Power Inverter HSN Code

GST rates and HSN code for Power Inverter.

ChapterDescriptionHSN CodeRate (%)CESS (%)Effective DateRate Revision
Vehicles other than railway or tramway rolling-stock, and parts and accessories thereofOther Vehicles, With Both Compression-Ignition Internal Combustion Piston Engine (Diesel Or Semi-Diesel) And Electric Motor As Motors For Propulsion, Other Than Those Capable Of Being Charged By Plugging To External Source Of Electric Power87035028%Nil/17%/20%/22%01/08/2019 25/01/2018 1/07/2017
Other Vehicles, With Both Compression-Ignition Internal Combustion Piston Engine (Diesel Or Semi-Diesel) And Electric Motor As Motors For Propulsion, Capable Of Being Charged By Plugging To External Source Of Electric Power87037028%Nil/15%/17%/20%/22%01/08/2019 25/01/2018 1/07/2017
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereofPower Driven Pumps Primarily Designed For Handling Water, Namely, Centrifugal Pumps (Horizontal And Vertical), Deep Tube-Well Turbine Pumps, Submersible Pumps, Axial Flow And Mixed Flow Vertical Pumps8413omitted01/07/2017
Of A Power Exceeding 5,000 Kw84118218%15/11/2017 1/07/2017
Fixed Speed Diesel Engines Of Power Not Exceeding 15Hp840812%01/07/2017
Other Engines And Motors Parts: Of Other Steam Engines And Other Vapour Power Units Not Incorporating Boilers8412902018%01/07/2017
Hydraulic Turbines, Water Wheels, And Regulators Therefor – Of A Power Exceeding 10,000 Kw: Of Power Exceeding 80,000 Kw8410139018%01/07/2017
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articlesElectrical Transformers, Static Converters (For Example, Rectifiers) And Inductors – Other Transformers: Having A Power Handling Capacity Exceeding 1 Kva But Not Exceeding 16 Kva8504320018%01/08/2019 15/11/2017 1/07/2017
Electrical Resistors (Including Rheostats And Potentiometers), Other Than Heating Resistors – Other Fixed Resistors: – For A Power Handling Capacity Not Exceeding 20 W: – Of Insulated Wire : Other8533212918%01/07/2017
Electrical Resistors (Including Rheostats And Potentiometers), Other Than Heating Resistors – Other Fixed Resistors: – For A Power Handling Capacity Not Exceeding 20 W: – Of Bare Wire : Of Nichrome8533211118%01/07/2017
Reception Apparatus For Radio-Broadcasting, Whether Or Not Combined, In The Same Housing, With Sound Recording Or Reproducing Apparatus Or A Clock – Radio Receivers Not Capable Of Operating Without An External Source Of Power, Of A Kind Used In Motor Vehi8527210018%15/11/2017
Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metalInterchangeable Tools For Hand Tools, Whether Or Not Power– Operated, Or For Machine- Tools (For Example, For Pressing, Stamping, Punching, Tapping, Threading, Drilling, Boring, Broaching, Milling, Turning Or Screw Driving), Including Dies For Drawing Or8207409018%01/07/2017
Interchangeable Tools For Hand Tools, Whether Or Not Power– Operated, Or For Machine- Tools (For Example, For Pressing, Stamping, Punching, Tapping, Threading, Drilling, Boring, Broaching, Milling, Turning Or Screw Driving), Including Dies For Drawing Or8207190018%01/07/2017
Interchangeable Tools For Hand Tools, Whether Or Not Power– Operated, Or For Machine- Tools (For Example, For Pressing, Stamping, Punching, Tapping, Threading, Drilling, Boring, Broaching, Milling, Turning Or Screw Driving), Including Dies For Drawing Or8207401018%01/07/2017
Interchangeable Tools For Hand Tools, Whether Or Not Power– Operated, Or For Machine- Tools (For Example, For Pressing, Stamping, Punching, Tapping, Threading, Drilling, Boring, Broaching, Milling, Turning Or Screw Driving), Including Dies For Drawing Or8207500018%01/07/2017
Interchangeable Tools For Hand Tools, Whether Or Not Power– Operated, Or For Machine- Tools (For Example, For Pressing, Stamping, Punching, Tapping, Threading, Drilling, Boring, Broaching, Milling, Turning Or Screw Driving), Including Dies For Drawing Or8207130018%01/07/2017
Interchangeable Tools For Hand Tools, Whether Or Not Power– Operated, Or For Machine- Tools (For Example, For Pressing, Stamping, Punching, Tapping, Threading, Drilling, Boring, Broaching, Milling, Turning Or Screw Driving), Including Dies For Drawing Or8207901018%01/07/2017
Interchangeable Tools For Hand Tools, Whether Or Not Power– Operated, Or For Machine- Tools (For Example, For Pressing, Stamping, Punching, Tapping, Threading, Drilling, Boring, Broaching, Milling, Turning Or Screw Driving), Including Dies For Drawing Or8207709018%01/07/2017
Project imports; laboratory chemicals; passengers’ baggage, personal importations by air or post; ship storesFor Power Project9801001318%01/07/2017
ServicesGeneral Construction Services Of Long-Distance Underground/Overland/Submarine Pipelines, Communication And Electric Power Lines (Cables); Pumping Stations And Related Works; Transformer Stations And Related Works.9954231.5/5/7.5/12/18Nil Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. Provided that credit of input tax charged on goods and services has not been taken [Please refer to Explanation no. (iv)]. Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be. Provided that carpet area of the affordable residential apartments as specified in the entry in column (3) relating to this item, is not less than 50 per cent. of the total carpet area of all the apartments in the project; Provided also that for the purpose of determining whether the apartments at the time of supply of the service are affordable residential apartments covered by sub- clause (a) of clause (xvi) of paragraph 4 below or not, value of the apartments shall be the value of similar apartments booked nearest to the date of signing of the contract for supply of the service specified in the entry in column (3) relating to this item; Provided also that in case it finally turns out that the carpet area of the affordable residential apartments booked or sold before or after completion, for which gross amount actually charged was forty five lakhs rupees or less