GST on External Batteries sold along with UPS Systems/ Invertor
The CBIC issued the Circular No. 163/19/2021-GST on 06th October, 2021 clarifying on various issues including GST applicability on external batteries sold along with UPS Systems/ Invertor. The Circular reads as follows:
- References have been received seeking clarification about whether, ‘UPS Systems/ invertor sold along with batteries as integral part’ are classified under heading 8507 at 28% GST or under 8504 at 18% GST.
- The matter has been examined and it is observed that even if the UPS/ invertor and external battery are sold on the same invoice, their price are separately known, and they are two separately identifiable items.
Thus, this constitutes supply of two distinctly identifiable items in the invoice. Therefore, it is clarified that in such supplies, UPS/ invertor would attract GST rate of 18% under heading 8504, while external batteries would attract the GST rate as applicable to it under heading 8507 (28% for all batteries except lithium-ion battery).
Source: CBIC Circular No. 163/19/2021-GST
