Solar Panel HSN Code + Inverter & Structure Codes (2026)

The HSN code for solar panels is 8541, and an assembled PV module is classified at 8541 43 00. GST on solar modules is 5% from 22 September 2025; it was 12% before that date. Almost everything else on a solar invoice is a different story, which is why one rooftop bill can carry four different tax lines.

If you raise GST invoices for solar projects, this page is the lookup table. It covers the codes, the rates, what changed on 22 September 2025, and how to lay out an invoice so the codes and rates agree. For the whole-system view see our guide to GST on solar systems in India.

Solar HSN codes and GST rates at a glance

All rates below apply from 22 September 2025 and come from Notification 9/2025 (Integrated Tax and Central Tax, Rate) dated 17 September 2025. "Alone" means the item is sold as a separate supply. "In a works contract" means one supplier supplies the goods and the installation together and the 70:30 rule below applies.

Item	HSN or SAC	GST when sold alone	In a works contract	Note
Solar PV module	8541 43 00	5%	Goods leg at 5%	Entry 437(h), Schedule I
Solar cell (not assembled)	8541 42 00	5%	Goods leg at 5%	Entry 437(h), Schedule I
Solar inverter, PCU	8504 40	18% on the plain reading; 5% arguable	Goods leg at 5%	Not named in entry 437. Read the inverter guide
Lithium or lead-acid battery	8507	18%	CA question	Entry 480, Schedule II
Mounting structure (steel, GI)	7308	18%	Goods leg at 5% if inside the deemed 70% (CA question)	Entry 286
Aluminium structure	7610	18%	CA question	Entry 339
DC cable	8544	18%	CA question	Entry 516
MC4 connector, switchgear, DCDB	8536	18%	CA question	Entry 508
Solar charge controller	8504	18%	CA question	Static converter
Solar lantern or lamp	Entry 437(f)	5%	n/a	Named in Schedule I
Solar water heater and system	8419 12	5%	n/a	Entry 428, Schedule I
Solar cooker	7321 or 8516	5%	n/a	Entry 415, Schedule I
Installation service	SAC heading 9954 (995461 is commonly used)	18%	30% service leg at 18%	See the SAC code guide
AMC and O&M	SAC heading 9987 (998719 is commonly used)	18%	Separate agreement	See AMC pricing

The "CA question" cells are not settled in the notification text. Whether a battery, cable or structure supplied inside the same contract is swept into the deemed 70% goods value is a matter for your tax adviser, so we do not state it either way.

What changed on 22 September 2025

The 56th GST Council meeting on 3 September 2025 cut the rate on renewable energy devices from 12% to 5%. The change was notified on 17 September 2025 and took effect on 22 September 2025. The PIB release from the Ministry of New and Renewable Energy puts the saving on a typical 3 kW rooftop system at about ₹9,000 to ₹10,500. The Council's own FAQ (PIB, Q50) says the rate on renewable energy equipment that was at 12% "has been reduced to 5%".

	Before 22 Sep 2025	From 22 Sep 2025
Solar modules and cells	12%	5%
Complete system with installation (70:30)	13.8% effective	8.9% effective
Standalone battery, cable, structure	18%	18% (lead-acid batteries were 28% earlier and are now 18%)
Installation service	18%	18%

The 13.8% and 8.9% figures are our own arithmetic on the notified split: 0.7 x 12% + 0.3 x 18% = 13.8%, and 0.7 x 5% + 0.3 x 18% = 8.9%.

Schedule I entry 437 covers solar power-based devices, the solar power generator, solar lanterns and lamps, and "photo voltaic cells, whether or not assembled in modules or made up into panels". The notification is on the CBIC GST rates page.

HSN code for solar panels: 8541 43 00 for modules

Solar modules sit in heading 8541 (semiconductor devices, including photosensitive semiconductor devices and photovoltaic cells). Since the HS 2022 structure took effect on 1 January 2022, the Indian tariff splits photovoltaic goods like this:

• 8541 42 00: photovoltaic cells not assembled in modules or made up into panels.
• 8541 43 00: photovoltaic cells assembled in modules or made up into panels, which is what an installer calls a solar panel.

Before 2022, India used 8541 40 11 and 8541 40 12. Those lines are gone. The Directorate General of Trade Remedies confirms the change in its final findings of 29 September 2025, where the goods "were classified under tariff items 85414011 and 85414012" until the end of 2021 and under 85414200 and 85414300 from 1 January 2022. CBIC's Customs Notification 45/2025 of 24 October 2025 uses the same split: "photovoltaic cells falling under tariff item 8541 42 00 or photovoltaic modules falling under 8541 43 00".

Many guides online still print 8541 40 11 or 8541 42 00 for modules. Neither is right for an assembled module today. The type of cell (mono PERC, TOPCon, bifacial, thin film) does not change the module code, and the brand does not either: a query like "Waaree panel HSN code" has the same answer as any other module.

How many digits must the invoice show?

Under Notification 78/2020-Central Tax, as amended, a business with aggregate turnover up to ₹5 crore shows 4 digits on B2B invoices and a business above ₹5 crore shows 6. Most solar suppliers can print 8541 43 on the line and the full 8-digit tariff code where they have it. Confirm the digit rule for your turnover with your CA.

