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HSN Chapter 85: Electrical Machinery & Equipment GST Rates 2025

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⚡ Major Electronics Revolution - GST 2.0 SEPTEMBER 22, 2025

Historic GST Cuts on Electronics & Appliances:
Massive GST reduction from 28% to 18% on major household appliances and electronics! GST 2.0 has eliminated the 12% slab and simplified the structure to just 4 rates: 0%, 5%, 18%, and 40%.

Key Changes in Chapter 85:

  • Major Appliances: TVs, ACs, Refrigerators, Washing Machines: 28% → 18%
  • 🔋 Batteries & Solar: Electric accumulators reduced to 18%
  • 🏭 Industrial Equipment: Motors, generators remain at 18%
  • 💡 LED Lights: Continue at 18%
  • 🚫 NO MORE 12% RATE - Completely eliminated under GST 2.0

HSN Chapter 85 covers electrical machinery and equipment, encompassing everything from household appliances to industrial motors, sound equipment, and electronic components. This chapter has undergone revolutionary changes under GST 2.0, with dramatic rate reductions on consumer electronics and appliances.

The September 22, 2025 GST 2.0 reforms have brought the most significant changes to electronics pricing in India's tax history. The shift from 28% to 18% GST on major appliances represents savings of 8-10% for consumers, making technology more accessible across India.

🔋 GST 2.0 Simplified Rate Structure for Chapter 85

New GST 2.0 Rate Categories for Electrical Equipment:

  • 🟢 0% GST: Solar panels and renewable energy equipment (specific exemptions)
  • 🔵 5% GST: Solar inverters, energy-efficient devices (green tech promotion)
  • 🟡 18% GST: All electrical appliances, motors, electronics, TVs, ACs, refrigerators
  • 🔴 40% GST: No items in Chapter 85 (reserved for luxury/sin goods)

⚠️ MASSIVE SAVINGS: Electronics Price Revolution

Under GST 2.0, major electronics have seen unprecedented price cuts:

  • 📺 Smart TVs (>32"): 28% → 18% (Save ₹3,000-8,000)
  • ❄️ Refrigerators: 28% → 18% (Save ₹2,500-5,000)
  • 🌡️ Air Conditioners: 28% → 18% (Save ₹5,000-10,000)
  • 👕 Washing Machines: 28% → 18% (Save ₹2,000-4,000)

📺 Consumer Electronics & Appliances (Major Beneficiaries)

Revolutionary Appliance GST Cuts

The biggest winners of GST 2.0! Consumer appliances and electronics have moved from the 28% "luxury" category to 18% standard rate, making them significantly more affordable for Indian households.

HSN 8528 - Television & Display Equipment

HSN Code Description GST 2.0 Rate Previous Rate Savings
8528 71 Reception apparatus for TV (>32 inch) 18% 28% 36% price reduction
8528 72 Smart TVs and connected displays 18% 28% 36% price reduction
8528 73 LED/OLED Television sets 18% 28% 36% price reduction

HSN 8415 - Air Conditioning Equipment

HSN Code Description GST 2.0 Rate Previous Rate Application
8415 10 Window/wall type air conditioners 18% 28% Residential cooling
8415 20 Split air conditioning machines 18% 28% Home & office cooling
8415 81 Inverter air conditioners 18% 28% Energy-efficient cooling
8415 82 Central air conditioning systems 18% 28% Commercial cooling

HSN 8418 - Refrigerators & Freezers

HSN Code Description GST 2.0 Rate Previous Rate Type
8418 10 Single door refrigerators 18% 28% Small household fridges
8418 21 Double door refrigerators 18% 28% Large household fridges
8418 30 Freezers (chest/upright) 18% 28% Food storage appliances
8418 40 Refrigerator-freezer combinations 18% 28% Multi-compartment units

HSN 8450 - Washing Machines

HSN Code Description GST 2.0 Rate Previous Rate Category
8450 11 Fully automatic washing machines 18% 28% Top & front loading
8450 12 Semi-automatic washing machines 18% 28% Twin tub machines
8450 19 Other washing machines 18% 28% Commercial washers
8450 20 Washing machines ≥10 kg capacity 18% 28% Heavy duty machines

HSN 8422 - Dishwashers & Kitchen Appliances

HSN Code Description GST 2.0 Rate Previous Rate Application
8422 11 Dishwashing machines (household) 18% 28% Kitchen automation
8422 19 Commercial dishwashing machines 18% 28% Restaurant equipment

🔌 Electric Motors & Generators (HSN 8501)

Industrial Electrical Equipment

Electric motors and generators remain at the standard 18% GST rate, providing consistency for industrial applications and manufacturing sectors.