and the actual carpet area was within the limits prescribed in sub- clause (a) of clause (xvi) of paragraph 4 below, was less than 50 per cent. of the total carpet area of all the apartments in the project, the recipient of the service, that is, the promoter shall be liable to pay such amount of tax on reverse charge basis as is equal to the difference between the tax payable on the service at the applicable rate but for the rate prescribed herein and the tax actually paid at the rate prescribed herein; Provided that the central tax at the rate specified in column (4) shall be paid in cash, that is, by debiting the electronic cash ledger only; Provided also that credit of input tax charged on goods and services used in supplying the service hasnot been taken except to the extent as prescribed in Annexure I in the case of REP other than RREP and in Annexure II in the case of RREP; Provided also that the registered person shall pay, by debit in the electronic credit ledger or electronic cash ledger, an amount equivalent to the input tax credit attributable to construction in a project, time of supply of which is on or after 1st April, 2019, which shall be calculated in the manner as prescribed in the Annexure I in the case of REP other than RREP and in Annexure II in the case of RREP; Provided also that where a registered person (landowner- promoter) who transfers development right or FSI (including additional FSI) to a promoter (developer- promoter) against consideration, wholly or partly, in the form of construction of apartments,- (i) the developer- promoter shall pay tax on supply of construction of apartments to the landowner- promoter, and (ii) such landowner – promoter shall be eligible for credit of taxes charged from him by the developer promoter towards the supply of construction of apartments by developer- promoter to him, provided the landowner- promoter further supplies such apartments to his buyers before issuance of completion certificate or first occupation, whichever is earlier, and pays tax on the same which is not less than the amount of tax charged from him on construction of such apartments by the developer- promoter. Explanation. – (i) “developer- promoter” is a promoter who constructs or converts a building into apartments or develops a plot for sale, (ii) “landowner- promoter” is a promoter who transfers the land or development rights or FSI to a developer- promoter for construction of apartments and receives constructed apartments against such transferred rights and sells such apartments to his buyers independently. Provided also that eighty percent of value of input and input services, [other than services by way of grant of development rights, long term lease of land (against upfront payment in the form of premium, salami, development charges etc.) or FSI (including additional FSI), electricity, high speed diesel, motor spirit, natural gas], used in supplying the service shall be received from registered supplier only; Provided also that inputs and input services on which tax is paid on reverse charge basis shall be deemed to have been purchased from registered person; Provided also that where value of input and input services received from registered suppliers during the financial year (or part of the financial year till the date of issuance of completion certificate or first occupation of the project, whichever is earlier) falls short of the said threshold of 80 per cent., tax shall be paid by the promoter on value of input and input services comprising such shortfall at the rate of eighteen percent on reverse charge basis and all the provisions of the Central Goods and Services Tax Act, 2017 (12 of 2017) shall apply to him as if he is the person liable for paying the tax in relation to the supply of such goods or services or both; Provided also that notwithstanding anything contained herein above, where cement is received from an unregistered person, the promoter shall pay tax on supply of such cement at the applicable rates on reverse charge basis and all the provisions of the Central Goods and Services Tax Act, 2017 (12 of 2017), shall apply to him as if he is the person liable for paying the tax in relation to such supply of cement; (Please refer to the illustrations in annexure III) Explanation. – 1. The promoter shall maintain project wise account of inward supplies from registered and unregistered supplier and calculate tax payments on the shortfall at the end of the financial year and shall submit the same in the prescribed form electronically on the common portal by end of the quarter following the financial year. The tax liability on the shortfall of inward supplies from unregistered person so determined shall be added to his output tax liability in the month not later than the month of June following the end of the financial year. 2. Notwithstanding anything contained in Explanation 1 above, tax on cement received from unregistered person shall be paid in the month in which cement is received. 3. Input Tax Credit not availed shall be reported every month by reporting the same as ineligible credit in GSTR-3B [Row No. 4 (D)(2)]. Provided that in case of ongoing project, the registered person shall exercise one time option in the Form at Annexure IV to pay central tax on construction of apartments in a project at the rates as specified for item (ie) or (if), as the case may be, by the 20th of May, 2019; Provided also that where the option is not exercised in Form at annexure IV by the 20th of May, 2019, option to pay tax at the rates as applicable to item (i) or (ia) or (ib) or (ic) or (id) above, as the case may be, shall be deemed to have been exercised; Provided also that invoices for supply of the service can be issued during the period from 1st April 2019 to 20th May 2019 before exercising the option, but such invoices shall be in accordance with the option to be exercised.;01/04/2019 25/01/2018 13/10/2017 21/09/2017 22/08/2017