Complete system or separate components: the 70:30 rule

When one supplier sells a solar system and installs it under one contract, the notification does not ask you to price each component. The Explanation under entry 437 says that where the entry-437 goods are supplied with other goods and services, and one of those services is the construction, engineering, installation or technical service at serial 38 of Notification 11/2017 (headings 9954, 9983 or 9987), then:

• the value of the goods is deemed to be 70% of the gross consideration, taxed at 5%; and
• the remaining 30% is deemed to be the value of the service, taxed at 18%.

Effective rate: 0.7 x 5% + 0.3 x 18% = 8.9%. The rule works the same for a home and a factory. Notification 15/2025 (Central Tax, Rate) rewrote the Explanation to serial 38 so the two entries read together.

For a worked example on a full contract, including a pre-22 September comparison, see GST on solar systems in India. For the service side, see GST on solar installation services.

Inverters and PCUs: the rate is not automatic

Inverters are classified in heading 8504 (static converters). Schedule II of the new notification lists 8504 at 18% (entry 477). Entry 437 does not name inverters, and the notification moves EV chargers in the same heading into the 5% schedule by name (entry 438) without doing the same for solar inverters. So an inverter reaches 5% when it forms part of a complete solar power generating system supply, including the 70:30 case. Sold on its own, 18% is the conservative reading and 5% is arguable. We found no CBIC circular that settles the point. The full treatment, with a worked example, is in GST rate on solar inverters.

Batteries: 8507 at 18%

Lithium-ion and lead-acid batteries both sit in heading 8507, which appears once in the new schedules at 18% (entry 480). The old 28% slab for lead-acid is gone. On a ₹80,000 5 kWh lithium bank, GST is ₹14,400 at 18%. A battery supplied inside a complete system may be argued under the 70:30 rule, and that is an open question for your CA. Billing a battery on its own line at 18% is the safe default. For prices, see solar battery price in India.

Mounting structures, GI structures and BOS hardware

Fabricated steel and GI mounting structures are normally classified at 7308 (structures), entry 286 in Schedule II at 18%. Aluminium structures go to 7610 (entry 339, 18%). Some suppliers use 7326 (other articles of iron or steel, entry 305) or 7616 for loose parts. All of them are 18% when sold alone. Bolts, nuts and brackets billed as loose hardware usually fall under 7318. Keep structures on their own line rather than folding them into a "solar system" line, or the auditor may apply one rate to the whole bundle.

Cables, MC4 connectors, junction boxes and charge controllers

Item	Heading	GST when sold alone
DC solar cable	8544	18%
MC4 connector, DCDB, ACDB, switchgear	8536	18%
Junction box (plastic enclosure)	3926 or 8537, by description	18%, CA to confirm the heading
Solar charge controller	8504	18%

We give headings, not 8-digit sub-codes, for the last two rows because sub-codes depend on the exact product. Check the data sheet with your CA before printing a long code. For cable and BOS terms see the glossary on balance of system and the solar charge controller.

Solar lights, water heaters and other solar-labelled goods

Solar lanterns and solar lamps are named in entry 437(f), so they are 5%. Solar cookers (entry 415) and solar water heaters and systems at 8419 12 (entry 428) are also in Schedule I at 5%. Ordinary luminaires in heading 9405 are generally 18% (entry 614). A solar street light with an integral panel, battery and LED fitting is a classification question: the word "solar" on the label does not by itself decide the heading, so classify by function and ask your CA for products like solar cameras or street lights.

ALMM, DCR modules and GST

ALMM status and domestic content do not change the GST rate or the HSN code. A DCR module and a non-DCR module are both 8541 43 00 at 5%. What ALMM changes is subsidy eligibility under PM Surya Ghar, so check the model against the live MNRE list before you buy in bulk. Our ALMM list guide covers how to read it, and import duty on solar modules covers the customs side.

SAC codes for installation and AMC

Installation is a service, so it takes a SAC, not an HSN. Serial 38 of Notification 11/2017 names headings 9954 (construction services), 9983 (other professional, technical and business services) and 9987 (maintenance, repair and installation services except construction). On the official SAC list, 995461 is electrical installation services under installation services at 99546, and it is the code most solar installers print. AMC and O&M sit in 9987; 998719 is the code for other machinery and equipment. Do not use 998714 for solar AMC: it is maintenance of transport machinery. The service rate is 18%. Details are in SAC code for solar installation.

Input tax credit and the inverted duty refund

A GST-registered business buying a solar system for its own taxable use can generally claim input tax credit, subject to the conditions in the CGST Act. A household cannot, because it is not registered. Credit on immovable property is restricted by section 17(5), so a CA should look at how a plant fixed to a building is treated.

For the supplier there is a separate issue. When an EPC pays 18% on inputs such as batteries or structures and charges 5% or a blended 8.9% on output, tax credit can pile up. The GST Council's FAQ (PIB, Q51) says these goods "already faced inverted duty structure", that the cut to 5% deepens it, and that "mechanism for refund arising out of inverted duty structure is available" with process reforms to speed it up. How to claim that refund is a question for your CA.

