Generator HSN Code: Classification for Diesel and Portable Generators
Generators are used to produce electricity for homes, shops and industrial units when grid power is not available. Under GST, most generator sets, whether portable or fixed, are classified under HSN code 8502. This heading covers electric generating sets that run on diesel, petrol or other fuels and also includes sets that combine an engine with an alternator.
What is the HSN Code for Generators?
The general HSN heading for generator sets is 8502. Both portable generators used for small shops and large diesel generator sets used in factories normally fall under this heading. At the eight digit level, the code may change based on capacity and type of fuel, but at six digit level they remain grouped together.
How Are Portable and Diesel Generators Classified under HSN?
Portable generators, trolley mounted sets and fixed diesel generating sets are classified in the same broad HSN 8502 heading. The key difference is only in technical description, such as power output in kVA, whether the set is single phase or three phase and whether it is for standby or continuous duty. These technical details do not usually change the main heading used for GST returns.
The HSN Code for Standby Generators
Standby generator sets used for emergency power in hospitals, commercial buildings and housing complexes are also covered by HSN 8502. Even though their usage is different from portable units, they still perform the same basic function of generating electricity and therefore remain under the same HSN group.
GST on Generator Products
Most generator sets under HSN 8502 attract GST at 18%. This rate is applied on the transaction value of the generating set, excluding any separately charged freight or insurance if invoiced beyond the place of supply. Registered businesses can claim input tax credit on generator purchases if they are used in the course of business and credit is not specifically blocked.
HSN Code and GST Rate Table
| Product / Service | HSN Code | Product / Service Description | Typical GST Rate |
|---|---|---|---|
| Portable generator set | 8502 | Small capacity generator used for homes, shops and small offices. | 18% |
| Diesel generator set | 8502 | Medium or large capacity diesel powered generator used in industries and buildings. | 18% |
| Standby industrial generator | 8502 | Generator set used as standby power source for critical installations. | 18% |
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 portable generators?
Portable generator sets are normally classified under HSN 8502 along with other electric generating sets. The portability of the unit does not change the main heading used for GST reporting.
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Are diesel generators classified separately from other generators under HSN?
Diesel generators are not given a separate broad HSN heading. They are grouped under 8502 with other types of generating sets. Only the more detailed eight digit description may mention that the unit is diesel driven or of a particular capacity.
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How does GST apply to generator products?
Generator products under HSN 8502 generally attract 18% GST. The rate is applied on the ex factory or transaction value of the set. Buyers registered under GST can usually claim input tax credit on this tax, subject to normal conditions.
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Can standby and primary generators have different HSN codes?
Standby and primary generators usually share the same HSN heading because both perform the same function of generating electricity. The difference between standby and prime duty is more about usage pattern and does not normally change the HSN group.
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What factors determine the HSN classification for a generator?
The main factors are whether the product is an electric generating set, its power rating and the type of engine and alternator used. As long as it is a complete generating set, it will normally fall under 8502, with technical details only affecting the deeper level sub classification.