What is the GST rate on electrical items in India?

The GST rate on most electrical items in India is 18% under the standard GST slab. Products such as wires, switches, fans, motors, and electrical appliances generally attract this rate. However, some products like LED bulbs and lamps may attract 5% GST depending on their classification and applicable HSN code.

Which electrical items come under 18% GST?

Most electrical items come under the 18% GST rate, including cables, switches, sockets, motors, transformers, and household appliances. Businesses must identify the correct HSN code before applying GST on invoices. The applicable rate depends on the product category, technical specifications, and classification under GST rules.

What is the GST rate for LED lights and bulbs?

LED lights and bulbs attract 5% GST under the revised GST structure applicable from September

Earlier, these products had a higher GST rate. Businesses selling LED lighting products must use the correct HSN code to ensure accurate billing and proper GST compliance. 4. How can businesses find the HSN code for electrical items?

Businesses can find the HSN code for electrical items by checking their product category under GST classification. Different electrical products have separate HSN codes based on their use and features. Correct HSN selection helps businesses prepare invoices accurately and claim eligible input tax credit without unnecessary issues.

What is the HSN code for electrical wires and cables?

The HSN code for insulated electrical wires and cables is generally 8544 under GST classification. These products usually attract 18% GST according to current tax rules. Businesses should verify product details before selecting the HSN code because specific variations may have different classifications.

Can businesses claim GST input tax credit on electrical items?

Businesses can claim GST input tax credit on electrical items purchased for eligible business purposes. They must purchase from registered suppliers and maintain valid tax invoices. However, businesses cannot claim credit for personal use items or certain construction-related purchases restricted under GST provisions.

Is GST applicable on electrical scrap sales?

GST applies to electrical scrap sales, and the applicable rate depends on the type and classification of scrap. Items like old wires and motors generally attract GST based on their HSN classification, while e-waste, including discarded computers and electronic equipment, attracts 5% GST. Businesses must check the applicable HSN codes and follow GST rules related to reverse charge requirements wherever applicable.

What is the GST rate on electrical installation services?

Electrical installation services generally attract 18% GST under service classification rules. Services such as wiring, repair, and installation work are taxed separately from electrical materials. Businesses providing these services must issue proper invoices showing applicable GST details for materials and service components.

Do electrical appliances attract 18% GST in India?

Many electrical appliances attract 18% GST after the recent GST rate changes. Products, including refrigerators, air conditioners, and washing machines, fall under this category. Businesses must apply the correct GST rate based on the product’s HSN code and maintain accurate records for tax compliance.

What GST rate applies to electrical switches and sockets?

Electrical switches and sockets generally attract 18% GST under HSN classification

These products include switching devices, connectors, and similar electrical components. Sellers must mention the correct HSN code on invoices to ensure proper tax calculation and avoid compliance problems during GST verification. 11. Does GST apply to electrical items used for business purposes?

GST applies to electrical items purchased for business operations, and eligible businesses can claim an input tax credit. Items such as wiring, equipment, and electrical components may qualify when used for business activities. Businesses must follow GST conditions and maintain proper purchase invoices for claiming credit.

How does GST calculation work on electrical items?

GST calculation on electrical items depends on the taxable value and applicable GST rate. Businesses calculate GST by multiplying the product price by the relevant tax percentage. For example, an item worth ₹1,000 with 18% GST will include ₹180 as the GST amount in the final invoice.

What GST rate applies to electric motors and generators?

Electric motors and generators generally attract 18% GST under the HSN code 8501 classification. These products are widely used in industrial and commercial applications. Businesses should confirm the exact product category before invoicing because different electrical equipment may have separate HSN codes and tax rates.

Are electrical items covered under the GST compensation cess?

Electrical items generally do not attract any GST compensation cess under current tax rules. Businesses only need to charge the applicable GST rate based on the product classification. Correct HSN code selection helps sellers apply accurate tax rates and maintain proper GST records.

Why is selecting the correct HSN code important for electrical items?

Selecting the correct HSN code is important because it determines the applicable GST rate for electrical items. Accurate classification helps businesses create correct invoices, claim input tax credit, and maintain compliance. Incorrect HSN details may create tax calculation errors and cause problems during GST assessments.

