = Rs 2,700
Final Invoice Value = Rs 17,700
Example 3: Lithium-ion battery
Suppose a lithium-ion battery has a taxable value of Rs 20,000.
GST = 20,000 × 18% = Rs 3,600
Final Invoice Value = Rs 23,600
Input Tax Credit on Batteries
Businesses can generally claim Input Tax Credit on batteries used in the course or furtherance of business, subject to the normal GST conditions and restrictions. So the article’s ITC direction is broadly right, but it should be written more carefully as a general GST rule, not as a batteries-only concession.
Conclusion
The gst on battery depends on the type of battery and its intended use. While inverter and vehicle batteries fall under the higher 18% 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 .
