Electricity HSN Code

Understand the Electricity HSN Code

When we talk about “Electricity HSN Code,” it’s vital to clarify what exactly we’re referring to. Unlike tangible goods, electricity as a commodity itself is treated differently under GST (Goods and Services Tax) in India. The HSN (Harmonized System of Nomenclature) system, which primarily classifies goods, does have a specific code for electrical energy. However, for services related to electricity, India uses SAC (Services Accounting Code) codes.

The key takeaway is this: the supply of electricity itself is largely exempt from GST in India. However, various services related to electricity, such as transmission, distribution, and construction of infrastructure, are subject to GST and thus have specific SAC codes.

Let’s break down the HSN/SAC codes related to “Electricity” based on the provided data.

HSN for Electrical Energy (The Commodity)

While the provided data focuses more on services, external information confirms that Electrical Energy as a product has a specific HSN code:

• 27160000 (Nil GST): This HSN code is for “Electrical Energy.” As per various GST notifications, the supply of electricity is exempt from GST. This means that direct electricity bills to consumers generally do not include GST. This classification falls under Chapter 27: Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes.

SAC Codes for Electricity-Related Services

For services pertaining to electricity, the SAC codes come into play. These are generally under Chapter 99.

Electricity Meters and Parts

Chapter 90 covers “Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof.”

• 9028 (18% GST): This broad category includes “Gas, Liquid Or Electricity Supply Or Production Meters, Including Calibrating Meters Therefor.”
• 902830 (18% GST): This specifically covers “Electricity Meters.”
• 90283010 (18% GST): This is for “Electricity Meters: For Alternating Current.”
• 90283090 (18% GST): This is for “Electricity Meters: Other.”
• 90289010 (18% GST): This covers “Parts And Accessories : For Electricity Meters.”
• 90289090 (18% GST): This is a general “Parts And Accessories : Other” for these types of meters.
• 90281000 (18% GST): This is for “Gas Meters.”
• 90282000 (18% GST): This is for “Liquid Meters.”

These items, being measuring instruments and their parts, are subject to an 18% GST rate.

Electrical Control and Distribution Apparatus

Chapter 85 covers “Electrical machinery and equipment and parts thereof.”

• 8537 (18% GST): This broad code is for “Boards, Panels, Consoles, Desks, Cabinets And Other Bases, Equipped With Two Or More Apparatus Of Heading 8535 Or 8536, For Electric Control Or The Distribution Of Electricity.”
• 85371000 (18% GST): This is for control or distribution boards for a voltage not exceeding 1,000 V.
• 85372000 (18% GST): This is for control or distribution boards for a voltage exceeding 1,000 V.

These critical components for managing electricity distribution are also subject to an 18% GST rate.

Electricity-Powered Locomotives and Coaches

Chapter 86 deals with “Railway or tramway locomotives, rolling-stock and parts thereof.”

• 8601 (18% GST): This general code covers “Rail Locomotives Powered From An External Source Of Electricity Or By Electric Accumulators.”
• 86011000 (18% GST): This is for “Rail Locomotives Powered From An External Source Of Electricity.”
• 86012000 (18% GST): This covers “Rail Locomotives Powered… By Electric Accumulators.”
• 86031000 (18% GST): This is for “Self-Propelled Railway Or Tramway Coaches, Vans And Trucks… Powered From An External Source Of Electricity.”

These specific types of railway equipment, leveraging electricity for propulsion, also attract an 18% GST rate.

Electricity-Related Services (SAC Codes)

Here, the data provides SAC codes, which classify services.

• 998631 (Nil GST): “Support Services To Electricity Transmission And Distribution.” This suggests that even support services for transmission and distribution are exempt, often with specific conditions as mentioned in the data (e.g., related to FIFA U-17 Women’s World Cup 2020 for certain dates).
• 996911 (Nil GST): “Electricity Transmission Services.” This is a key service related to electricity, and it is exempt from GST.
• 996912 (18% GST): “Electricity Distribution Services.” This is particularly interesting. While the supply of electricity itself is exempt, the service of distributing electricity by entities other than an electricity transmission or distribution utility might be taxable. However, typically, the services by government-owned or regulated distribution utilities are exempt. The provided data indicates 18% with a NIL cess, but other official sources confirm that transmission and distribution by an electricity transmission or distribution utility are typically NIL. This suggests a nuance depending on the service provider.
• 9969 (18% GST): This is a broader category for “Electricity, Gas, Water And Other Distribution Services.” This would cover general distribution services, including electricity, and is shown with an 18% GST rate.
• 995424 (Variable GST Rates – 1.5%/5%/7.5%/12%/18%): “General Construction Services Of Local Water & Sewage Pipelines, Electricity And Communication Cables & Related Works.” This code covers construction services involving electricity infrastructure, with varying GST rates depending on the nature of the construction (e.g., affordable housing projects, government projects, etc.) and specific conditions.