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Renewable Energy12% GST RateUpdated July 2026

Calculate GST for Solar Panels

Calculate GST on solar modules, photovoltaic panels, cells, and solar power equipment.

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Quick Summary

HSN/SAC Code#8541
Tax CategoryRenewable Energy
ITC EligibilityEligible for commercial rooftop solar installations
Effective DateOctober 1, 2021
Applicable Tax
12%
Standard GST RateHSN Code 8541

GST Rate Explanation

To encourage green energy, solar panels and renewable components carry a concession rate of 12%. This rate was increased from 5% to solve raw material input tax mismatches.

Calculation Mode
Net Amount (Before Tax)₹10,000.00
CGST (Central Tax) (6.0%)₹600.00
SGST (State Tax) (6.0%)₹600.00
Total GST (12%)₹1,200.00
Gross Amount₹11,200.00

Visual Tax Split & Collection Rules

Intrastate Split Allocation
CGST (Central Tax): 6.0%
SGST (State Tax): 6.0%

Within State (CGST + SGST)

When supply is within the same state (intrastate), the CGST and SGST are collected. The total tax is split 50/50 between Central and State governments.

Across States (IGST)

When supply spans across states (interstate), a single Integrated GST of 12% is collected in full by the Central government before allocation.

GST Rate Structure Slabs

Tax SlabCGST (Central)SGST (State)IGST (Integrated)Notes
0%0.0%0.0%0.0%Exempted / Nil rated goods
5%2.5%2.5%5.0%Essential items & services
12%6.0%6.0%12.0%Standard reduced rate items
18%9.0%9.0%18.0%Standard general rate items
28%14.0%14.0%28.0%Luxury / Sin goods & services

GST Calculation Examples

Residential solar panel kit

Add GST (Exclusive)

Formula: Amount + (Amount × Rate%)

Base Amount: ₹35,000.00

GST (12%): ₹4,200.00

Total: ₹39,200.00

Remove GST (Inclusive)

Formula: Amount − (Amount / (1 + Rate%))

Total Amount: ₹35,000.00

Base Amount: ₹31,250.00

GST Included: ₹3,750.00

5kW commercial rooftop solar installation

Add GST (Exclusive)

Formula: Amount + (Amount × Rate%)

Base Amount: ₹2,50,000.00

GST (12%): ₹30,000.00

Total: ₹2,80,000.00

Remove GST (Inclusive)

Formula: Amount − (Amount / (1 + Rate%))

Total Amount: ₹2,50,000.00

Base Amount: ₹2,23,214.29

GST Included: ₹26,785.71

Frequently Asked Questions

Government References & Notifications

Tax Disclaimer Notice

Associated execution services for solar plants might carry different service tax rates (usually 18%).

Last updated: July 2026