GST on Batteries in India
Batteries attract 18% GST in India under HSN 8507. Since September 2025 this covers lead-acid car and inverter batteries too, which were previously taxed at 28%.
Working out the GST on batteries
Batteries are taxed at a flat 18% under heading 8507, and the calculator below uses that rate. The 5% you may have seen quoted belongs to complete renewable energy systems, not to a battery sold on its own. Multiply the taxable value by 18 percent to get the GST, then add it to the base price for the total.
- For an intra-state sale, the 18% splits into 9% CGST and 9% SGST.
- For an inter-state sale, a single 18% IGST applies instead.
- The calculator on this page is pre-set to the 18% rate and handles both cases.
A worked example
Suppose a battery order has a taxable value of ₹10,000 before tax. Applying 18% GST works out as follows.
One rate for every battery since September 2025
This category changed meaningfully and most rate lists have not caught up. Before 22 September 2025, lithium-ion batteries sat at 18% while lead-acid batteries, including car and inverter batteries, sat at 28%. GST 2.0 brought everything under heading 8507 to a uniform 18%. If you find a page telling you your car battery is 28%, it is out of date.
| Battery type | HSN | GST rate |
|---|---|---|
| Car / starter lead-acid battery | 8507 10 00 | 18% (was 28%) |
| Inverter / UPS lead-acid battery | 8507 20 00 | 18% (was 28%) |
| Lithium-ion battery (EV, laptop, phone) | 8507 60 00 | 18% (unchanged) |
| Battery charger / inverter unit | 8504 40 30 | 18% |
| Solar inverter within a renewable system | 8504 | 5% (conditional) |
The battery is not the inverter
This trips up dealers constantly. A battery is an electric accumulator under heading 8507. An inverter, UPS unit or battery charger is a static converter under heading 8504, a different product entirely. Both currently sit at 18%, so the total is often unaffected, but the codes are not interchangeable and using 8507 for an inverter unit is a classification error that can block credit. Keep separate HSN lines in your item master for the battery and the unit it powers.
Solar batteries and the 5% question
You will see claims that solar batteries attract 5%. Be careful. A battery sold as a battery under 8507 is 18%, full stop. Concessional treatment at 5% attaches to renewable energy devices and to solar power systems supplied as a complete package, not to a battery presented on its own. So a solar inverter supplied with modules and mounting structures as a system can qualify for 5%, while the same battery sold across the counter does not. If you are billing a solar project, the question is what you are actually supplying, and the answer decides the rate.
Claiming credit and moving stock
A registered business can claim ITC on batteries bought in the course of business, subject to the normal conditions. Note this is the general ITC rule rather than a battery-specific concession: the credit is not available where the battery is used for exempt supplies or for personal use. A battery dealer claims credit on purchases for resale in the usual way. An e-way bill is required for any consignment above ₹50,000, for both inter-state and intra-state movement, and battery consignments cross that threshold easily.
Batteries in an electric vehicle
The rate depends entirely on what is being supplied. An electric vehicle sold complete with its battery attracts the EV rate of 5%, because the vehicle is the supply. A replacement battery bought separately for that same vehicle is a battery under 8507 and attracts 18%. This gap matters for EV owners planning for battery replacement, and for anyone comparing the headline purchase rate against lifetime running costs. Battery swapping and battery-as-a-service arrangements are structured differently again, so the treatment follows the actual contract rather than the hardware.
Scrap batteries and reverse charge
Used lead-acid batteries have real scrap value and an active trade. A registered business buying battery scrap from an unregistered supplier can fall under reverse charge, accounting for the GST directly and claiming it back as credit where the scrap feeds a taxable output. Keep a distinct HSN line in your item master for scrap batteries rather than billing them under the same code as new stock.
Buying online and warranty claims
The 18% is identical online and in store, appearing as IGST on an inter-state order. A battery bought through a marketplace has tax collected at source under Section 52 against the seller's GSTIN. Keep the tax invoice rather than the order summary: battery warranties are typically date-and-invoice conditional, and the same document is what supports an ITC claim if you are registered. Fitting charges billed separately by a workshop are a service at 18%.
Frequently asked questions
All batteries under HSN 8507 attract 18% GST. Since 22 September 2025 this covers car, inverter, UPS, lithium-ion and lead-acid batteries alike. Previously lead-acid batteries were 28% while lithium-ion was 18%.
No. Lead-acid car and inverter batteries were reduced from 28% to 18% on 22 September 2025 when the rate under heading 8507 was unified. Many rate lists online still show the old 28% figure.
Lithium-ion batteries attract 18% under HSN 8507 60 00. This rate did not change in 2025; instead, other battery types were brought down to match it.
A battery sold as a battery under HSN 8507 attracts 18%. The 5% concession applies to renewable energy devices and complete solar power systems, not to a standalone battery. What matters is whether you are supplying a system or a component.
Yes, where the battery is bought in the course of business and the normal ITC conditions are met. Credit is not available if the battery is used for exempt supplies or for personal use.