Understand the GST rate for LED bulbs, including solar LED lights and other lighting products. Learn about HSN codes, tax implications, and related government policies.
In recent years, LED bulbs have become a popular lighting solution due to their energy efficiency and long lifespan. Under the Goods and Services Tax (GST) regime, these products are classified as electrical lighting fixtures and attract a specific tax rate. The GST on LED bulbs typically falls within the 12% category, but this can vary slightly depending on specific product types, government policies, and related notifications. The proper classification of the LED bulbs is essential to understand the exact tax liability and ensure compliance with the tax laws.
In this blog, we will explore the GST rates applicable to LED bulbs and other lighting products, providing a comprehensive understanding of how they are taxed. Additionally, we will discuss key points such as the HSN code for LED bulbs, any variations in rates for related products, and the impact of these rates on consumers and businesses.
Understanding the GST rate for LED bulbs is crucial for both consumers and businesses alike. By the end of this blog, you will gain clarity on how LED bulbs are taxed, helping you make informed decisions whether you are a business owner, manufacturer, or consumer purchasing lighting solutions.
What Are the GST Rates for LED Bulbs?
Kerosene pressure lanterns and parts of kerosene pressure lanterns, including gas mantles, are the only light products that attract a GST of 5%. All other lighting products attract a higher GST rate
Further, Hurricane lanterns, Kerosene lamp/ lantern, petromax, glass chimney, accessories & components thereof attract 12% GST.
Finally, lamps and lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included; illuminated signs, illuminated nameplates and the like, having a permanently fixed light source, and parts thereof not elsewhere specified or included attract a GST rate of 28%.
HSN Code for LED Bulbs and Lights
The HSN code (Harmonized System of Nomenclature) is a standardized system used for classifying goods for taxation purposes. For LED bulbs, the HSN code is crucial in determining the applicable GST rate. For instance, the HSN code for 9W LED bulbs is 85395000, while 100W LED lights are classified under 94054090. These codes help identify the product type and ensure that it is taxed correctly according to the GST regulations.
By assigning an appropriate HSN code, businesses can accurately calculate their GST obligations. For LED bulbs, which are typically taxed at 12%, using the correct HSN code ensures compliance with tax laws and avoids issues like underreporting or overcharging GST. Similarly, understanding the classification under the HSN code helps businesses identify whether their products qualify for any exemptions or lower tax rates, such as the 5% GST for solar-powered LED lights.
GST Rate Changes and Government Policies
A GST Amnesty Scheme is going to extend appeal filing time till 31 January 2024 against the time period of three months under the law for all the orders passed till March 2023 12.5 percent pre-deposit of tax 2.5 % is paid in cash.
- CGST Section 159 is going to be amended. Automatic restoration of will be done of provisionally attached property after completion of one year
- It is also clarified that no GST will be charged on personal guarantee provided by directors to the bank against loans or credit limits sanctioned to the company
- The GST Council has delegated to states the authority to tax Extra Neutral Alcohol (ENA) used in alcoholic beverages for human consumption
- The taxable value of a corporate guarantee made between related people (a holding company and its subsidiary) is defined as 1% of the guaranteed amount offered or the real compensation.
Conclusion
In conclusion, the GST rate for LED bulbs, typically set at 12%, plays a significant role in determining the pricing and compliance for both businesses and consumers. With the correct HSN code (85395000) for standard LED bulbs, it’s crucial to understand the tax implications on LED lamps and related lighting products. While solar LED lights attract a lower GST rate of 12%, it’s important to stay updated on any government notifications that may alter these rates.
Whether you’re a manufacturer, retailer, or consumer, understanding these tax classifications ensures smooth transactions and compliance with the evolving GST framework. Always check the product’s tax category to avoid discrepancies and ensure fair pricing across the market.
FAQs
LED bulbs typically attract a 12% GST rate under the current tax regime. However, some variations, like solar LED lights, may have different rates such as 5%.
LED bulbs attract a GST rate ranging from 12% to 18%, varying based on government notifications and policies.
The HSN code for a 9W LED bulb is 85395000, which classifies it under electrical lighting products for tax purposes.
The Goods and Services Tax (GST) rate for solar LED lights and related products is generally 12%
LED lamps, like other LED lighting products, are generally subject to a 12% GST rate unless specified otherwise by government notifications. What is the GST rate for LED bulbs?
Is LED 12% to 18% GST?
What is the HSN code for a 9W LED bulb?
Are solar LED lights taxed differently?
What is the GST rate for LED lamps?