Understanding the Power Inverter HSN Code

A power inverter is a crucial device that converts DC (Direct Current) power from sources like batteries or solar panels into AC (Alternating Current) power, suitable for running household appliances and electronics. For businesses involved in manufacturing, importing, or selling power inverters, correctly identifying their HSN (Harmonized System of Nomenclature) code and the associated GST (Goods and Services Tax) rate is essential for seamless operations and tax compliance.

The provided data contains a mix of information, mostly related to “power” in a broader sense (e.g., power-driven pumps, engines of certain power, electrical resistors with power handling capacity, power project services, and vehicles with power propulsion). However, none of the directly listed HSN codes precisely describe a “Power Inverter.”

This means we need to look at the general classification principles of electrical machinery under HSN to identify the appropriate code for a power inverter.

The Correct HSN Code for Power Inverters

Power inverters are essentially static converters. They convert one form of electrical energy (DC) into another (AC) without any moving parts (unlike rotating converters). This places them squarely within:

  • Chapter 85: Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles.

More specifically, power inverters fall under:

  • HSN 8504: Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors.
    • Within this heading, “Static Converters” is the key term. Inverters are a type of static converter.
    • While the data mentions 85043200 (Other Transformers: Having A Power Handling Capacity Exceeding 1 Kva But Not Exceeding 16 Kva), this specific HSN is for transformers, not directly for inverters. However, the broader heading 8504 is the correct place.
    • The most common and appropriate HSN code for a general power inverter (which converts DC to AC) is:
      • 85044090: Static Converters – Other

The Applicable GST Rate

For power inverters falling under HSN 8504, the prevailing GST rate is 18%. This rate has been consistently applied to static converters and most electrical machinery under Chapter 85, effective from July 1, 2017. While some specific items within 8504 might have varying effective dates or revisions (as seen with 85043200), the 18% rate for static converters like inverters remains standard.

It is crucial for businesses to use the precise HSN code (85044090 for general power inverters) to ensure accurate tax computation and compliance. While the provided data touches on various power-related items, understanding the core function of a power inverter as a “static converter” leads directly to its correct classification.

FAQs

What is the primary HSN Chapter for power inverters?

The primary HSN Chapter for power inverters is Chapter 85, which covers “Electrical machinery and equipment.”

What is the specific HSN heading that covers power inverters?

Power inverters fall under HSN 8504, which includes “Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors.”

What is the most common HSN code for a general power inverter (DC to AC)?

The most common HSN code for a general power inverter is 85044090, which specifically covers “Static Converters – Other.”

What is the GST rate for power inverters?

The GST rate for power inverters is typically 18%.

Why is it important to use the correct HSN code for power inverters?

Using the correct HSN code is vital for accurate GST compliance, proper invoicing, and efficient customs clearance for imports and exports.

What kind of “power” related HSN codes were in the provided data that were NOT for inverters?

The provided data included HSN codes for things like power-driven pumps (8413), engines (8408), electrical resistors (8533), and certain vehicles with power propulsion (8703, 8704), none of which are power inverters.

Open Your Free Demat Account Now!

Step into a world of zero fees and limitless opportunities!

pocketful logo

2022-25 Pocketful. All rights reserved, Built with in India

Version -5.76

app image 1app image 2

Explore

Calculatorsfooter arrow down icon
Popular Calculatorsfooter arrow down icon
Group Stocksfooter arrow down icon

Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800