GST on Battery: Applicability, Rate and HSN Code

GST is an indirect tax that is levied on the supply of goods and services at each stage of value addition. The supply of batteries also attracts GST. This article covers everything you need to know about GST on batteries, including the GST rate on car batteries, the GST rate on mobile batteries, the GST rate on laptop batteries, the input tax credit available, and exemptions.

Applicability of GST on battery

Applicability

The applicability of GST on batteries depends on the type of battery, place of supply of battery, and the use of the battery. At present, GST applies to most types of batteries, like lead-acid batteries, lithium-ion batteries, etc. The rate of GST depends on the use of the battery and the type of battery. 

E-way bills

To keep a check on tax evasion, the government has also made it compulsory to present e-way bills for the movement of goods within the country. Hence, if a consignment of batteries exceeds Rs.50,000 (in a single Invoice/bill/delivery challan), a taxpayer needs to generate an e-way bill to move the batteries within India. e-Way bills are required for both the inter-state and intra-state supply of batteries and can be generated online. 

Place of Supply

Place of supply means the place where the goods or services are delivered/ consumed. If a battery is sold within the same state, then the GST rate applicable would be the state GST (SGST) plus the central GST (CGST). If the battery is sold to a customer in a different state, then integrated GST (IGST) would be applicable. The type of GST levied on batteries depends on various factors, such as the location of the supplier, the location of the recipient, and the type of battery.

Invoicing

An invoice raised must include details of the GST registration number of the supplier and the recipient, the type and quantity of batteries, the value of the goods, and the applicable GST rate. The invoice must also contain the HSN (Harmonized System of Nomenclature) code for batteries.

GST Rate and HSN Code for Battery

Here is a table providing the GST rate and HSN code for batteries and cells in India:

The GST rates on batteries change from time to time. Therefore, battery manufacturers must always check and be updated with the latest GST rates applicable to batteries.

For quick and easy reference, you can try our GST rate and HSN code finder.

ITC Availability on Battery 

Input Tax Credit (ITC) is available on batteries in India, subject to certain conditions. Businesses can claim ITC on the GST paid on batteries purchased for use in their business operations. ITC cannot be claimed on batteries used for the manufacture of exempt goods or goods used for personal consumption.

Additionally, the batteries must be purchased from a GST-registered supplier and must be accompanied by a proper invoice with the GST registration number of the supplier. Here is the full list of conditions to be fulfilled to claim input tax credit on batteries.

FAQs 

1. How much GST is levied on inverter batteries in India? 

Answer: GST on inverter batteries is charged at 28% in India. The GST on UPS batteries (static convertors) is also 28%. 

2. What is the GST rate on laptop batteries and the GST rate on mobile batteries?

Answer: Lithium-ion batteries are typically used for laptops, personal computers, mobile phones, and tablets and attract a GST rate of 18%.

3. What is the GST rate on bike batteries and the GST rate on car batteries in India?

Answer: The GST rate on bike batteries and car batteries depends on the type of battery used. The GST rate on lithium-ion batteries is 18%, while other secondary batteries and electric accumulators attract a GST rate of 28%. 

4. Is an e-way bill required for the movement of batteries?

Answer: Yes, an e-way bill is required for the movement of batteries if the value of the consignment exceeds Rs. 50,000.

5. Can ITC be claimed on batteries used for exempt supplies?

Answer: No, ITC cannot be claimed on batteries used for exempt supplies.

6. Is GST applicable on the sale of batteries to end users?

Answer: Yes, GST is applicable on the sale of batteries to end-users at the rates in force.