Is there one HSN code for all electrical items?

No, there is no single HSN code for all electrical items. Different electrical products have separate HSN codes based on their type, features, and usage. For example, wires and cables fall under HSN 8544, switches and sockets fall under HSN 8536, and transformers fall under HSN

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GST Taxation

GST for Electrical Items in India: Rates & HSN Codes

Sidharth Ravichandran

Updated:Jul 9, 2026

10 min read

GST for electrical items in India is primarily 18%, covering products such as wires, cables, switches, fans, motors, and most electrical appliances. However, LED lights and bulbs attract a lower 5% GST under the revised GST structure introduced in September 2025.

Since different electrical products fall under separate HSN codes, businesses must identify the correct HSN code and applicable GST rate before issuing invoices. Correct classification also helps businesses comply with GST requirements and claim eligible Input Tax Credit (ITC) without unnecessary compliance issues.

This guide covers GST rates on electrical items, HSN codes, the latest GST reforms, input tax credit, scrap sales, and installation services applicable in 2026.

What is the GST Rate on Electrical Items?

The table below provides an overview of the GST rates applicable to common electrical items after the September 2025 GST reforms:

Category	GST Rate
Most electrical goods (wires, switches, fans, motors, appliances)	18%
LED lights and bulbs	5%
Electrical scrap	18%

No compensation cess applies to electrical items, so these rates are the total GST you pay. The exact rate depends on the item’s HSN classification.

Tip: Always verify the correct HSN code before issuing an invoice, as the applicable GST rate depends on the product’s HSN classification.

HSN Codes and GST Rates for Electrical Items

Electrical items fall under different HSN chapters based on their type and use. Most electrical products are classified under Chapter 85, while lighting fittings and luminaires are classified under Chapter 94.

The table below lists the HSN codes and applicable GST rates for commonly used electrical items:

Electrical Item	HSN Code	GST Rate
Insulated wires and cables	8544	18%
Switches, sockets, and fuses	8536	18%
Distribution boards and control panels	8537	18%
Electric fans (ceiling, table, exhaust)	8414	18%
Electric motors and generators	8501	18%
Transformers and static converters (UPS)	8504	18%
LED lamps and bulbs	8539	5%
LED luminaires and lighting fittings	9405	5%
Electric water heaters, irons, hair dryers	8516	18%
Air conditioners	8415	18%
Refrigerators	8418	18%
Washing machines	8450	18%
Electrical insulators	8546	18%

Note: Confirm the exact HSN code for your product using RegisterKaro’s HSN code finder or the official GST portal before issuing an invoice. Using the correct HSN code helps you apply the applicable GST rate correctly and reduces the risk of invoicing or GST compliance errors.

New GST Rates on Electrical Items After the September 2025 Reform

The September 2025 GST reforms, introduced under GST 2.0, simplified the rate structure and revised GST rates for several electrical items. The major changes affected appliances and lighting products:

Appliances reduced from 28% to 18%: Air conditioners, refrigerators, washing machines, and large televisions moved to the 18% slab, reducing the overall tax burden.
LED lights reduced to 5%: LED bulbs and lamps, previously taxed at 12%, were shifted to the lower 5% slab to encourage energy-efficient lighting.
Most items remain at 18%: Wires, switches, fans, motors, and transformers continue under the standard 18% GST rate.
No compensation cess: Electrical items do not attract any compensation cess, simplifying GST calculation.

Note: These changes apply to supplies made on or after 22 September 2025. Businesses should update their invoices and price lists to reflect the revised GST rates applicable from this date.

GST Calculation on Electrical Items with an Example

GST is calculated on the taxable value, which is the price of the goods before adding GST. To calculate the GST amount, multiply the taxable value by the applicable GST rate and add the tax amount to the product price.

For example:

Suppose a business purchases 5 bundles of electrical wire at ₹500 per bundle with 18% GST:

Total value: 5 × ₹500 = ₹2,500
GST at 18%: ₹2,500 × 18% = ₹450
Total amount payable: ₹2,500 + ₹450 = ₹2,950

For intra-state purchases, the 18% GST is divided into 9% CGST and 9% SGST, while inter-state purchases attract 18% IGST. The total GST amount remains ₹450 in both cases.

