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

AI Summary

IGST on Lithium-Ion Battery Parts: Clarification on Tariff Code 85079090 and HSN 8506 9000 Rates A discussion on the forum addresses the IGST rates for lithium-ion batteries and their parts. The initial query highlights that while the IGST for lithium-ion batteries has been reduced from 28% to 18%, the parts imported under tariff code 85079090 remain at 28%. The concern is whether the tariff for these parts will be revised to 18% under the 'Make in India' initiative, as direct battery imports are becoming cheaper. The response clarifies that parts of lithium-ion batteries fall under HSN 8506 9000 and attract an 18% IGST according to Schedule III.