Solar HSN Code

A Guide to Solar HSN Codes and GST

The solar energy sector is a cornerstone of India’s renewable energy ambitions, driving innovation in panels, water heaters, and various solar-powered gadgets. For businesses operating in this dynamic industry, understanding the correct HSN (Harmonized System of Nomenclature) codes and the applicable Goods and Services Tax (GST) rates is crucial for compliance and smooth operations.

Let’s break down the HSN codes and GST rates for key solar products based on the provided data.

The Solar HSN Codes

Solar products are primarily classified under chapters related to electrical machinery and equipment, and mechanical appliances.

1. Solar Cells and Panels (Chapter 85: Electrical machinery and equipment…)

• 85414012: This HSN code specifically covers “Solar Cells, Assembled In Modules Or Made Up Into Panels.” This is the core classification for photovoltaic (PV) solar panels.
  • This item is subject to an 18% GST rate, effective from July 1, 2017.

2. Solar Water Heaters (Chapter 84: Nuclear reactors, boilers, machinery…)

• 84191200: This HSN code is dedicated to “Solar Water Heaters.” These systems utilize solar energy to heat water for domestic or industrial use.
  • Solar Water Heaters under this HSN code are subject to an 18% GST rate.

3. Solar Collectors (Chapter 76: Aluminium and articles thereof)

• 76151012: This code refers to “Solar Collectors.” These are components of solar water heating or concentrated solar power systems that absorb sunlight. The HSN places them under aluminum articles, indicating they are likely primarily made of aluminum.
  • Solar Collectors under this HSN are also subject to an 18% GST rate, with an effective date of November 15, 2017 (originally July 1, 2017).

4. Other Solar Energy-Based Equipment/Gadgets (Chapter 85: Electrical machinery and equipment…)

• 85437092: This HSN covers “Equipment Gadgets Based On Solar Energy” under “Electrical Machines And Apparatus Having Individual Functions, Not Specified Or Included Elsewhere In This Chapter – Other Machines And Apparatus — Other —-.”
• 85438992: Similar to the above, this code is for “Equipment Or Gadgets Based On Solar Energy” under “Electrical Machines And Apparatus Having Individual Functions… – Other Machines And Apparatus: – Other: – Other.” This acts as a more general or residual category for solar-powered devices.
  • Both these HSN codes for general solar equipment/gadgets are subject to an 18% GST rate, effective from July 1, 2017.

Understanding the GST Rates for Solar Products

Based on the provided data, a consistent GST rate applies to most solar components and equipment:

• 18% GST: Applies to:
  • Solar Cells, Assembled In Modules Or Made Up Into Panels (85414012)
  • Solar Water Heaters (84191200)
  • Solar Collectors (76151012)
  • Various “Equipment Gadgets Based On Solar Energy” (85437092, 85438992)

It’s important to note that while the data indicates 18% for these items, some broader government notifications and subsequent changes in GST rates for renewable energy devices have occurred. While the given data shows 18% as the rate, in practice, many solar power-based devices and systems (specifically goods falling under Chapters 84, 85, or 94) have seen their GST rate rationalized to 12% in later revisions (e.g., effective from October 1, 2021). Therefore, always refer to the latest official GST notifications for the most up-to-date rates.