HSN and SAC codes

HSN and SAC codes for solar installers

Name: HSN and SAC codes for solar installers
Creator: SimpleERP
License: https://simpleerpsoftware.com/legal/terms

A rooftop job puts modules, inverters, structures, cable and labour on one bill. Here are the codes each line usually carries and the rate that goes with them.

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In short

Solar installers bill panels under HSN 8541, inverters under 8504 and installation under SAC 9954. SimpleERP keeps the code on each product, prints it on every invoice line and builds the HSN summary for GSTR-1.

Lakshmi Steel Furnitures

14 Avinashi Road, Peelamedu, Coimbatore 641004

GSTIN 33AAACL1234A1ZG

Tax invoice

INV-2026-27-0213

Date 03/10/2026

Bill to

Ravi Stores

Big Bazaar Street, Coimbatore 641001

GSTIN 33ABCPR4821K1ZN

Place of supply

Tamil Nadu (33)

Due 02/11/2026

Item	HSN	Qty	Rate	Taxable
Steel rack 4 shelf	9403	2	4,990.00	₹9,980.00

Scan to pay by UPI

lakshmisteel@okhdfc

Taxable value: ₹9,980.00
CGST 9%: ₹898.20
SGST 9%: ₹898.20
Round off: −0.40
Total: ₹11,776.00

Amount in words: Eleven thousand seven hundred seventy-six rupees only

The data

The codes and usual rates

Code	Goods or service	Usual GST rate	Notes
854143	Solar photovoltaic modules (cells assembled in modules)	5%	Cut from 12% on 22 September 2025 under the renewable energy devices entry.
854142	Solar photovoltaic cells, not assembled	5%	Same entry as modules; most installers buy modules, not loose cells.
8504	Solar inverters and power conditioning units	5%	When sold as a solar power device; a general inverter or UPS is 18%.
841919	Solar water heaters	5%	Listed with the renewable energy devices; also cut from 12%.
7308	Steel module mounting structures	18%	Structures sold on their own; check if they form part of a complete system.
7610	Aluminium mounting rails and structures	18%	Same treatment as steel structures.
8544	DC and AC solar cable	18%	Insulated wire and cable.
8536	MCBs, isolators, fuses and MC4 connectors	18%	Switching and protection gear up to 1,000 volts.
8537	ACDB and DCDB boards	18%	Distribution boards and panels.
850760	Lithium-ion batteries	18%	Off-grid and hybrid systems.
850720	Lead-acid batteries	18%	Moved from 28% on 22 September 2025.
902830	Net meters and energy meters	18%	Often bought by the installer for the net metering application.
995461	Electrical installation services (wiring and fitting)	18%	Labour billed separately from the goods.
9954	Works contract for a system fixed to the building	check	Supply and installation together; a notified split values part as goods and part as services.
998719	Maintenance and repair of other machinery (solar AMC)	18%	Confirm the six digits against the SAC list for your contract.
996791	Goods transport agency services for road transport	5% under reverse charge, or 18% with credit by option	Freight on panels you pay to a GTA; the recipient often pays the tax.

Usual rates after 22 September 2025, verified on the date shown. The rate depends on the exact description and the notification, not the code alone. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.

Sources: CBIC: classification of services (SAC), CBIC: Customs tariff (HSN chapters), GST Council: rate changes effective 22 September 2025. Verified 10 October 2026.

Which HSN and SAC codes does a solar installer use?

A solar installer touches both sides of the tariff. The goods are modules, inverters, mounting structures, DC and AC cable, distribution boxes, meters and, for off-grid systems, batteries. The services are the installation itself, the commissioning, and the annual maintenance contract that follows. Goods carry an HSN code and services a SAC code starting with 99, and one invoice can mix both, each line at its own rate.

What changed on 22 September 2025 for solar installers?

The rate changes that took effect on 22 September 2025 moved renewable energy devices from 12% to 5%. That covers solar modules and cells, solar power generating systems, solar water heaters and the inverters and controllers sold as part of them. Structures, cable and switchgear stayed at 18% when sold separately. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.

Update the rate on each product in your product list, not on old invoices; posted invoices keep the rate they were billed at.
Quotes made before the change carry the old rate. Revise the quote as a new draft before converting it to an invoice.
Composite supply and install contracts follow a notified split between goods and services. Check the current split with your CA before pricing an EPC job.

HSN and SAC on invoices and the GSTR-1 summary in SimpleERP

Set the code once on each product or service and it follows every quotation, invoice and credit note.

HSN or SAC on every invoice line, printed on the A4 copy with a code-wise tax summary.
Mixed bills: panels at 5%, structures at 18% and installation at 18% on one invoice, each taxed on its own line.
CGST and SGST or IGST chosen from the place of supply, so a job across the state border is billed correctly.
HSN summary report by code with quantity, taxable value and tax, exported to CSV for your CA. SimpleERP does not file the return.
Goods lines move stock; installation and AMC lines do not.

app.simpleerpsoftware.com/o/lakshmi-steel/accounting/reports

Profit and loss

Apr–Sep 2026

Sales₹18,42,600

Cost of goods sold(₹10,38,900)

Gross profit₹8,03,700

Salaries and wages(₹2,48,000)

Rent(₹72,000)

Power and fuel(₹38,400)

Other expenses(₹32,500)

Total expenses(₹3,90,900)

Net profit₹4,12,800

GST summary

Output tax₹3,31,668

Input tax₹1,75,554

Net payable₹1,56,114

Books locked to 30/06/2026. Postings on or before it are refused.

The HSN summary groups taxable value and tax by code, ready for the HSN table of GSTR-1.

Reverse charge and exemptions that touch solar installers

Most solar work is taxed in the normal way, but a few purchases sit under reverse charge, as notified; check each one with your CA.

Freight paid to a goods transport agency for panels and structures is usually taxed under reverse charge in your hands.
Legal fees from an advocate for a contract dispute fall under reverse charge if your turnover is above the threshold.
Security services for a stored site, bought from a supplier that is not a company, fall under reverse charge.
SimpleERP has no reverse charge flag on invoices; put the reverse charge wording in the invoice notes and post the tax with your accountant.

Sources

Honest limits

What SimpleERP does not do here

Compensation cess. It is not computed on any line.
A reverse charge flag. Use the invoice notes for the wording.
E-invoice IRN, e-way bills and GST return filing. Export the reports and file through your usual route.

FAQ

Questions, answered

What is the HSN code for a solar panel?

Solar modules fall under heading 8541, with photovoltaic cells assembled in modules at 854143 and loose cells at 854142. After 22 September 2025 the usual rate is 5% as a renewable energy device. Confirm the description and rate against the current notification before you bill.

Can I bill panels, inverters and installation on one invoice?

Yes. In SimpleERP one invoice can carry goods lines with HSN codes and service lines with SAC codes, each at its own rate. If the job is a single composite contract, ask your CA whether the notified goods and services split applies instead.

Which SAC code do I use for a solar AMC?

An annual maintenance contract for a solar plant is a maintenance and repair service under group 9987, often billed as 998719 for other machinery and equipment at 18%. Check the exact six digits against the SAC list for what your contract covers.

How many digits of the HSN code must my invoice show?

Currently four digits if your turnover in the previous year was up to ₹5 crore and six digits above that. SimpleERP prints whatever code you set on the product, so set the length your turnover needs.

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