GST Rates and HSN Code 8405 for Gas Generators

Gas generators are a systematically highly significant machine in certain industries, and also a substitute power source in case of power outages or as independent power sources in certain applications. HSN Code 8405 gas generators are used with the aim to transform fuel gases into mechanical power, and the same is used in electricity generation or certain other industrial applications. GST Rate on Gas Generators is crucial for businesses and procurement companies in order to ensure tax compliance and reduce the procurement cost.

GST Rate on Gas Generators (HSN Code 8405)

HSN Code 8405 comprises gas generators such as producer gas, water gas, and acetylene gas generators and equipment of the same nature. GST on generators differs depending on their application and designs. Generators under this code are subject to an 18% tax. This follows the tax levied on power generation machinery and equipment.

It should be mentioned here that the tax rate of GST on gas generators is uniform across all states for ease of uniform taxation in the country. But there may be a shift in government policies or amendment in GST legislation to implement tax rate revisions in the future. Business firms and industries utilizing gas generators should remain updated about existing tax laws for compliance and cost benefits.

Secondly, gas generators purchased by companies for business purposes should check whether they can avail Input Tax Credit (ITC) benefits. If ITC is available, it will reduce the cost burden of companies to a large extent and make gas generators a good investment.

HSN Code	Description	GST Rate	Cess	Effective Date
8405	Producer gas or water gas generators, with or without their purifiers; acetylene gas generators and similar water process gas generators, with or without their purifiers	18%	0%	01/07/2017
840510	Producer gas or water gas generators, with or without their purifiers; acetylene gas generators and similar water process gas generators, with or without their purifiers	18%	0%	01/07/2017
84051010	Producer gas or water gas generators, with or without their purifiers; acetylene gas generators and similar water process gas generators, with or without their purifiers - Producer gas or water gas generators, with or without their purifiers; acetylene gas generators and similar water process gas generators, with or without their purifiers	18%	0%	01/07/2017
84051020	Producer gas or water gas generators, with or without their purifiers; acetylene gas generators and similar water process gas generators, with or without their purifiers - Producer gas or water gas generators, with or without their purifiers; acetylene gas generators and similar water process gas generators, with or without their purifiers	18%	0%	01/07/2017
84051090	Producer gas or water gas generators, with or without their purifiers; acetylene gas generators and similar water process gas generators, with or without their purifiers - Producer gas or water gas generators, with or without their purifiers; acetylene gas generators and similar water process gas generators, with or without their purifiers	18%	0%	01/07/2017
84059000	Producer gas or water gas generators, with or without their purifiers; acetylene gas generators and similar water process gas generators, with or without their purifiers - Parts	18%	0%	01/07/2017

Advantages of Gas Generators

There are numerous advantages of gas generators that cause them to be the preferred one in industrial, commercial, and even home usage. Some of the most important advantages are:

‍Economical Fuel Utilization: Gas generators employ natural gas or other gases as fuel, and are less expensive than petrol or diesel. It is thus less expensive for companies and individuals employing them to generate electricity. Organizations utilizing gas generators save on fuel in the long run.

‍Environmentally Friendly: One of the key benefits of gas generators is that they have a lower environmental footprint. They emit less than diesel or petrol generators and are hence a green source of energy. Less emission keeps the air clean, and hence gas generators are an apt option for green industries and companies.

‍Efficient and Reliable Power Supply: Gas generators ensure that smooth and constant power supply is provided, which is appropriate for business companies with the requirement of continuous electricity supply. They are more efficient than traditional generators with very low inefficiencies and long lives. The efficiency rate never falls even during extended periods of use, offering continuous power supply to business companies and industries with a high reliance on electricity.

‍Low Maintenance Requirements: Compared to diesel generators, gas generators are simple to maintain. They have less wear and tear, hence less repair expense and longer life. This is convenient for use where there is continuous need for power with less stoppage for maintenance.

‍Flexible Uses: Gas generators have extensive application in industrial plants, hospitals, business organizations, and homes. Their use of power as simple means of energy as well as a stand-by energy increases their need. They may be used by organizations to function as stand-by energy in event of sudden emergencies or auxiliary energy where the supply of energy is not guaranteed.

‍Quieter Operation: Gas generators are less noisy to operate than diesel generators. This being the situation, they are being used where there is a need to keep noise pollution at bay, i.e., homes, offices, and hospitals. Less noise with ease of handling makes it an easy-going unit to operate, thus becoming a potential commercial venture.

Weaknesses of Gas Generators

Even though gas generators are a line of benefits, they have certain drawbacks as well. Talking about the drawbacks makes companies make rational decisions because they invest in them.

‍Higher Initial Investment: The price of a first gas generator is relatively costly compared to a diesel generator. This could be a weakness for small business companies and people who do not want to incur extra expense. The fuel saving and maintenance charges saved in the long run will generally cover the extra initial price.

‍Fuel Supply Dependence: Gas generators require a steady supply of gas or other gaseous fuels. Individuals living in areas where there is not enough supply infrastructure for gas may not have a steady supply of fuel. Individuals that wish to utilize companies based on gas generators must establish if there is a steady supply of gas in the area before investing.

‍Installation and Storage Issues: Installation of a gas generator must have suitable infrastructure, which can be storage tanks and pipelines. It will be inconvenient in small space locations or where there are stringent regulatory requirements. Companies should look at the cost of installation and compliance with local norms before they make a choice of a gas generator.

‍Compliance with Regulation: Organizations that use gas generators must abide by environmental and safety regulations, so there is extra paperwork and trouble. Adhering to such legislations avoids legal proceedings and penalties for misuse or installation of gas generators.

Conclusion

Gas generators under the HSN Code 8405 are charged 18% GST, and that is applicable across India. They have uses everywhere in industries since they are affordable, efficient, and eco-friendly. Though there are several advantages, additional initial capital and policy compliance need to be considered by the companies too. Following taxation policy and generator technology advancement can make the power generation plans of the companies as simple as possible. Overall, gas generators are a perfect investment for the companies and business establishments looking for constant power supply at reduced operating cost.

FAQs

How much is the GST on gas generators under HSN Code 8405?

The GST on gas generators under HSN Code 8405 is 18%.

Are gas generators more economical than diesel generators?

Yes, gas generators are more economical to run as natural gas is less expensive than diesel fuel. Moreover, their maintenance charge is in proportionately lesser amounts, which is a saving in the long term.

Is a gas generator an effective primary source of power?

Yes, a gas generator can be an effective primary source of power in industries and hospitals with a continuous supply of fuels. They particularly best suit factories, hospitals, and business offices with a continuous supply of power needed.

Do gas generators require constant maintenance?

No, gas generators will be lower maintenance than diesel generators and therefore lower long-term expenses. Regular maintenance does keep them in their best state and operational mode for years.

Must gas generators comply with environmental standards when using them?

Yes, there is an obligation for gas generator manufacturers to meet environmental and safety standards in the quest for legality as well as sustainability. Environmental protection as well as operational efficiency is ensured through installation and emissions standards compliance.