Excise duty on LED light

[Guest]

As per notification no. 12/2016 CE(Tariff) dt 01.03.2015, Sr. 321B, 6% Excise duty applicable on all inputs in use of manufacture of LED light etc. Whether 6% ED applicable on finished goods LED lights also when rate of ED is 12.5% as per tariff.

[Mahir S]

No.

The 6 % ED is applicable only on the inputs that are used in the manufacture of LED lights.

[Ganeshan Kalyani]

The notification states that the duty of 6% is applicable only on inputs used in Manufacturing of LED driver or MCPCB as below.

Chapter

All inputs for use in the manufacture of LED (Light Emitting Diode) driver or MCPCB (Metal Core Printed Circuit Board) for LED lights and fixtures or LED Lamps

[DR.MARIAPPAN GOVINDARAJAN]

6% duty is applicable.

[Rajagopalan Ranganathan]

Sir,

LED lights are classifiable under sub-heading No. 8539 39 10 or 3839 39 90 of I Schedule of Central Excise Tariff Act, 1985. However Vacuum or gas filled bulbs of retail sale price not exceeding ₹ 20 per bulb falling under heading No. 8539 are chargeable to 6% duty vide Sl. No. 269 of Notification No. 12/2012-CE dated 17.3.2012 as amended. All other bulbs are liable to duty @12.5%.

[Guest]

found in Ntfn no. 12/2012 dt 17.03.2012 sr no. 321 provides 6% ED on LED lights. Thanks for your help

AI Summary

Excise treatment of LED components clarifies reduced duty for inputs, while finished LED lamps attract standard higher duty. The reduced excise duty applies to inputs used in the manufacture of LED drivers or MCPCBs for LED lights and fixtures and does not apply to finished LED lamps. Finished LED lights are classified under the lighting tariff headings and are generally subject to the standard excise tariff rate, with a narrow concessional exception for certain small vacuum or gas filled bulbs sold at low retail price under the notification.