GST on Battery 2025-26 — EV, Lead-Acid, Solar & Mobile Battery Rates

Updated: 3 June 2026 | FY 2025-26 | Budget 2023 EV Rate | HSN 8506 / 8507

GST on batteries in India varies by battery type: EV lithium-ion batteries attract 5% GST (reduced in Budget 2023 to promote electric mobility), lead-acid batteries 18% (HSN 8507 10), mobile/laptop batteries 18%, UPS/inverter batteries 18%, and solar system batteries 12%. Primary dry-cell batteries (AA, AAA, torch cells) under HSN 8506 attract 18% GST. Battery scrap sold by registered dealers also attracts GST.

GST on EV lithium-ion batteries — reduced in Budget 2023
Other lithium-ion batteries (mobile, laptop, UPS): 18%. Solar batteries: 12%. Lead-acid: 18%.

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Note on UPS/inverter batteries: Standard UPS batteries (valve-regulated lead-acid / VRLA) used in home inverters attract 18% GST. They do not benefit from the 5% EV rate, which is specific to batteries used in electric vehicle drivetrains.

GST Rate Table — All Battery Types with HSN Codes

Battery Type	GST Rate	HSN Code	Notes
EV lithium-ion batteries (traction)	5%	8507 60	Reduced from 18% in Budget 2023; for EV drivetrains only
Lead-acid automotive batteries	18%	8507 10	Car starter batteries, truck batteries
Lead-acid inverter / UPS batteries	18%	8507 20	Home inverters, industrial UPS systems
Mobile phone batteries (Li-ion)	18%	8507 60	Replacement batteries for smartphones
Laptop / tablet batteries (Li-ion)	18%	8507 60	Consumer electronics; 18% applies
Solar energy storage batteries	12%	8507	Batteries specifically used in solar power systems
Dry cell batteries (AA, AAA, D-cell)	18%	8506	Primary cells — torch, remote, toys
Nickel-metal hydride (NiMH) batteries	18%	8507 80	Rechargeable consumer batteries
Industrial / telecom backup batteries	18%	8507 20	VRLA batteries for telecom towers, data centres
Battery packs / assembled battery modules	18% / 5%*	8507	*5% only if for EV use; otherwise 18%

EV Batteries — Budget 2023 Rate Reduction

5% GST — EV BATTERIES

Lithium-Ion Batteries for Electric Vehicles

The GST Council, following the Union Budget 2023, reduced GST on lithium-ion batteries used in electric vehicles from 18% to 5%. This rate reduction was part of India's FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) policy push. The 5% rate covers traction battery packs fitted in electric two-wheelers, three-wheelers, and four-wheelers. Standalone EV battery cells, modules, and battery management systems (BMS) sold to EV manufacturers also attract 5% GST.

18% GST — OTHER LITHIUM-ION

Non-EV Lithium-Ion Batteries Remain at 18%

Despite the EV battery cut, lithium-ion batteries for mobile phones, laptops, portable power banks, cordless tools, and industrial applications continue to attract 18% GST. The classification depends on end-use and HSN specifics — EV battery manufacturers must ensure proper HSN classification to claim the 5% rate.

Lead-Acid Battery GST — Cars and Inverters

Lead-acid batteries remain one of the most widely used battery types in India — for automotive starters and for home/commercial inverter backup systems. Both attract 18% GST under HSN 8507 10 and 8507 20 respectively. When an authorised service centre replaces your car battery and charges GST, verify the HSN code and GST rate on the invoice. Registered businesses can claim ITC on lead-acid batteries purchased for vehicles used in business.

Solar Batteries — 12% Concessional Rate

Batteries used as part of solar energy systems attract a concessional 12% GST. This covers solar charge-discharge batteries, solar home system batteries, and battery banks paired with rooftop solar installations. The 12% rate is part of a broader package of concessions for solar equipment (solar panels, solar inverters, and solar charge controllers also attract 12% GST). Ensure that the supplier's invoice clearly identifies the batteries as "solar batteries" or "batteries for solar power systems" to benefit from this rate.

ITC Availability for Battery Dealers and Manufacturers

Entity	ITC Available On	Condition
Battery retailer / dealer	GST paid on purchase of batteries for resale	Must be GST registered; use in taxable supply
Battery manufacturer	Raw materials (lead, lithium, separators, casings), machinery	Proper purchase invoices from registered suppliers
EV manufacturer	5% GST on EV battery packs / cells purchased	Used in manufacturing EV — ITC available
Business using inverter/UPS	18% GST on UPS battery for office/business use	ITC allowed if UPS used in taxable business activity
Individual consumer	Not applicable	No ITC for personal purchases

Frequently Asked Questions

What is the GST rate on EV (electric vehicle) batteries in India?

EV lithium-ion batteries attract 5% GST as of Budget 2023, reduced from the earlier 18%. This reduction was announced to promote the adoption of electric vehicles and make EVs more affordable. The 5% rate applies to lithium-ion batteries used in electric vehicles (HSN 8507). This reduction covers traction batteries for two-wheelers, three-wheelers, and four-wheelers. Note: lithium-ion batteries for other uses (mobile phones, laptops, UPS) continue to attract 18% GST. The HSN code for most lithium-ion batteries is 8507 60.

What is the GST on mobile phone and laptop batteries?

Mobile phone batteries and laptop batteries attract 18% GST under HSN code 8507. These are classified as lithium-ion batteries for portable consumer electronics and are distinct from EV traction batteries. When you buy a mobile phone, the GST on the entire device (including battery) is 18%. When you buy a replacement mobile battery separately, 18% GST applies. Laptop replacement batteries also attract 18% GST. Input Tax Credit (ITC) is available to registered businesses purchasing these batteries for resale or business use.

What GST rate applies to lead-acid batteries used in cars and inverters?

Lead-acid batteries (HSN 8507 10) used in petrol/diesel cars and home inverters attract 18% GST. These are the conventional flooded or sealed lead-acid batteries used as automotive starter batteries and as backup power in inverter-UPS systems. When you buy a car battery from a shop, the invoice will include 18% GST. Lead-acid batteries used in industrial applications — forklifts, telecom towers, etc. — also attract 18% GST. Used/old lead-acid batteries (scrap) are also subject to GST when sold by registered dealers.

Is there GST on solar batteries and home energy storage systems?

Solar batteries (batteries used specifically in solar energy storage systems) attract 12% GST. This concessional rate applies when the battery forms part of a solar power generation or storage system. The lower 12% rate is part of India's policy to encourage renewable energy adoption. However, a lithium-ion battery sold independently at retail without being integrated into a solar system is taxed at 18% (for EV) or 5% (for EV traction batteries). When buying a solar home system or solar battery pack specifically for solar storage, verify that the invoice shows 12% GST on the battery component. HSN code for solar system batteries is generally 8507.

Do battery dealers need to register for GST and what ITC can they claim?

Battery dealers and retailers must register for GST if their annual turnover exceeds ₹40 lakh (for goods traders) or ₹20 lakh (in special category states). Registered battery dealers can claim Input Tax Credit (ITC) on batteries purchased from manufacturers or distributors for resale — the GST paid on purchase can be offset against GST collected on sales. Battery manufacturers can claim ITC on raw materials (lead, lithium, acid, separators, casings) used in manufacturing. Dealers who also provide battery installation or replacement services must charge 18% GST on the service component separately. Old battery buyback schemes: GST applies when old batteries are sold.

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