Inverter HSN Code for GST Filing
Inverters are widely used in homes, offices, shops and factories to provide backup power during electricity cuts. Many businesses now also use solar inverters along with solar panels to reduce electricity bills and support clean energy.
To use the inverter HSN code correctly and apply the right GST rate, traders, dealers and installers need to understand how different inverters are classified and how GST generally applies under the current three slab structure of 5%, 18% and 40%.
What Are the HSN Codes for Different Types of Inverters?
Under GST, inverters are usually treated as electrical static converters. These products are placed in the electrical machinery chapter where the heading covers equipment that converts one form of electrical energy to another, such as direct current to alternating current.
The same broad HSN family is generally used for normal home inverters, high capacity industrial inverters and many solar inverters that form part of a power system. The detailed description of the product and its main function decides the exact classification.
Key Inverter HSN Codes and GST Rates after 22 September 2025
| HSN Code | Product Description | Product Type or Variant | GST Rate |
|---|---|---|---|
| 8504 | Power inverters | Home and office inverters and inverter based uninterruptible power supplies | 18% |
| 8504 | Solar inverters | Grid tied, hybrid and off grid inverters used in solar power systems | 5% |
| 8504 | Solar power units | Integrated solar power systems supplied as a single unit with inverter and control equipment | 5% |
How to Classify Solar and Luminous Inverters for GST?
For normal backup inverters used with batteries and mains supply, classification usually follows the electrical static converter family. These inverters are treated as general electrical equipment and most models fall in the standard rate slab unless covered by a specific concession.
Solar inverters used as part of a solar power generating system are often treated as renewable energy devices. When supplied along with solar modules and other parts as a complete system, they normally qualify for the lower slab that applies to renewable energy devices.
In practice, the description on the tax invoice and purchase order should make it clear whether the supply is a simple inverter, a stand alone solar inverter or a full solar power system. The same HSN family can cover all three, but the applicable GST rate can differ depending on whether the device is treated as a renewable energy device.
What GST Rate is Applied to Inverters and Solar Systems?
With the move to the three slab GST structure from 22 September 2025, most standard electrical goods fall in the 18% slab. Power inverters used as general backup devices are therefore normally taxed at 18% as standard electrical equipment.
Solar power devices and renewable energy equipment are generally placed in the 5% slab. Solar inverters and solar power systems that meet the conditions for renewable energy devices can often qualify for 5%, especially when supplied as part of a complete solar power package.
The GST rate may vary depending on specific notifications and conditions, such as whether the inverter is supplied alone or along with solar modules and mounting structures. Businesses should match the product description, use and government notifications before fixing the rate in their item master.
How to Ensure Accurate HSN Code for Inverters in GST Returns?
The first step is to identify the type of inverter. A simple backup inverter for domestic use, an industrial static converter and a solar inverter for a rooftop system can all appear under the same HSN family but may face different tax treatment. Clear item descriptions help avoid confusion.
Next, businesses should decide whether the inverter is being sold as a stand alone electrical product or as part of a renewable energy system. This decision affects the applicable GST rate even when the HSN family remains the same.
Once the correct HSN family and GST rate have been selected, these details should be saved in the item master of the accounting software. Every invoice for inverters and solar systems should then show the same HSN code and GST rate so that outward supplies are reported correctly in GSTR one and other returns.
If there is doubt about the correct rate or classification for a complex inverter or combined power system, it is safer to use neutral wording and refer to the latest notifications rather than guessing. This approach reduces the risk of interest, penalties and disputes during audits.
Conclusion
Inverter HSN codes usually place backup inverters, industrial static converters and solar inverters in the same electrical machinery family, while the GST rate depends on whether the product is treated as standard electrical equipment or as a renewable energy device.
By identifying the type of inverter, checking whether it forms part of a solar power system, mapping it to the correct HSN family and applying the right GST slab of 5% or 18%, businesses can raise accurate invoices, support proper input tax credit and keep their GST compliance simple and safe.
I am a Chartered Accountant with 5 years of experience specializing in GST, income tax, and HSN code classification. I help businesses with GST compliance, tax planning, and financial advisory, ensuring they meet regulatory requirements while optimizing their tax strategies. I aim to simplify GST filings, income tax laws, and HSN code classifications, helping professionals and business owners stay informed and compliant.
Frequently Asked Questions
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What is the HSN code for inverters?
Inverters are generally classified in the electrical machinery chapter under the heading for static converters. This family covers power inverters used in homes, offices and industrial applications.
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How does the GST rate vary for solar inverters and home inverters?
Home and office inverters used as general backup devices commonly fall in the 18% slab, while solar inverters supplied as part of renewable energy systems can qualify for the lower 5% slab when they meet the notified conditions.
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Are inverters classified under a single HSN code or different codes?
Most inverters, including backup inverters and solar inverters, appear in the same broad HSN family for static converters. Within that family, the exact description and use of the product guides how it is treated for GST purposes.
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What is the HSN code for solar powered inverters?
Solar powered inverters that convert direct current from solar panels into alternating current for use in homes and businesses are usually classified in the same static converter family as other inverters, but they may be treated as renewable energy devices for GST rate purposes.
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How do I apply the inverter HSN code for GST returns?
Set the correct HSN family and GST rate for each inverter product in your item master and use these details on every invoice. Your accounting software can then generate HSN wise summaries so that outward supplies of inverters and solar systems are reported correctly in GST returns.