HSN 8501 - Electric Motors & Generators

HSN Code Description GST 2.0 Rate Previous Rate Power Range
8501 10 Motors ≤37.5 W 18% 18% Micro motors
8501 20 Universal AC/DC motors >37.5 W 18% 18% Small appliance motors
8501 31 DC motors ≤750 W 18% 18% Small industrial motors
8501 32 DC motors 750 W - 75 kW 18% 18% Medium industrial motors
8501 33 DC motors 75 kW - 375 kW 18% 18% Large industrial motors
8501 34 DC motors >375 kW 18% 18% Heavy industrial motors
8501 40 AC motors, single-phase 18% 18% Household/small commercial
8501 51 AC motors 3-phase ≤750 W 18% 18% Small 3-phase motors
8501 52 AC motors 3-phase 750 W - 75 kW 18% 18% Standard industrial motors
8501 53 AC motors 3-phase >75 kW 18% 18% Large industrial motors
8501 61 AC generators ≤75 kVA 18% 18% Small generators
8501 62 AC generators 75-375 kVA 18% 18% Medium generators
8501 63 AC generators 375-750 kVA 18% 18% Large generators
8501 64 AC generators >750 kVA 18% 18% Industrial/power plant generators

🔋 Batteries & Energy Storage (HSN 8507)

HSN 8507 - Electric Accumulators & Batteries

HSN Code Description GST 2.0 Rate Previous Rate Application
8507 10 Lead-acid batteries (vehicle) 18% 28% Automotive batteries
8507 20 Lead-acid batteries (other) 18% 28% UPS, inverter batteries
8507 30 Nickel-cadmium batteries 18% 28% Rechargeable batteries
8507 40 Nickel-iron batteries 18% 28% Industrial batteries
8507 50 Nickel-metal hydride batteries 18% 28% Hybrid vehicle batteries
8507 60 Lithium-ion batteries 18% 28% Electric vehicles, electronics
8507 80 Other electric accumulators 18% 28% Specialty batteries

💡 Lighting Equipment (HSN 8539)

HSN 8539 - Electric Lamps & Lighting Equipment

HSN Code Description GST 2.0 Rate Previous Rate Technology
8539 10 Sealed beam lamp units 18% 18% Automotive lighting
8539 21 Tungsten halogen lamps 18% 18% High-intensity lighting
8539 22 Incandescent lamps ≤200W 18% 18% Traditional bulbs
8539 29 Other incandescent lamps 18% 18% Specialty bulbs
8539 31 Fluorescent lamps 18% 18% Tube lights, CFLs
8539 32 Mercury/sodium vapor lamps 18% 18% Street lighting
8539 39 Other discharge lamps 18% 18% Specialty discharge lamps
8539 50 LED lamps and modules 18% 18% Energy-efficient lighting

🎵 Sound Equipment & Electronics (HSN 8518-8522)

HSN 8518 - Audio Equipment

HSN Code Description GST 2.0 Rate Previous Rate Type
8518 10 Microphones and stands 18% 18% Audio recording
8518 21 Single loudspeakers 18% 18% Audio speakers
8518 22 Multiple loudspeaker systems 18% 18% Sound systems
8518 30 Headphones and earphones 18% 18% Personal audio
8518 40 Audio-frequency amplifiers 18% 18% Sound amplification
8518 50 Electric sound amplifier sets 18% 18% Complete sound systems

🌟 Green Technology & Solar Equipment

Green Technology Incentives

GST 2.0 promotes renewable energy with special rates on solar equipment and energy-efficient devices to support India's sustainable development goals.

