Electrical Transformers HSN Code 8504 & GST Rates 2025 Explained

What is HSN Code 8504?

HSN Code 8504 covers a broad range of electrical equipment used for transforming, converting, or regulating voltage and current in industrial, commercial, and residential buildings.The electrical transformers hsn code 8504 includes step-up/step-down transformers, static converters (rectifiers, inverters), various types of inductors, ballasts for lamps, battery chargers, voltage regulators, and their parts.​

GST Rates & Exemptions for HSN Code 8504

The 8504 hsn code gst rate is generally 18% for most electrical transformer and converter products, including standard transformers, inverters, and power inductors.In certain cases (like ballasts for lamps, some small transformers, and select static converters) a 5% GST rate applies, which is mostly reserved for specifically notified goods used in special projects or government schemes.​

Key Details:

• General GST rate: 18%
• Concessional GST rate (if notified): 5% for eligible items in energy projects

Table Notes

• Sub-codes (like 850410, 850440, 850490) may attract differing rates, so always verify current notifications for your product.
• Most commercial transformer sales are billed at 18% GST.

GST Rates Applicable Under 8504

(Check for latest GST notifications if your item may be eligible for 5% as per government tender/project rules.).​

What’s Included Under HSN 8504?

Products classified under HSN code 8504 include:

• Electrical step-up/step-down transformers
• Distribution transformers for power grids
• Static converters (UPS, inverters, rectifiers)
• Ballasts for discharge lamps and tubes
• Inductors and choke coils used in electronics
• Battery chargers and voltage stabilizers
• Components and accessories for above items.​

Explore Gimbooks HSN/SAC code & GST Rate finder

Key Exemptions Under GST for HSN 8504

• No broad exemption for electrical transformers, inductors, converters, or accessories.
• 5% concessional GST rate applies only to notified goods (mostly ballasts or small transformers for public utility or energy-saving schemes).
• Standard sales and imports are taxed at 18%.

Input Tax Credit (ITC) Rules for Electrical Transformers

Full ITC can be claimed by manufacturers, contractors, and vendors purchasing transformers and accessories for business, resale, or industrial use.

ITC allowed if:

• Goods are used for taxable business activities.
• GST invoice mentions correct HSN code (8504).
• Purchases are recorded in regular GST returns.

ITC NOT allowed if:

• Goods purchased for personal/residential use.
• Goods installed as immovable property not used for further supply.

GST on Transformer Billing: Practical Scenarios

1. Industrial sale: Transformer reseller bills at 18% GST under HSN 8504 for standard supplies.
2. Government projects: Ballasts or select transformers for tendered projects may be charged 5% GST if notified.
3. Electrical shop: Inverters, stabilizers, and battery chargers for commercial stock always billed at 18% GST.

Common Mistakes in Transformer GST Filings

• Using wrong HSN code for non-transformer products.
• Applying concessional 5% GST to standard transformer sales without notification eligibility.
• Forgetting to mention accurate HSN code 8504 on invoices, risking ITC denial.
• Not splitting installation services and product supplies for GST calculation.

Conclusion

Electrical Transformers HSN Code 8504 covers a wide range of products essential for voltage regulation and current conversion.The 8504 hsn code gst rate in 2025 is 18% for most items, with some ballasts and specific transformers qualifying for the concessional 5% rate only under government notification.Accurate code selection helps manufacturers, installers, and resellers stay GST-compliant and maximize ITC on eligible purchases.​

Also check -

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• Hard Disk HSN Code 8471 & GST Rate
• Tiles HSN Code 6907
• Service Charge HSN Code 9983

FAQs: HSN Code 8504 & Transformer GST Rate

What is HSN code 8504?

HSN code 8504 covers electrical transformers, static converters (rectifiers, inverters), inductors, ballasts, and related accessories.

What is the standard GST rate for transformers under 8504?

The usual rate is 18%, with 5% only for notified goods.

Can businesses claim ITC for transformer and inverter purchases?

Yes, if purchased for business, resale, or industrial projects.

Are ballasts or inductors taxed at a lower GST rate?

Occasionally, some ballasts and small transformers qualify for 5% under special government schemes.

Is HSN 8504 applicable to domestic, industrial, and commercial transformers?

Yes, all such transformers and related devices.