Solar Inverter GST Rate & HSN Code in India (2026)

A solar inverter is classified under heading 8504 (static converters), at 6 digits 8504 40. There is no single GST rate for it. Since 22 September 2025 the 12% rate no longer exists, and the answer is 5% or 18% depending on how the inverter is supplied. This page shows the three cases, what the notification does and does not say, and the arithmetic on a real invoice.

For modules, batteries, structures and cables, see HSN codes and GST rates for every solar component. For the whole-system picture, see GST on solar systems in India.

Solar inverter GST rate: the cases

Scenario	Rate	Basis
Inverter inside one contract that supplies the solar system and installs it	Goods leg at 5% on the deemed 70%; effective 8.9% on the whole contract	Explanation under entry 437, Schedule I, Notification 9/2025
Complete solar power generating system supplied as goods	5%	Entry 437, "solar power-based devices" and "solar power generator"
Standalone inverter sold on its own	18% on the conservative reading; 5% arguable; not settled	Entry 477, Schedule II (heading 8504); inverters not named in entry 437
Plain UPS or home backup inverter, not a solar device	18%	Entry 477
Battery sold with a hybrid inverter	18% on its own line	Entry 480, heading 8507

The 12% rate that older articles print for inverters was the rate until 21 September 2025. It does not apply to supplies after that date.

What the notification says, and what it leaves out

The rate comes from Notification 9/2025 (Integrated Tax and Central Tax, Rate) dated 17 September 2025, in force from 22 September 2025. Three entries matter.

• Entry 437, Schedule I (5%) lists renewable energy devices and parts for their manufacture, including "(b) Solar power-based devices", "(c) Solar power generator" and "(h) Photo voltaic cells, whether or not assembled in modules or made up into panels". It applies to goods in chapters 84, 85 or 94. An inverter is not listed by name.
• Entry 438, Schedule I (5%) is "Charger or charging station for Electrically operated vehicles" in heading 8504. This shows the drafters moved a named 8504 product into the 5% schedule when they meant to. They did not do so for solar inverters.
• Entry 477, Schedule II (18%) is "Electrical transformers, static converters (for example, rectifiers) and inductors other than charger or charging station for Electrically operated vehicles". A solar inverter is a static converter, so on a plain reading it lands here.

The 5% route for an inverter therefore runs through the description: is it part of a "solar power generator" or a "solar power-based device", or is it supplied inside a contract where the 70:30 Explanation applies? That is why we cannot print one flat rate. What a buyer or supplier can do: describe the line accurately on the invoice, keep the data sheet and the contract showing the supply structure, and, if the amount justifies it, ask for an advance ruling under section 97 of the CGST Act, which binds only the applicant. A ruling such as the Apex Powers order of the UP Authority for Advance Ruling (2020) treated a panel, inverter, controller and battery as elements of one solar power generating system. It pre-dates the 2025 change and does not bind anyone else.

The notification is on the CBIC GST rates page. The Council's own explanation of the 12% to 5% cut is in the PIB FAQs on the 56th meeting.

HSN codes by inverter type

All the inverter types below sit in 8504 40. What changes is the rate question, not the code.

Inverter type	HSN	Typical supply	Rate question
String inverter (on-grid)	8504 40	Part of a rooftop system	5% inside the system supply; check if sold alone
Microinverter	8504 40	Part of a rooftop system	Same as string
Hybrid inverter	8504 40	System with battery	Inverter as above; battery 8507 at 18% on its own line
Central inverter (C&I, utility)	8504 40	EPC or equipment supply	Same classification question; larger sums
Off-grid inverter or PCU	8504 40	Standalone or bundled	Depends on supply
Plain UPS inverter	8504 40	Home backup	18%

For the sub-code on your invoice (the 8-digit tariff line), use the tariff or the IRP HSN master and your CA's advice. The number of digits you must print depends on turnover: 4 up to ₹5 crore for B2B and 6 above, under Notification 78/2020-Central Tax as amended. See also string inverter vs microinverter and the glossary entries for the string inverter and central inverter.