Tip: You can use RegisterKaro’s GST Calculator to calculate the GST amount, taxable value, and total invoice value accurately.

Can You Claim Input Tax Credit on Electrical Items?

GST-registered businesses can claim Input Tax Credit (ITC) on electrical items purchased for business activities, provided they meet the required GST conditions. Businesses can reduce their tax liability by claiming eligible GST paid on these purchases. They:

Can claim ITC on items such as wiring, switchgear, and electrical equipment when they use them for business operations. To claim the credit, businesses must purchase these items from a registered supplier and maintain a valid tax invoice with accurate details.
Cannot claim ITC on electrical items used for personal or household purposes. They may also face restrictions when they use electrical items for constructing an immovable property on their own account, as specified under Section 17(5) of the CGST Act.

Note: Businesses should verify that supplier invoices contain correct HSN details and match their GST records, as incorrect invoice information can create issues during ITC claims.

GST on Scrap Sale of Electrical Items

GST also applies to the sale of electrical scrap, such as old wires, motors, and other metal or electronic waste sold for recycling. The rate is the standard 18%, but special rules can apply to who pays the tax. Here is how it works:

Scrap is taxed at 18%: The sale of electrical and electronic scrap attracts 18% GST, the same as most electrical goods.
E-waste attracts 5% GST: Electronic waste, including discarded computers and other electronic equipment, attracts 5% GST under the applicable classification.
Reverse charge may apply: In certain cases, a reverse charge mechanism applies to metal scrap, where the registered buyer pays the GST instead of the seller.
Correct classification matters: Different types of scrap fall under different HSN codes, so classifying the scrap correctly ensures the right rate and treatment.

Note: Businesses must maintain accurate invoices and records for scrap sales. If the electrical items were purchased for business use and ITC was claimed earlier, businesses should review the applicable ITC rules during scrap disposal to ensure proper GST compliance.

GST on Electrical Installation and Wiring Services

GST also applies to electrical installation services, including wiring, installation, and repair work. These services are taxed separately from the electrical materials used during the work.

The applicable GST treatment is as follows:

Installation and Wiring Services: Electrical installation, wiring, and repair services generally attract 18% GST as service activities. However, pure labor electrical work provided for a single residential unit without supplying any materials may qualify for GST exemption. Pure labor services provided for commercial projects generally attract 18% GST.
Separate Tax on Materials: Electrical items used in the service are taxed according to their applicable HSN code and GST rate. For example, insulated wires and cables under HSN 8544 attract 18% GST, while switches and sockets under HSN 8536 attract 18% GST.
Works Contract: When a single contract includes both materials and installation services, it is generally treated as a works contract and taxed at 18% GST.
Government Projects: Electrical installation projects provided to government entities may attract 18% GST, and applicable Tax Deducted at Source (TDS) provisions under Section 51 may apply.
Supply of Electricity: The supply of electricity by electricity distribution utilities remains exempt from GST. However, related installation and maintenance services may attract GST depending on their classification.

Final Note

GST for electrical items in India is mostly 18%, while LED lights attract a lower 5% rate after the September 2025 reforms. Since electrical goods fall under multiple HSN codes, accurate classification is important for correct invoicing and input tax credit claims.

If you want to simplify GST compliance for your electrical goods business, RegisterKaro can help with GST registration, advisory support, and compliance solutions. Contact us today for expert assistance with your GST requirements!

Sidharth Ravichandran

Sidharth Ravichandran is a Chartered Accountant with over 6 years of experience advising startups, SMEs, and growing enterprises on company registrations, taxation, and intellectual property protection. He has been instrumental in building one of India's leading business compliance and legal services platforms. Sidharth regularly writes and speaks on compliance matters, showcasing a combination of regulatory knowledge with practical business perspectives. Through his thought leadership and professional expertise, Sidharth remains committed to making legal, compliance, and intellectual property services more accessible for India's growing startup and business ecosystem.