GST on LED Lights – Updated Tax Rates & Guide

gst

Key Takeaways

GST is a tax applicable to the sale and supply of goods and services, including LED lights.
In the 47th GST Council Meeting, the Council increased the rate of GST on LED lights from 12% to 18%.
HSN (Harmonised System of Nomenclature) code classifies every product under GST. HSN Code for GST on LED lights is 9405 and 8512.

Goods and Services Tax (GST) applies to all types of electrical goods, including LED lights. LED lights are now a part of daily life as they are used in homes, offices, shops, and even on streets. They are energy-efficient but slightly expensive, and GST makes a noticeable difference in their final price.

Suppose Kavita buys 4 LED bulbs at ₹300 each; the base cost is ₹1,200. At 18% GST, the tax comes to ₹216. So, Kavita pays a total of ₹1,416. This shows how GST directly increases the final cost of LED lighting products.

In this blog, we will explore the current rate of GST on LED lights, HSN Code, the impact of GST on LED lights, and its effect on consumers and businesses.

Current Rate Of GST On LED Lights

The GST rate on LED bulbs, tubes, and fittings has changed since the introduction of GST. Initially, LED products attracted 12% GST. However, in the 47th GST Council Meeting, the government revised the rate to 18%. The following table highlights GST on LED lights:

Type	GST Rate
Household or industrial LED bulbs, tubes, panels, and decorative fittings.	18%
Automotive LED lamps, headlights, tail lamps, and signalling lights.	18%

From the above-mentioned table, you can see that now you need to pay 18% GST on LED lights. Higher GST rates make LEDs a bit expensive for both individual buyers and bulk purchasers.

Bonus Tip: Did you know that in the 56th GST Council Meeting, the Council removed two slab rates (12% and 28%) and simplified it to a two-slab structure (5% and 18%).

HSN Code For LED Lights

Every product under GST is classified with an HSN (Harmonised System of Nomenclature) code, including LED lights. The following table shows the HSN code for LED lights:

Type	HSN Code
Household or industrial LED bulbs, tubes, panels, and decorative fittings.	9405
Automotive LED lamps, headlights, tail lamps, and signalling lights.	8512

The above-mentioned table helps you to identify the correct classification while filing GST returns or preparing invoices.

Impact Of GST On LED Bulbs And Tubes

The shift from 12% to 18% GST has affected buyers, businesses, and even government projects. The rise may look small on paper, but it adds up when you calculate larger quantities.

Suppose a family buys 6 LED bulbs priced at ₹250 each and 2 LED tube lights at ₹600 each. The impact of GST becomes clear when the bill is calculated. The following table shows this:

Item	Quantity	Price per unit	Total base price	GST (18%)	Final price
LED Bulbs	6	₹250	₹1,500	₹270	₹1,770
LED Tube Lights	2	₹600	₹1,200	₹216	₹1,416
Total	-	-	₹2,700	₹486	₹3,186

From the above-mentioned table, you can see that the family ends up paying ₹486 extra only as GST. This shows how tax increases the overall expense.

Effect On Consumers And Businesses Of GST On LED Lights

The rise in GST has a direct impact on consumers as well as businesses that use LED lighting on a larger scale. The following table shows this effect:

Aspect	Consumers (Household Buyers)	Businesses (Bulk Buyers or Contractors)
Purchase Quantity	Small, usually a few bulbs or tubes.	Large, hundreds or thousands of units.
The effect of 18% GST	Adds a noticeable amount to each purchase.	Increases overall project or operational costs.
Example	4 LED Bulbs with a base price of ₹250 and with 18% GST, make a total bill of ₹1,180.	500 LED Panels with a base price of ₹600 and with 18% GST, make a total bill of ₹3,54,000.
Recovery through ITC	Not applicable	Can claim ITC to offset tax liability.

This table highlights how GST creates a heavier burden on households directly, while businesses can manage some of the cost through ITC, but still face increased cash flow needs.

Conclusion

LED lights are now taxed at 18% GST, a rate that has increased their overall cost compared to years before 2022, when the GST on LED lights was 12%.

While the government aimed to bring uniformity and collect higher revenue, you can see the effect in household budgets, business projects, and industrial contracts.

For individuals, it means paying more for each bulb or tube. For businesses, it means higher upfront costs, though the Input Tax Credit can balance some of it.

Overall, GST on LED lights continues to play a significant role in shaping the price of one of the most widely used products today.

FAQs

1. Does GST apply to LED streetlights and government projects?

Yes, GST at 18% is charged on LED streetlights, even if the supply is for government projects. The supplier must add GST in the bill as per law.

2. Can contractors claim Input Tax Credit on LED street lights?

Contractors registered under GST can claim Input Tax Credit on the tax paid for LED street lights, provided they use them in taxable works contracts.

3. How does GST on LED lights affect construction projects?

Since large numbers of LED fittings are required in construction, GST increases the overall purchase cost and raises the initial cash outflow for the builder.

4. Can exporters of LED lights get a GST refund?

Yes, exporters are eligible for GST refunds as exports are treated as zero-rated supplies under GST. This ensures LEDs exported are not taxed twice.

5. How does GST affect builders buying LED fittings in bulk?

Builders pay higher upfront costs due to 18% GST on bulk LED fittings, though they can later set it off using Input Tax Credit while filing GST returns.

6. Can housing societies claim GST credit on LED lights?

Housing societies registered under GST and engaged in taxable services may claim ITC on LEDs purchased for common areas like lobbies or parking.

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