Hybrid inverters and the battery line

A hybrid inverter that includes a charge controller is still a static converter in heading 8504 40. The battery connected to it is a separate good in heading 8507 at 18% (entry 480), whether it is lithium or lead-acid. Keep the two on separate lines. Do not invoice a hybrid inverter under 8507 because it works with a battery. Whether a battery supplied in the same contract falls inside the deemed 70% goods value is not answered by the notification text, so treat it as a CA question.

Worked example: the same inverter at 5%, at 18% and in a works contract

A 5 kW string inverter priced at ₹28,000:

• At 5%: ₹1,400 of GST.
• At 18%: ₹5,040 of GST.

The difference on one residential unit is ₹3,640. On a 100 kW commercial project with ₹8 lakh of inverters it is larger: ₹40,000 at 5% against ₹1,44,000 at 18%, a swing of ₹1,04,000. That is the cost of the classification question, and the reason to settle the supply structure before the quote goes out, not after.

Here is the full 5 kW residential basket from our earlier example, with goods billed on separate lines:

Line	HSN	Value	Rate	GST
13 modules, 400 Wp	8541 43	₹1,88,500	5%	₹9,425
5 kW string inverter	8504 40	₹28,000	5% or 18%	₹1,400 or ₹5,040
Aluminium structure	7610	₹12,000	18%	₹2,160
AC and DC cables	8544	₹8,000	18%	₹1,440
Goods total		₹2,36,500		₹14,425 or ₹18,065

Add ₹20,000 for installation. Billed as a separate service at 18% it carries ₹3,600, which gives a total of ₹18,025 or ₹21,665. If the whole ₹2,56,500 is one contract to which the 70:30 Explanation applies, GST is ₹2,56,500 x 8.9% = ₹22,828.50, computed as 70% (₹1,79,550) at 5% plus 30% (₹76,950) at 18%. The two views give different numbers because modules are most of this basket. Which one applies to your contract, and how it must appear on the invoice, is for your CA to decide. The arithmetic here is ours, not an official illustration.

Rate history in one table

Period	GST on notified solar devices	Inverter note
Until 21 Sep 2025	12%	Commonly billed at 12% with panels
From 22 Sep 2025	5% (Schedule I, entry 437)	Heading 8504 is in Schedule II at 18%; 5% via the system or 70:30 route

Input tax credit: buyer, EPC and the inverted-duty angle

A registered business that buys an inverter for its own taxable use can generally claim input tax credit, subject to the conditions of the CGST Act and the section 17(5) block on some immovable property. A household buyer is not registered and cannot claim credit. Residential rooftop supply by an EPC is a taxable supply, so the customer being a home does not make the EPC's supply exempt.

The EPC's own position is more interesting. If you buy inputs at 18% and charge 5% on the goods leg, credit can accumulate. The Council's FAQ says the goods "already faced inverted duty structure", that cutting the rate to 5% deepens it, and that a refund mechanism for inverted duty is available. We do not describe how to claim it here. Ask your CA. For the related depreciation view see accelerated depreciation on solar.

Imported inverters

On import, IGST follows the same classification question as a domestic sale. Basic customs duty depends on the current Customs Tariff and notifications, which we have not reproduced. Check the tariff with your customs broker before you cost an import. For modules, see import duty on solar modules.

The Inverter Tax Clarity Framework: four questions before you invoice

1. Is it a static converter (8504) and not a battery (8507)? Inverters and UPS units are 8504. Batteries are 8507.
2. Is it a solar inverter or a plain UPS? A plain backup inverter is not a solar power-based device and is 18%.
3. Is it goods only, or goods plus installation under one contract? One contract points to the 70:30 split.
4. How is the line described on the invoice? The description should match the supply structure and the data sheet.

If any answer is unclear, write the assumption on the quote and take it to your CA. For price context on inverters, see solar inverter price in India and best solar inverters in India.

