GST rates and HSN code for Transformer.
| Chapter | Description | HSN Code | Rate (%) | CESS (%) | Effective Date | Rate Revision |
|---|---|---|---|---|---|---|
| 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 | Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors – Other Inductors: Other | 85045090 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – |
| Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors – Other Transformers: Having A Power Handling Capacity Exceeding 1 Kva But Not Exceeding 16 Kva | 85043200 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – | |
| 8504 Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors -Ballasts For Discharge Lamps Or Tubes: Other | 85041090 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – | |
| Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors -Static Converters: Battery Chargers | 85044030 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – | |
| Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors – Other Inductors: -Parts : Of Transformers | 85049010 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – | |
| Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors -Static Converters: Electric Inverter | 85044010 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – | |
| Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors – Other Transformers: Having A Power Handling Capacity Not Exceeding 1 Kva | 85043100 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – | |
| Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors -Static Converters: Voltage Regulator And Stabilizers (Other Than Automatic) | 85044040 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – | |
| Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors – Other Transformers: Having A Power Handling Capacity Exceeding 16 Kva But Not Exceeding 500 Kva | 85043300 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – | |
| 8504 Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors -Ballasts For Discharge Lamps Or Tubes: Conventional Type | 85041010 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – | |
| Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors – Liquid Dielectric Transformers: – Having A Power Handling Capacity Exceeding 10,000 Kva: Having A Power Handling Capacity Exceeding 10,000 Kva But Not Exceeding 50,000 Kv | 85042310 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – | |
| Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors – Liquid Dielectric Transformers: – Having A Power Handling Capacity Exceeding 10,000 Kva: Having A Power Handling Capacity Exceeding 2,50,000 Kva | 85042340 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – | |
| Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors -Static Converters: Other | 85044090 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – | |
| 8504 Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors -Ballasts For Discharge Lamps Or Tubes: For Compact Fluorescent Lamps | 85041020 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – | |
| Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors – Liquid Dielectric Transformers: – Having A Power Handling Capacity Exceeding 10,000 Kva: Having A Power Handling Capacity Exceeding 50,000 Kva But Not Exceeding 1,00,000 | 85042320 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – | |
| Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors – Other Transformers: Having A Power Handling Capacity Exceeding 500 Kva | 85043400 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – | |
| Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors – Other Inductors: Choke Coils (Chokes) | 85045010 | 18% | – | 01/08/2019 15/11/2017 1/07/2017 | – | |
| Services | General 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. | 995423 | 1.5/5/7.5/12/18 | Nil 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 | – |
| Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | Other Cutting Oil, Hydraulic Oil, Industrial White Oil, Jute Batching Oil, Mineral Oil For Cosmetic Industry, Transformer Oil Conforming To Any Other Bis Standard | 27101988 | 18% | – | 01/07/2017 | – |
| Insulating Oil For Transformer And Circuit Breaker (Transformer And Circuit Breaker Oils) Conforming To Standard Is 335 Or Is 12463 | 27101985 | 18% | – | 01/07/2017 | – |
Transformers are indispensable components in our electrical infrastructure, facilitating the efficient transmission and distribution of power. For manufacturers, distributors, and service providers dealing with transformers and related products, understanding the correct Harmonized System of Nomenclature (HSN) codes and their corresponding Goods and Services Tax (GST) rates is crucial for accurate classification and compliance. Let’s delve into the various HSN classifications related to transformers.
The core classification for electrical transformers falls under HSN 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.”
Within this chapter, HSN code 8504 specifically covers “Electrical Transformers, Static Converters (For Example, Rectifiers) And Inductors.” This broad heading includes various types of transformers based on their power handling capacity and specific function. All of these generally attract an 18% GST rate, with an effective date of August 1, 2019 (following earlier dates of November 15, 2017, and July 1, 2017).
Specific sub-categories for transformers and related equipment include:
Transformers often require specialized insulating oil for their operation. This oil has its own HSN classification under Chapter 27: “Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes.”
Both these HSN codes for transformer oil attract an 18% GST rate, effective from July 1, 2017.
The main HSN code for electrical transformers is 8504.
Electrical transformers generally have an 18% GST rate.
Parts of transformers are typically covered by HSN 85049010.
Transformer insulating oil also has an 18% GST rate.
The current GST rates for most electrical transformers became effective on August 1, 2019, with earlier revisions.
No, services related to transformer stations (HSN 995423) have varying GST rates (e.g., 1.5%, 5%, 12%, 18%) depending on specific conditions.
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