Solar & Renewable Energy Equipment

HSN Code Description GST 2.0 Rate Previous Rate Green Benefit
8541 40 Solar cells (photovoltaic) 5% 5% Renewable energy promotion
8504 40 Solar inverters 5% 5% Solar power conversion
8507 60 Lithium solar batteries 18% 28% Energy storage for solar

🧮 GST 2.0 Calculator for Chapter 85 Items

Electronics GST Calculator - Latest 2025 Rates

Calculate GST using the new simplified rate structure for electrical equipment:

GST 2.0 Calculation Formula:
CGST = (Product Value × GST Rate) ÷ 200
SGST = (Product Value × GST Rate) ÷ 200
Total GST = CGST + SGST
Final Amount = Product Value + Total GST
Major Electronics: 28% → 18% under GST 2.0

💰 Price Impact Calculator - Before vs After GST 2.0

🎯 Real Savings Examples on Popular Electronics:

Product Price (₹) Old GST (28%) New GST (18%) Your Savings
55" Smart TV ₹50,000 ₹64,000 ₹59,000 ₹5,000
1.5 Ton AC ₹35,000 ₹44,800 ₹41,300 ₹3,500
Double Door Fridge ₹30,000 ₹38,400 ₹35,400 ₹3,000
Washing Machine ₹25,000 ₹32,000 ₹29,500 ₹2,500

📋 GST 2.0 Compliance Points for Chapter 85

🏬 Electronics Retailers

  • Major appliances: 28% → 18% (huge savings)
  • Update pricing systems immediately
  • Simplified rate structure reduces errors
  • Enhanced customer affordability
  • Boost in sales expected due to lower prices

🏭 Industrial Equipment

  • Motors & generators remain at 18%
  • Industrial batteries: 28% → 18%
  • Consistent rates for manufacturing
  • Reduced working capital requirements
  • Simplified B2B transactions

🌱 Green Technology

  • Solar equipment continues at 5%
  • Energy storage solutions at 18%
  • Promotes renewable energy adoption
  • Government incentives for clean tech
  • Sustainable development support

🎵 Electronics Manufacturers

  • Audio equipment remains at 18%
  • Consumer electronics major beneficiary
  • Simplified supply chain taxation
  • Reduced compliance burden
  • Make in India boost expected

🎯 GST 2.0 Industry Revolution

Electronics Industry Transformation

  • Price Revolution: 28% → 18% on major appliances saves 36%
  • 📱 Digital India Boost: Technology becomes more accessible
  • 🏠 Home Modernization: Smart appliances within reach of middle class
  • 🛒 Festive Demand: GST cuts timed perfectly for festival season
  • 📈 Economic Growth: Increased consumption drives manufacturing

Business Strategy Implications

  • 📊 Inventory Revaluation: Existing stock benefits from rate cuts
  • 🏭 Production Planning: Increased demand expected across segments
  • 💼 Pricing Strategy: Companies can pass savings to consumers
  • 📈 Market Expansion: Lower prices open new customer segments
  • Competition Intensifies: Price wars likely in electronics

❓ GST 2.0 Frequently Asked Questions

Q1: When did the new GST rates on electronics become effective?

Answer: The new GST rates became effective from September 22, 2025. All electronics purchases on or after this date benefit from the reduced rates (28% → 18% on major appliances).

Q2: Which electronics got the biggest price cuts under GST 2.0?

Answer: Major household appliances saw the biggest cuts: Smart TVs (>32"), ACs, refrigerators, washing machines, and dishwashers all moved from 28% to 18%, resulting in 8-10% price reduction.

Q3: Can businesses claim ITC on electronics purchases at new rates?

Answer: Yes, businesses can claim full Input Tax Credit on electronics purchases at the new rates, provided they're used for business purposes and the supplier is GST-registered.

Q4: What about electronics bought before September 22, 2025?

Answer: Electronics purchased before September 22, 2025, were subject to the old rates (28%). Only purchases from September 22 onwards benefit from the reduced rates.

Q5: Are mobile phones and laptops also covered under these rate cuts?

Answer: Mobile phones and laptops have different HSN classifications and their rates vary based on value. Premium devices may still attract higher rates, while basic models benefit from standard 18% GST.

🔗 Related Resources

💼 Business Services

  • Electronics Import Consultation
  • GST 2.0 Compliance Advisory
  • HSN Classification Services
  • Electronics Business GST Registration

⚡ Need Help with Electronics GST Compliance?

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