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Published on:

January 29, 2025

Alankar Mishra

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Basics of GST

GST Rates and HSN code 8512 for Electrical Lighting Equipment

GST or the Goods and Services Tax has made India’s indirect tax easier to manage since multiple taxes have been amalgamated into one. The system is however complicated and each business needs issues a comprehensive understanding of GST rates, HSN codes, and most importantly, tax accuracy. The HSN code for businesses related to 8512 is aimed at dealing with electrical lighting equipment. This article serves as your one-stop solution provider for everything related to the electrical lighting category, from GST rates to HSN code 8512.

What is HSN Code 8512?

HSN code 8512 covers electrical lighting devices and signalling equipment, windscreen wipers, defrosters, and vehicle-mounted demisters used in vehicles, aircraft, and ships under the GST tariff Chapter 85 on electrical machinery and equipment.

Inclusions Under HSN Code 8512:

Vehicle-mounted lighting devices like tail lamps and headlights.

Emergency warning light indicators.

Demisters and defrosters.

Electrical sounding horns and signalling devices.

GST Rates for HSN Code 8512

The tax rates under GST are grouped according to product categories into slabs like 28%, 18%, 12%, 5%, and 0%.

Class 8512 is usually covered under HSN with an applicable GST of 18% unless exempted or some other lower slab is applicable. The rates of GST applicable are as follows:

GST Rate	Items
18% GST	Most electrical lighting equipment like LED headlights, taillights, and signal lamps.
	Defrosters and demisters.
	Electrical sound signalling devices like horns.
5% GST	Special exemptions for some energy-efficient or eco-friendly lighting equipment (subject to government updates).

Tip: Always refer to the latest GST notifications to stay updated on rate revisions or exemptions.

Importance of Accurate HSN Code Usage

While filing a GST, one is obligated to use the correct HSN code and in this case, the right code is 8512. That ensures:

‍1. Compliance: The tax authorities do not impose any penalties or other scrutiny measures which one seeks to avoid

‍2. Accuracy: Avoids incorrect calculations of tax and claims for income tax input credits (ITC)

‍3. Transparency: Eases the conduct of trade across state boundaries and even international frontiers.

Additionally, overstating the threshold can lead to discrepancies during the GST audits creating delays or additional payments in penalties.

Applications of Electrical Lighting Equipment

Various electrical light fittings classified under HSN 8512 are widely used in:

1. Automobiles

Every automobile, be it a compact car or a big truck, is fitted with various controlling systems that include lighting systems which are critical for road use. Headlights allow cars to steer safelywards by illuminating the road ahead and making the automobile visible to other drivers. When the vehicle is parked, there light at the back turns on to signal the cars following that they should slow down their speed. When brake lights are in use, the yellow lights set on the upper side of the back window are further used to signal the change of direction. All other automobiles on the road can only be at ease with the use of these gadgets. In addition, they are mandatory to have and use for any moving motor vehicle.

2. Aviation

The dangers of operating aircraft and helicopters during flight operations compel the installation of lighting systems on those airborne vehicles. Such systems include navigation, strobes and beacons, landing, and taxi lights. Strobe and beacon lights enhance aircraft visibility to other pilots and ground controllers while taking off, landing, or taxiing, especially on a cloudy night. The same lights also help the pilots and ground controllers to see the aircraft from a distance. Landing and taxi lights allow other pilots to see the runway scales along with the markers in the aircraft. The safety of passengers aboard is of utmost importance and thus helicopters and aircraft lights, along with many other safety measures, play a vital role in avoiding mid-air collisions and the safe functioning of the airport.

3. Maritime

The lighting on boats and ships is designed to prevent collisions while navigating from one point to another. Signal lights or navigation lights are used to display the ship's size, type, and direction of travel to other vessels. For instance, red and green side lights identify the port and starboard of the ship, while a white stern light is found at the rear of the vessel. Larger vessels have masthead lights which they use to indicate their movement. In addition to these standard lights, specialized lights such as flashing lights or patterns of coloured lights, are used to send specific messages, like distress signals or restricted manoeuvrability. The marine industry relies on applying these lights for collision avoidance and safety measures during travel.

4. Emergency Services

Services in case of an emergency, including ambulances, police cars, and fire trucks, have warning signal lights to alert pedestrians and other vehicles. When these lights are engaged, they normally blink red, blue, amber or a combination of those colours. The blinking colours indicate the vehicle has the right of way. For example, red flashing lights are used by fire trucks to signal an emergency. Police cars use a set of lights to signal that they are pursuing a suspect or when there is an accident or a hazard present. These lights, when used alongside sirens, play a crucial part in saving lives and responding appropriately to emergencies.

GST Compliance Checklist for Businesses

To ensure smooth GST filing and compliance when dealing with electrical lighting equipment under HSN code 8512, follow these steps:

Category	Details
Classification of Goods	Verify the product type and ensure accurate classification under HSN code 8512.
GST Rate Verification	Confirm the applicable GST rate (typically 18%, but check for exceptions).
Invoice Details	Mention HSN code 8512 on invoices.
	Highlight GST rates separately.
Input Tax Credit (ITC)	Maintain records of GST paid on purchases.
	Use HSN code 8512 for claiming ITC against business expenses.
GST Returns	File accurate monthly or quarterly GST returns (GSTR-1, GSTR-3B).
	Reconcile input and output taxes using HSN-wise reporting.

Recent Changes in GST Rates for Electrical Lighting Equipment

To stimulate particular sectors or goods, the GST Council modifies tax percentages regularly. Recent changes include:

‍1. Enhancing Energy Efficiency: A lower GST for LED or other energy-efficient lighting equipment.

‍2. Encouraging Indigenization: Lowered GST for some locally produced parts.

Every business needs to be aware of such updates by checking the notifications of the GST Council or talking to an accountant.

Impact of GST Rates on the Electrical Lighting Industry

The electrical lighting industry has had the following implications due to the implementation of the 18% GST rate:

1. Price Competitiveness: Efforts of local producers to compete with foreign goods are hampered by tax equalization.

2. Growth of Eco-Friendly Products: Innovativeness among manufacturers is stimulated by lowered GST for energy-efficient lighting.

3. Revenue Impact: The introduction of a normal GST rate increases the ease of tax computation and brings the desired openness in transactions.

Conclusion

Doing business in India legally requires understanding the GST rates applicable and HSN code 8512 which refers to electrical lighting equipment. It is important to understand the classification for accurate invoicing as well as changes in GST parameters. With the above-mentioned guidelines, businesses can optimize their GST filing to be compliant and as a result, ease trade and financial operations.

FAQs

1. What is the GST rate for LED headlights under HSN code 8512?

The tax applicable on the LED headlamps is computed as 18% within HSN Code 8512.

2. Are there any exemptions for electrical lighting equipment under HSN 8512?

Undoubtedly, certain green lighting gadgets could be included under the 5% GST threshold. For detailed information, verify the official site.

3. Can I claim an Input Tax Credit (ITC) on goods classified under HSN code 8512?

GST incurred on HSN 8512 items can be claimed as ITC by all businesses as long as they are used in business activities.

4. How do I ensure correct GST filing for HSN code 8512?

To prevent any discrepancies, ensure that the correct HSN code, GST rate, as well as tax details on invoices, are separated.

5. Does the GST rate differ for imported lighting equipment under HSN code 8512?

GST rates are universal for both local and foreign products, though separate import tariffs may be incurred.

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