GST on Solar Equipment in India 2025: Complete Rate Card & Invoicing Guide

The 5% vs 12% Confusion — Settled

CBIC Notification 24/2018 (still in force in 2025) creates the famous "70:30 rule": in a composite supply solar EPC contract, 70% is treated as goods @12% and 30% as services @18%, blending to an effective 8.9%. But the dominant interpretation post-2024 amendments is 5% flat for residential rooftop projects.

The 2025 Rate Card

GST-Compliant Invoice Template

Every solar invoice in India must show:

1. GSTIN of supplier and recipient
2. HSN/SAC code for each line item
3. Place of supply
4. Reverse charge applicability
5. Separate CGST + SGST (intra-state) or IGST (inter-state)
6. Signature / digital signature

Doctor Solar Wala's invoicing engine auto-applies the correct rate based on project type (residential vs C&I) and generates legally valid GST invoices in one click.

Common Mistakes That Trigger GST Notices

• Charging 5% on commercial projects (incorrect — should be 12%)
• Missing HSN codes on quotations
• Mixing battery + panel under one HSN (battery is 18%, separate it)
• Forgetting reverse charge for unregistered vendor purchases

The Compliance Stack

For companies doing >₹50L turnover, automate with:

• E-invoicing (mandatory >₹5 Cr turnover)
• GSTR-1 + GSTR-3B monthly
• Reconciliation with vendor invoices

See how our finance module handles this →