Common mistakes on inverter invoices

• Printing 12%. That rate ended on 21 September 2025.
• Invoicing a hybrid inverter at the battery rate because it "includes" a battery function, or the reverse.
• Calling an inverter a "solar system" on the invoice when the supply is only the inverter.
• Putting inverter, battery, structure and cables on one line at one rate.
• Using the module HSN on the inverter, or 8504 on the module.
• Quoting a rate to the customer that the invoice does not match.

If your officer disputes the classification

Keep the invoice description, the data sheet, the contract and the commissioning record together. Do not assume a past ruling from another state applies to you. An advance ruling under section 97 binds the applicant and the concerned officer. Your CA can advise whether it is worth the time on your volume.

Inverter GST on different project types

Residential rooftop, commercial and industrial rooftop, and ground-mount projects all follow the same logic. A supply-and-install contract for a solar plant is valued under the 70:30 Explanation whatever the customer. An equipment-only order for central inverters is a goods supply where the classification question applies. Government buyers pay GST on goods as any other buyer does; whether a particular government contract has a different treatment is a question for your CA.

Putting inverter GST into proposals

A quote that shows the GST basis protects your margin and avoids a customer call after the invoice. QuickEstimate's quotation system calculates GST at 5% for solar goods and builds the BOM in one place, and the proposal generator prints a GST breakdown. See pricing for plans. Check inverter and battery lines yourself against the rules above before you send.

Sources

• CBIC: Notification 9/2025 Integrated Tax (Rate), Schedule I entries 437 and 438 and Schedule II entries 477 and 480
• PIB: FAQs on the 56th GST Council (Q50, Q51)
• PIB, MNRE: GST on renewable energy devices rationalised to 5%
• GST Council: Apex Powers advance ruling (2020)

Frequently asked questions

What is the HSN code for a solar inverter?

Solar inverters are classified in heading 8504 (static converters), at 6 digits 8504 40, for string, micro, hybrid, central and off-grid types. The number of digits on the invoice depends on turnover: 4 digits up to 5 crore rupees for B2B and 6 above, under Notification 78/2020-Central Tax as amended.

What is the GST rate on a solar inverter in 2026?

There is no single rate. Heading 8504 is in Schedule II at 18% (entry 477). 5% applies when the inverter is part of a complete solar power generating system supply or sits inside a works contract under the 70:30 rule, which gives an effective 8.9% on the contract. The old 12% rate ended on 21 September 2025.

Is a standalone solar inverter taxed at 5% or 18%?

Entry 437, which sets the 5% rate for solar devices, does not name inverters. On the plain reading of the schedules 18% is the conservative position and 5% is arguable. We found no CBIC circular that settles it, so confirm with your CA, who can also advise on an advance ruling.

What GST applies to a hybrid inverter?

A hybrid inverter is a static converter in heading 8504 40 and follows the same rate question as any solar inverter. The battery is a separate good in heading 8507 at 18% and goes on its own invoice line.

Is a home UPS or inverter-battery unit taxed like a solar inverter?

No. A plain UPS or backup inverter is not a solar power-based device. It falls in heading 8504 at 18%, and its battery in heading 8507 is also 18%.

Can I claim input tax credit on the GST paid on an inverter?

A registered business making taxable supplies can generally claim credit subject to the conditions of the CGST Act. A household cannot. Residential rooftop supply by an EPC is taxable, so the residential customer does not create an exempt supply. Confirm the details with a CA.

Does importing an inverter change the GST?

IGST on import follows the same classification question as a domestic sale. Customs duty depends on the current Customs Tariff and notifications, so check the tariff with your customs broker.

What if my GST officer disputes my inverter classification?

Keep the invoice description, the data sheet and the contract showing the supply structure, and consider an advance ruling under section 97 of the CGST Act. A ruling binds only the applicant. The Apex Powers ruling of 2020 pre-dates the September 2025 rate change.

What changed for solar inverters on 22 September 2025?

Renewable energy devices moved from 12% to 5% under the GST Council's 56th meeting. Heading 8504 stayed in the 18% schedule, and inverters are not named in the 5% entry, so a standalone inverter is a classification question and not an automatic 5%.