Electrical items do not attract a uniform GST rate in India. Most commonly used electrical appliances, wires, switches and equipment attract 18% GST, while specified renewable-energy goods and electric-vehicle charging equipment qualify for concessional treatment.

The major rate changes took effect on 22 September 2025, following the 56th GST Council meeting. The latest relevant developments arise from the 57th GST Council meeting held on 8 October 2026, particularly its recommendations concerning electrical and electronic waste and scrap. Existing rates and proposed compliance changes must be distinguished.

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Notification Governing the Current Rates

Notification No. 9/2025–Central Tax (Rate), dated 17 September 2025, superseded Notification No. 1/2017–Central Tax (Rate). The Ministry of Finance confirmed this through its FAQs issued on 18 September 2025.

The corresponding inter-State goods rates appear in Notification No. 9/2025–Integrated Tax (Rate). Notification No. 10/2025–Central Tax (Rate) replaced the earlier general goods-exemption notification.

Consequently, an electrical-goods rate chart based solely on the original 2017 notification may give an outdated result. The current notification, subsequent amendments and precise product description must be checked together. 

Item-Wise GST Rates

The following figures represent total GST. The HSN headings are category references; the goods must also satisfy the relevant description and exclusions.

These categories are covered by the goods-rate schedule. 

For an intra-State transaction attracting 18%, the usual division is 9% CGST and 9% SGST. An inter-State transaction attracts 18% IGST. A 5% intra-State rate similarly comprises 2.5% CGST and 2.5% SGST.

Air Conditioners, Televisions and Dishwashers: The September 2025 Changes

The September 2025 overhaul reduced GST on air conditioners, dishwashers and televisions above 32 inches from 28% to 18%. Smaller televisions were already at 18%.

The government also announced reductions for monitors and projectors previously attracting 28%, and electric accumulators previously falling within that slab. These changes should not be described as a fresh reduction for every electrical appliance: many everyday appliances were already taxed at 18%. 

A ten-percentage-point tax reduction does not mean a 10% reduction in the earlier tax-inclusive price. For example, at an unchanged taxable value of ₹50,000, an appliance costs ₹64,000 with 28% GST and ₹59,000 with 18% GST. The saving of ₹5,000 equals approximately 7.81% of the earlier gross price.

Actual retail prices also depend on changes in the taxable selling price and discounts.

Solar Panels and Renewable-Energy Goods

The September 2025 reforms reduced GST from 12% to 5% on specified renewable-energy devices and solar panels/photovoltaic cells.

This concession requires the goods to fall within the notified entry. Businesses should establish the classification of each supply rather than assume that every component delivered to a solar project qualifies for the concessional rate. 

Batteries Supplied with UPS or Inverters

Circular No. 163/19/2021–GST, dated 6 October 2021, clarified the treatment of external batteries sold with UPS systems or inverters.

Where the UPS/inverter and external battery are separately identifiable and their prices are separately known, the circular treats them as distinct goods even when supplied on the same invoice.

Its historical rates require care. The circular referred to 18% for UPS/inverters and 28% for batteries other than lithium-ion batteries under the schedule then in force. That historical reference must be read with the subsequent rate changes, rather than reproduced as a current battery rate. 

Electrical Installation and Equipment Rental

Electrical wiring and fitting services fall under SAC 995461, while heating, ventilation and air-conditioning installation services fall under SAC 995463. An equipment-sale invoice and an installation contract therefore raise different classification questions. 

Ordinary taxable electrical installation services generally attract 18%, subject to the relevant service entry. Contracts involving materials and installation also require examination of composite-supply and works-contract provisions. 

The Finance Ministry’s FAQs dated 16 September 2025 explained that most leasing or rental services without an operator follow the rate applicable to like goods. The precise rental-service entry must nevertheless be checked. 

Electricity-Utility Exemptions Have a Limited Scope

Circular No. 234/28/2024–GST, dated 11 October 2024, explained the exemption for specified services incidental or ancillary to electricity transmission and distribution by electricity utilities.

These include renting metering equipment, testing meters or transformers, releasing connections, shifting meters or service lines and issuing duplicate bills within the prescribed scope.

The exemption took effect from 10 October 2024 through Notification No. 8/2024–Central Tax (Rate). It does not create a general exemption for commercial sales of electrical appliances, cables, meters or transformers. 

Latest Development: October 2026 Recommendations on Electrical Scrap

The 57th GST Council recommended extending a TDS and reverse-charge framework to specified electrical and electronic waste and scrap.

Its official FAQs describe 2% TDS on registered-to-registered supplies and reverse charge on supplies from an unregistered person to a registered recipient.

The 2% figure concerns deduction of tax; it is not the GST rate on the scrap. The FAQs expressly state that the changes will be implemented through relevant notifications and circulars. This research did not establish a commencement notification for the extension as of 14 October 2026, so it is reported here as a recommendation. 

Proposed Refund Changes for Manufacturers

The October 2026 government explanation also describes proposed expansion of refund eligibility: input-service credit for inverted-duty refunds from 1 November 2026, and capital-goods credit for qualifying zero-rated and inverted-duty refunds from 1 April 2027.

The capital-goods proposal envisages spreading the relevant credit over 60 months. These measures could affect electrical manufacturers, but do not reduce the GST rate on their products. Implementing provisions and commencement dates must be checked before claiming the expanded refunds.

April 2026 Notification Did Not Announce a General Electrical-Goods Rate Cut

Notification No. 1/2026–Central Tax (Rate), dated 30 April 2026, amended the principal 2025 notification.

The GST Council’s April 2026 newsletter explains that this amendment aligned beverage classifications under heading 2202 with Finance Act 2026 changes. It does not establish a general reduction for electrical goods. 

Old Stock and Input Tax Credit

The September 2025 Finance Ministry FAQs clarified that revised rates apply to goods supplied after a rate change, subject to time-of-supply provisions. Purchasing stock at an earlier higher rate does not, by itself, require a dealer to continue charging that rate.

Where supply, invoice and payment dates straddle the change, Section 14 of the CGST Act requires examination.

Lawfully availed ITC can continue to be utilised under the applicable provisions. However, a higher purchase rate and lower resale rate on the same goods at different times do not automatically establish an inverted-duty refund entitlement. 

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