Question 1

1. What GST rate applies to EV charging in India?

Accepted Answer

Two different rates apply depending on what's being sold. EV chargers and charging-station hardware (HSN 8504) carry 5% GST, per the 36th GST Council meeting's cut effective 1 August 2019. The charging service itself — the session or per-kWh revenue a CPO bills for — has been classified by the Karnataka AAR as a supply of service under SAC 998714, taxable at 18%.

Question 2

2. What is the correct HSN code for an EV charger?

Accepted Answer

EV chargers and charging stations fall under HSN 8504, specifically subheading 85044030 (static converters/battery chargers for electrically operated vehicles), taxed at 5%. This code applies to the hardware sale or installation — not to the ongoing charging-service revenue billed to drivers or fleets.

Question 3

3. What SAC code should a CPO use for charging-service invoices?

Accepted Answer

SAC 998714 ("maintenance and repair services of transport machinery and equipment") is the classification the Karnataka AAR applied to EV battery charging in Order No. KAR ADRG 24/2023, taxed at 18% with input tax credit available. Most billing platforms should default session and per-kWh revenue to this code rather than the hardware's HSN 8504.

Question 4

4. Is electricity supplied through an EV charger exempt from GST?

Accepted Answer

Electrical energy itself (HSN 2716) is exempt from GST under Notification No. 2/2017-Central Tax (Rate) — but that exemption covers electricity as a standalone commodity, not the composite charging service a CPO delivers through owned infrastructure. Splitting an invoice into an "exempt electricity" line and a taxable "service fee" line doesn't change the underlying classification.

Question 5

5. Can a fuel retailer put petrol and EV charging on one invoice?

Accepted Answer

No. Petrol and diesel are taxed outside the GST system through state VAT and central excise duty, while EV charging is a GST-taxable service — two different tax regimes can't be consolidated onto a single tax invoice. Forecourt billing systems need separate invoice types or clearly delineated tax treatment for each revenue stream.

gst compliance

GST On EV Charging: HSN/SAC Codes And Invoicing Rules CPOs Get Wrong