GST for Electrical Items: Appliances and Wiring Products

What Falls Under Electrical Items?

Electrical items include a wide range of products used for power supply, lighting, installation, and household convenience. These are broadly categorized under  electrical goods and electronic appliances , with GST rates differing based on usage and type.

New GST on Electrical Items in India

Electrical items such as wires, switches, fans, air conditioners, and home appliances are widely used in residential, commercial, and industrial settings. The new gst on electrical items depends on the applicable HSN classification and product category.

Under the GST rationalisation effective from 22 September 2025, rates were revised for certain electrical and electronic products. Standard electrical items such as wires, switches, LED lamps and lighting fittings generally attract 18% GST, while specific product categories may have different rates based on their applicable GST classification.

The electric wire gst rate is generally 18% for insulated wires and cables classified under HSN 8544. The gst on wires and cables depends on the applicable product classification.

Key update: Most electrical items continue to attract 18% GST. Air conditioners were reduced from 28% to 18%, and non-lithium-ion batteries under HSN 8507 were also rationalised to 18% from the earlier 28% rate. Standard LED lamps, lights, and fixtures continue to attract 18% GST.

Input Tax Credit on Electrical Items

Businesses—especially those involved in real estate, manufacturing, or electrical retail—can claim  Input Tax Credit (ITC)  on electrical items used for business purposes.

ITC is applicable when:

• You’re registered under GST
• The items are used for business operations
• You have valid tax invoices from GST-registered suppliers

Note: ITC is not allowed if the items are for personal or non-commercial use.

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GST on Electrical Installations

If you’re offering electrical installation or maintenance services, GST applies based on the nature of the service and supply:

• Labour/service component – generally 18% GST
• Supply of electrical items – taxed according to the applicable HSN classification and GST rate

Where materials and installation are supplied together, GST treatment depends on the nature of the supply. If the arrangement qualifies as a works contract involving immovable property, it is treated as a supply of service and taxed according to the applicable works contract provisions.

For example, a business purchases 5 bundles of electrical wire at ₹500 per bundle. The gst on electric wire is 18% under the applicable classification.

Taxable value = 5 × ₹500 = ₹2,500

GST @18% = ₹2,500 × 18% = ₹450

Total invoice value = ₹2,500 + ₹450 = ₹2,950

By understanding gst for electrical items, buyers and sellers can ensure correct billing, avoid classification errors, and benefit from available tax credits. Whether you’re wiring a home or stocking up for a store, knowing the applicable GST slab helps you plan better.