HSN Code for Solar Panels: A Complete Guide for Businesses and Homeowners

Solar energy is rapidly becoming a key source of renewable power in India. As more households, industries, and government projects adopt solar power, understanding the regulatory framework around solar equipment becomes crucial. One important aspect is the HSN code for solar panels, which affects taxation, import/export, and compliance under the Goods and Services Tax (GST) system. This article provides a comprehensive guide to HSN codes for solar panels, their significance, and how they impact solar businesses and consumers.

What is an HSN Code?

HSN (Harmonized System of Nomenclature) is an internationally recognized system for classifying goods. Developed by the World Customs Organization, HSN codes make it easier to standardize product categorization for taxation, trade, and customs purposes.

In India, HSN codes are used under the GST regime to determine the applicable tax rate for goods. Every product, including solar panels, has a unique HSN code that businesses must quote on invoices, purchase orders, and export/import documents.

HSN Code for Solar Panels

Solar panels, also known as solar photovoltaic (PV) modules, have a specific HSN code under the GST system. The HSN code for solar panels is:

HSN Code: 8541 – “Diodes, transistors, and similar semiconductor devices; photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LEDs).

Subcategories include:

• 8541 40 11 – Solar cells, photovoltaic cells (not assembled in modules).
• 8541 40 20 – Photovoltaic modules or panels.

This classification helps businesses and authorities determine the correct GST rates and ensures smooth trade both domestically and internationally.

GST Rates on Solar Panels

The GST rates for solar panels have evolved over the years. As of 22 September 2025, the GST on solar panels and associated equipment is as follows:

Importance of Correct HSN Code for Solar Panels

1. Legal Compliance: Quoting the correct HSN code ensures your business complies with GST laws and avoids penalties.
2. Smooth Trade & Export: Accurate HSN classification is crucial for customs clearance in case of imports or exports.
3. GST Input Credit: Businesses can claim input tax credit only if the correct HSN code is used in invoices.
4. Financial Clarity: Proper HSN codes provide transparency in pricing, tax calculation, and accounting for solar projects.

HSN Code for Related Solar Components

Apart from solar panels, other components in a solar power system also have separate HSN codes:

• Solar Inverters: 8504
• Solar Batteries: 8507
• Mounting Structures: 7308 (steel), 7610 (aluminum)
• Cables and Wires: 8544, 7604
• Solar Pumps: 8413

These codes help distinguish between different elements of a solar system for taxation and compliance purposes.

How to Use HSN Codes in Solar Businesses

1. Invoice Generation: Include the HSN code for each product on invoices to maintain GST compliance.
2. Accounting Software: Modern accounting software allows automated HSN code integration for solar products.
3. Government Tenders: For government projects like PM Surya Ghar Muft Bijli Yojana or KUSUM Scheme, quoting correct HSN codes is mandatory.
4. Import/Export Documentation: Ensure HSN codes are correctly mentioned to avoid customs delays.

Conclusion

The HSN code for solar panels (8541) is a critical aspect for manufacturers, distributors, and consumers in India. Understanding these codes ensures legal compliance, proper GST filing, and smoother business operations. As solar energy adoption grows in India, staying updated with HSN codes and GST rates will help businesses save costs, claim input tax credits, and participate confidently in government-backed solar initiatives.

By using the correct HSN codes, solar businesses and homeowners alike can take advantage of tax benefits, subsidies, and hassle-free transactions, contributing to a greener and more sustainable future.