Electric Water Heaters - GST Rates HSN Code 8516

Electric water heaters have become an essential part of our daily lives. They provide hot water for our bathing and cleaning needs, especially during the colder months. As a Small and Medium Business owner or Startup founder in India, it's important to understand the GST rates and HSN code for electric water heaters.

GST Rates for Electric Water Heaters:

Electric water heaters fall under the category of electrical appliances and are taxed at a rate of 18%. This rate applies to both instant and storage electric water heaters.

HSN Code for Electric Water Heaters:

HSN stands for Harmonized System of Nomenclature and is used to classify goods under GST. The HSN code for electric water heaters is 8516. This code is used to identify the product and determine the applicable GST rate.

It's important to note that the HSN code for electric water heaters may vary depending on the type of heater. For example, the HSN code for solar water heaters is 84191920, and for gas water heaters is 84191190.

As a business owner or startup founder, it's important to ensure that you're charging the correct GST rate and using the correct HSN code for your products. Failure to do so can result in penalties and fines from the tax authorities.

In addition to understanding the GST rates and HSN code for electric water heaters, it's also important to consider the energy efficiency of the product. Electric water heaters are known to consume a significant amount of electricity, which can lead to higher electricity bills.

To combat this, it's important to choose an energy-efficient electric water heater with a high star rating. This will not only help you save on electricity bills but also reduce your carbon footprint.

In conclusion, as a Small and Medium Business owner or Startup founder in India, understanding the GST rates and HSN code for electric water heaters is essential to ensure compliance with the tax authorities. It's also important to consider the energy efficiency of the product to save on electricity bills and reduce your carbon footprint.