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HSN 8541
Solar Panel HSN Code 8541 and GST Rate
Solar cells and photovoltaic modules fall under HSN 8541. Assembled PV modules and panels are classified under 85414300 in the current tariff (older lists use 85414011). GST on solar panels is 5% from 22 September 2025, down from 12%.
- HSN code
- 8541
- GST rate
- 5%
- Rates as of
- GST 2.0 (from 22 Sep 2025)
- Last checked
Solar Panel HSN code list with GST rates
| HSN code | Description | GST |
|---|---|---|
| 85414300 | Photovoltaic cells assembled in modules or made up into panels | 5% (was 12%) |
| 85414200 | Photovoltaic cells not assembled in modules | 5% (was 12%) |
| 8504 | Inverters sold separately | 18% |
| 8507 | Batteries sold separately | 18% |
GST on solar panels and systems
A 3 kW set of panels priced at ₹90,000 before tax carries ₹4,500 GST at 5%. Inverters, batteries, mounting structures and cables bought separately are generally taxed at 18%.
For turnkey solar projects, the contract value is commonly split 70% goods at 5% and 30% services at 18%.
GST calculator for solar panel
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Frequently Asked Questions
What is the HSN code for solar panels?
Solar panels fall under HSN 8541; assembled PV modules are 85414300 (older code 85414011).
What is the GST rate on solar panels in 2026?
5%, from 22 September 2025. It was 12% before GST 2.0.
What is the GST on a solar inverter?
Inverters sold separately are generally taxed at 18%.
What is the GST on solar batteries?
Batteries under HSN 8507 are taxed at 18%.
How is GST charged on a rooftop solar installation?
Turnkey contracts commonly treat 70% of the value as goods at 5% and 30% as services at 18%, giving an effective rate of about 8.9%.
Can a business claim ITC on solar panels?
Yes, if the solar plant is used for business, the GST paid can be claimed as input tax credit.
How many digits of the HSN or SAC code must be shown on an invoice?
Businesses with aggregate turnover up to ₹5 crore must show 4 digits on B2B invoices; above ₹5 crore, 6 digits are mandatory on all invoices.
What happens if the wrong HSN or SAC code is used?
A wrong code can lead to the wrong tax rate, mismatches in returns and possible demands with interest and penalty. Correct the classification and, if tax was underpaid, pay the difference with interest.
Where can the GST rate for a code be verified?
Check the current CBIC rate notifications for the exact tariff entry, description and conditions. Rates on this page reflect GST 2.0, effective 22 September 2025.
Is this page an official classification ruling?
No. Taxzentic is an independent reference. Classification depends on the exact product or service; seek professional advice or an advance ruling for disputed items.
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