For accelerated depreciation on the same plant, see accelerated depreciation on solar.

Sample invoice: 3 kW hybrid system, components billed separately

This example uses ₹2,22,000 of goods before tax and bills each component on its own line. It is the arithmetic only. It is not a statement of how your contract must be invoiced.

Line	Value	Rate	GST
Solar modules (8541 43 00)	₹90,000	5%	₹4,500
Hybrid inverter (8504 40)	₹40,000	5% inside a system, or 18%	₹2,000 or ₹7,200
5 kWh lithium battery (8507)	₹80,000	18%	₹14,400
Mounting structure (7308)	₹12,000	18%	₹2,160
Total	₹2,22,000		₹23,060 or ₹28,260

Invoice total is ₹2,45,060 with the inverter at 5%, or ₹2,50,260 with it at 18%. Under the old 12% module rate, with the inverter also at 12%, the same basket carried ₹32,160, which is why many online guides still show a larger number. If you add installation under one contract, the 70:30 rule governs instead and you should model it as a contract.

Six checks before you send a solar invoice

1. Module line shows 8541 43 and 5%. Anything printing 12% is out of date.
2. Battery, cable and structure lines carry their own heading and 18%.
3. Inverter treatment is a deliberate choice, written on the quote: part of the system supply, or a standalone item.
4. Installation is a service line with a SAC, or the contract is invoiced under the 70:30 split. Do not mix the two on one invoice.
5. HSN digits match your turnover band.
6. Proposal and invoice agree. If the quote says 5% on everything and the invoice splits 5% and 18%, the customer will call.

Keeping the right HSN and GST on every proposal

The rate tables above are only useful if the quote carries them. QuickEstimate's quotation system applies GST at 5% for solar goods and builds the BOM, labour and PM Surya Ghar subsidy lines in one place, and the proposal generator shows a GST breakdown on the PDF you send. See pricing for plans. Your CA still decides how a mixed contract is invoiced.

Related reading: import duty on solar modules, the ALMM list explained, and the HSN code and GST glossary entries.

Sources

• PIB, Ministry of New and Renewable Energy: GST on renewable energy devices rationalised to 5%
• PIB: FAQs on the decisions of the 56th GST Council (Q50 and Q51)
• CBIC: Notification 9/2025 Integrated Tax (Rate), Schedule I entry 437 and Schedule II entries 286, 339, 477, 480, 508, 516
• DGTR final findings, 29 September 2025, on the tariff items for solar cells and modules
• CBIC Customs Notification 45/2025, S.No. 240

Frequently asked questions

What is the HSN code for solar panels in India?

Solar panels sit under heading 8541. An assembled photovoltaic module is classified at 8541 43 00 and an unassembled photovoltaic cell at 8541 42 00, under the HS 2022 structure in force since 1 January 2022. Older guides quote 8541 40 11, which was a pre-2022 line.

What is the GST rate on solar panels now?

5% from 22 September 2025 (2.5% CGST plus 2.5% SGST, or 5% IGST), down from 12%. The rate comes from Schedule I, entry 437, of Notification 9/2025, which lists photovoltaic cells whether or not assembled in modules or made up into panels.

What GST applies to a complete rooftop system with installation?

When one supplier provides the goods and the installation service together, 70% of the gross value is deemed goods taxed at 5% and 30% is deemed service taxed at 18%. That is an effective rate of 8.9%. Confirm the invoice presentation with your CA.

Which solar components are still taxed at 18%?

When sold separately, batteries (heading 8507, lithium and lead-acid), structures (7308 or 7610), cables (8544), connectors and switchgear (8536) and charge controllers (8504) are in Schedule II at 18%. How they are treated inside a single works contract is a question for your CA.

What is the GST on solar inverters?

There is no single answer. Heading 8504 is in Schedule II at 18%, and inverters are not named in the 5% entry. An inverter supplied as part of a complete solar power generating system, including the 70:30 case, gets the 5% goods treatment. Sold alone, 18% is the conservative reading.

What are the HSN code and GST rate for solar mounting structures and GI structures?

Fabricated steel and GI structures are normally classified at 7308 and aluminium structures at 7610. Both are 18% when sold alone. Some suppliers use 7326 or 7616 for loose parts.

What are the HSN and GST for solar lights, water heaters and cookers?

Solar lanterns and lamps, solar cookers and solar water heaters are listed in Schedule I at 5%. Other lighting in heading 9405 is generally 18%, so a solar street light needs to be classified by its function and checked with a CA.

Can a homeowner claim input tax credit on the GST paid for solar?

Generally no, because a household is not GST-registered. A GST-registered business that uses the system for taxable supplies may claim credit subject to the conditions of the CGST Act, including section 17(5). Confirm with a CA.

How many HSN digits must a solar invoice show?

Under Notification 78/2020-Central Tax, as amended, a business with turnover up to 5 crore rupees shows 4 digits on B2B invoices and a business above that shows 6 digits. Confirm the rule for your turnover with your CA.