IGST Rates and its impact

[K.Shashi Nair]

Hello..

8506 includes Primary and Secondary Cells. The Lithium Ion batteries /cells (including Mobile Phone Batteries) falls under this tariff. Under the amended notification, the IGST for 8506 has been revised from 28% to 18%

The imports that I do, are Parts of Lithium Ion Battery. This is being imported under 85079090. The IGST however for this is still at 28%.

Under the Make in India concept, will the tariff rate of 85079090 be revised to 18%? Else direct import of such battery will eventually turn out to be cheaper..

Thanks

[Nash Industries I Pvt Ltd]

Parts of lithium ion battery falls under HSN 8506 9000.

Batteries falling under HSN 8506 attracts 18% GST vide serial number 376A of Sch III.

The parts of lithium battery attracts 18% IGST vide serial number 453 of Schedule III.

AI Summary

GST rate on lithium-ion battery parts revised under Schedule III, altering import classification and cost competitiveness. Parts of lithium ion batteries are classifiable under HSN 8506 9000 and therefore attract the reduced IGST rate applied to goods under HSN 8506; this aligns parts' import tariff with finished batteries and addresses the anomaly that made direct imports of complete batteries cheaper than imported parts.