GST on Batteries: Auto, Inverter, and More
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.
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What is the GST Rate on Batteries?
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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GST on Automotive Batteries
- Battery GST rate for car or bike batteries is 28%.
- Includes lead-acid batteries used in petrol or diesel vehicles.
- Same rate applies to batteries used in trucks, buses, or tractors.
GST on Inverter and UPS Batteries
- The gst on inverter battery is also 28%, whether for home or commercial use.
- UPS batteries also attract 28% GST as they fall under power backup devices.
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GST on Lithium-ion Batteries
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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GST on Solar Batteries
- If a battery is sold along with a solar panel system, the package may be taxed at 5%.
- If sold separately, it may attract 28% GST unless it qualifies as an essential solar component.
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Summary Table: GST Rates for Battery Types
| 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.
Conclusion
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.
Jagdish Prasad is a Chartered Accountant with over 5 years of experience. He helps people and businesses with GST, income tax, and HSN codes. Jagdish makes sure his clients follow all tax rules and save money the right way. He also enjoys writing simple articles to help others understand taxes and stay updated with the latest rules.
Frequently Asked Questions (FAQs)
- What is the GST on car batteries?The GST rate for car batteries is 28%, categorized under electronic goods.
- Is there a lower GST for inverter batteries?No, inverter batteries are also taxed at a standard rate of 28%, regardless of brand or capacity.
- Why is lithium-ion battery taxed at 18%?Lithium-ion batteries attract 18% GST due to their classification as modern, energy-efficient technology.
- What is the GST on solar batteries?If bundled with a solar panel system, the GST can be as low as 5%. However, standalone battery purchases typically attract higher GST (18–28%).
- Can businesses claim input tax credit on batteries?Yes. If the battery is used for business operations and the buyer is GST-registered, they can claim input tax credit (ITC).
