Since the GST 2.0 reform of 22 September 2025, almost every battery is taxed at a uniform 18% GST — lithium-ion, lead-acid automotive, inverter/UPS, mobile, laptop and solar batteries all fall under HSN 8507 (or dry cells under 8506) at 18%. The old 28% rate on many lead-acid batteries is gone. An EV traction battery is 5% only when it is fitted in and sold together with the electric vehicle; bought separately it is 18%.
GST Rate on Batteries — Decision Table
Every common battery type with its current GST rate and HSN code under the GST 2.0 structure. See the full HSN code list for related items.
| Battery Type | GST Rate | HSN | Notes |
|---|---|---|---|
| Lithium-ion battery (sold separately) | 18% | 8507 60 | Phones, laptops, power banks, EV spares |
| EV traction battery — with the vehicle | 5% | 8507 60 | Concessional only when built into the EV |
| Lead-acid automotive battery | 18% | 8507 10 | Car/truck starter batteries — was 28% |
| Inverter / UPS battery (VRLA) | 18% | 8507 20 | Home inverters, telecom & data-centre backup |
| Mobile / laptop battery (Li-ion) | 18% | 8507 60 | Replacement consumer batteries |
| Solar storage battery | 18% | 8507 | Sold as a battery; solar panels/devices differ |
| Dry cells (AA, AAA, D-cell) | 18% | 8506 | Primary cells — torch, remote, toys |
| NiMH / other accumulators | 18% | 8507 80 | Rechargeable consumer batteries |
| Battery scrap / used batteries | 18% | 8548 | GST applies when sold by a registered dealer |
Rates reflect the GST 2.0 two-slab structure effective 22 September 2025 (HSN 8506 & 8507 unified at 18%). Confirm on the official GST portal before invoicing.
What Changed for Batteries
The 56th GST Council rationalised battery taxation into a single slab. The biggest change was the removal of the old 28% rate that applied to many lead-acid batteries — they now sit at 18%, in line with lithium-ion batteries that were already there. The earlier concessional 5% for standalone EV batteries and the 12% solar-battery rate were consolidated into the standard 18%.
Pre-22 Sep 2025 (old rates)
- Lead-acid automotive: often 28%
- Lithium-ion (non-EV): 18%
- Standalone EV battery: 5% (claimed)
- Solar storage battery: 12% (claimed)
- Multiple slabs, frequent disputes
GST 2.0 — one rate
- All HSN 8507 batteries: 18%
- Dry cells (HSN 8506): 18%
- EV battery 5% only if sold with the EV
- Solar battery sold on its own: 18%
- Simpler classification, fewer disputes
If your ERP, price list or vendor invoice still shows 28% on lead-acid or a 12% solar-battery line, it is out of date. From 22 September 2025 the correct rate for a battery supplied on its own is 18% — update masters to avoid short/excess tax.
Not sure which HSN and rate your battery falls under?
Get My Battery GST Rate →
EV Batteries — When Is It 5% vs 18%?
The single point of confusion is the electric-vehicle battery. The concessional 5% rate applies to the EV as a whole (which carries its traction battery) — not to a battery you buy loose. A lithium-ion battery sold separately, even for an EV, is taxed at 18%.
- 1Buy an EVBattery built in → 5% on the vehicle
- 2Buy an EV spare batterySold on its own → 18%
- 3Buy a phone/inverter batteryStandard battery → 18%
- 4Register the HSN8507 for the supply on your invoice
- An electric vehicle sold with its battery is charged at the EV rate of 5% — see GST on vehicles.
- A replacement or standalone lithium-ion battery is 18%, whatever the end use.
- Battery cells, modules and packs sold to manufacturers are 18%; the 5% applies to the finished EV, not the input battery.
How GST Adds Up — ₹8,000 Battery
18% Standalone battery (inverter/car/EV spare)
5% EV battery built into the vehicle
Use the GST calculator to work out the tax on any battery invoice at 18% (or 5% for an integrated EV battery).
Because batteries and their inputs are now on a single 18% slab, registered dealers and manufacturers get cleaner, fully creditable ITC chains — less rate mismatch between the battery you buy and the battery you sell.
Battery dealer or EV workshop? Get your HSN classification and returns handled.
Get Battery GST Advice →ITC and Registration for Battery Businesses
A battery trader supplies goods, so GST registration is mandatory once turnover crosses ₹40 lakh (₹20 lakh in special-category states). Registered dealers and manufacturers can claim Input Tax Credit on batteries and inputs bought for taxable supply.
| Entity | ITC Available On | Condition |
|---|---|---|
| Battery retailer / dealer | GST paid on batteries bought for resale | Registered; used in taxable supply |
| Battery manufacturer | Lead, lithium, separators, casings, machinery | Valid invoices from registered suppliers |
| EV manufacturer | 18% on cells/packs purchased | Used to make the EV; ITC flows to output |
| Business using inverter/UPS | 18% on backup battery for business use | ITC allowed if used in taxable activity |
| Individual consumer | Not applicable | No ITC on personal purchases |
ITC needs a valid tax invoice reflected in your GSTR-2B; reconcile before claiming.
✓You should register if
- Battery turnover crosses the ₹40L / ₹20L threshold
- You want to claim ITC on stock and inputs
- You supply inter-state or sell on e-commerce
!Watch out if
- You still bill 28% on lead-acid — that is outdated
- You mix up EV-with-vehicle 5% and spare-battery 18%
- You sell scrap batteries without charging GST
- GST registration (GSTIN)
- Correct HSN — 8506 / 8507
- 18% on standalone batteries
- GSTR-1 (outward supplies)
- GSTR-3B (monthly/quarterly)
- ITC reconciliation with GSTR-2B
- E-way bill on movement
- E-invoicing (if applicable)
- Rates & notifications: gst.gov.in
- CBIC rate finder: cbic-gst.gov.in
- GST 2.0 rate rationalisation: 56th GST Council, effective 22 September 2025
- HSN 8506 (primary cells) & 8507 (accumulators) — GST Rate Schedule
Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position with the official source before you act on it.