The HSN code for electrical transformers in India is 8504. This heading covers all types of transformers, static converters, and inductors. GST rate is uniformly 18% for most transformer categories under Chapter 85.
What is the HSN code for transformers in India?
Heading 8504 under the CGST Tariff covers electrical transformers, static converters and inductors. Indian firms use this code to classify power, distribution and instrument transformers. The 8504 heading applies to both domestic and imported goods. Customs declarations and GST invoices must show the correct 8-digit code matching the equipment on the Bill of Entry. This keeps GSTR-1 and GSTR-3B reconciliation clean.
Which specific 8-digit HSN codes apply to different types of electrical transformers?
Classification under 8504 depends on dielectric type and power handling capacity. The table below lists the active 8-digit codes cited in the latest CBIC notifications.
Figure 1: HSN 8504 Transformer Classification — BCD and IGST rates
| Transformer Type | 8-Digit HSN Code | GST Rate | Power Handling Capacity | Typical Applications |
|---|---|---|---|---|
| Liquid dielectric transformers | 85042100 | 18% | ≤ 650 KVA | Small distribution, rural electrification |
| Liquid dielectric transformers | 85042200 | 18% | > 650 KVA but ≤ 10,000 KVA | Medium distribution, industrial feeders |
| Liquid dielectric transformers | 85042300 | 18% | > 10,000 KVA | Grid substations, heavy industry |
| Other transformers | 85043100 | 18% | ≤ 1 KVA | Control circuits, instrument transformers |
| Other transformers | 85043200 | 18% | > 1 KVA but ≤ 16 KVA | Small power supplies, telecom rectifiers |
| Other transformers | 85043300 | 18% | > 16 KVA but ≤ 500 KVA | Residential complexes, light industry |
| Other transformers | 85043400 | 18% | > 500 KVA | Large power supplies, heavy industrial |
Static converters and inductors often ship alongside transformers. Confirm dielectric category and nameplate data before filing.
What is the GST rate for transformers under HSN 8504?
The GST rate is 18% for goods classified under heading 8504. No recent CBIC notification alters this. IGST and CGST apply at 9% each for intra-state supplies. Importers pay IGST at 18% plus basic customs duty. The rate holds for new and refurbished units.
How do I find the correct HSN code for power transformers, distribution transformers, or instrument transformers?
Start with the nameplate and technical datasheet. Note dielectric type and rated KVA. Check whether the unit exceeds 10,000 KVA or 1,000 KVA thresholds. Match figures against the 8-digit list above. For instrument transformers, verify whether the unit falls below 1 KVA or within higher brackets. Consult the CBIC GST tariff for chapter notes. Request a classification ruling before goods arrive if uncertain. Do not rely on 4-digit or 6-digit codes for Bills of Entry. Use the full 8 digits.
What happens if I use the wrong HSN code for transformers on invoices or Bills of Entry?
An incorrect code creates gaps between GSTR-1 and GSTR-3B. The department may issue a notice under Section 73 or 74 of the CGST Act. Penalties start from Rs. 10,000 or the tax amount, whichever is higher. Wrong codes delay customs clearance. Reclassification triggers additional duty demands. Keep test reports and manuals to defend the declared code.
Frequently Asked Questions
What is the 8-digit HSN code for a 1000 KVA distribution transformer?
85042200 when liquid dielectric type, otherwise 85043300 if dry-type.
Does HSN code change based on whether the transformer is imported or made in India?
No. The HSN code under 8504 remains identical regardless of origin. Import duty and IGST differ though.
Is GST on transformers always 18%?
Yes, currently 18% for all goods classifiable under heading 8504.
What is the penalty for incorrect HSN code on a tax invoice?
Mismatch during GSTR-1/3B reconciliation may draw a notice under Section 73 or 74. The fine starts from Rs. 10,000 or the tax amount, whichever is higher.
Can I use a 4-digit or 6-digit HSN on my GST invoice?
For GST invoices, HSN digit requirements depend on turnover under Rule 46: 4 digits for taxpayers up to Rs. 5 crore on B2B invoices, and 6 digits for those above. For import Bills of Entry, use the correct 8-digit Customs Tariff item.
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