Sharpener hsn code and gst rate

In re Doms Industries Pvt. Ltd. (GST AAR Gujarat) Supply of sharpeners along with pencils amounts to ‘Mixed Supply’ taxable at the higher rate among all the supplies The AAR, Gujarat in the matter of M/s. Doms Industries Pvt. Ltd. [Advance Ruling No. GUJ/GAAR/R/ 2022/52 dated December 30, 2022] has held that the supply of pencil-sharpeners along with pencils will be covered under the category of ‘Mixed Supply’ and that HSN code will be used which attracts higher rate of tax among all the taxable supplies containing in a pack/box. Facts: M/s Doms Industries Pvt. Ltd. (“ the Applicant”) is a manufacturer and supplier of all kind of the stationary items. The Applicant has submitted that vide Notification No. 2/2022- Central Tax (Rate) dated July 13, 2022 (“ the Goods Rate Notification”), the GST rate on Sharpener and Scales was increased from 12% to 18% w.e.f. July 18, 2022. Further, the Sharpener and Scales are sold by the Applicant in a kit, which is a combination of sharpener or scales and other products, which are liable to GST rate at 5% and 12%. The Applicant submitted that earlier they used to sell the kit under the HSN code of the item with highest value inside the kit which also had the maximum GST rate but now after the change of GST rate vide the Goods Rate Notification, sharpener has now the highest GST rate although it is sold as an accessory in the kit. The Applicant further submitted that for a combination of supplies to qualify as a ‘Mixed Supply’, it is impor...

The Central Board of Indirect Taxes and Customs (CBIC) released food Central Tax (Rate) notifications and one Compensation Cess (Rate) notification on 28th February 2023. These are the GST rate changes announced earlier at the 49th GST Council meeting on 18th February 2023. All these GST rate revisions shall apply from 1st March 2023. Notification No. 04/2023-Central Tax (Rate) grants GST exemption for Rab, also called liquid jaggery, sold lose or without pre-packaging. With this change, the GST rate has been cut on Rab/Liquid jaggery from 18% to nil for loosely sold Rab. Further, Notification No. 03/2023-Central Tax (Rate) has revised the GST rate on Rab sold pre-packaged and labelled from 18% to 5%. GST on pencil sharpeners has been reduced from 18% to 12% by re-classifying it under the HSN code 8214. Notification No. 03/2023-Central Tax (Rate) brings this change with effect from 1st March 2023. Accordingly, the entry at Sl. No. 302A has been revised to exclude the reference to pencil sharpeners. The GST Council, in its 49th meeting, had recommended taxing the services by courts and tribunals under the reverse charge mechanism. Accordingly, Notification No. 02/2023-Central Tax (Rate) revises the original Notification No. 13/2017- Central Tax (Rate) to include courts and tribunals in its scope. The government also issued Notification No. 01/2023-Central Tax (Rate) on 28th February 2023, revising to extend the GST exemption to another service. Any Board, authority, or body...

Chapter / Heading / Sub-heading / Tariff item: 8460 GST Tax Rate: 18% Description: Machine-tools for deburring, sharpening, grinding, honing, lapping, polishing or otherwise finishing metal, or cermets by means of grinding stones, abrasives or polishing products, other than gear cutting, gear grinding or gear finishing machines of heading 8461 Harmonized System of Nomenclature (HSN) is an internationally recognized product/items coding system which is also has been accepted in India. It contains almost 5000 commodity groups which is being identified by a six digit code. Each group is assigned in a most scientific way along with product description for uniform classification. HSN code is designed and introduced by World Customs Organization (WCO) which is being used by more than 200 countries worldwide including India. Hubco.in provides complete ecosystem for GST and Companies. We do not believe in traditional manual work rather we believe in automation of processes so that you can get the best out of your available resources. We are a company of hope and values. We believe in progressive growth along with high moral standard. Hence, we take our work very seriously and provides you the best services all over the web. We wish you all the best for your startup and in case of any query, email to

A pencil sold with sharpener will attract higher GST than a pencil sold alone since the sale of a pencil and sharpener together is ‘mixed supply’, the Gujarat AAR (GAAR) has held. Businesses either supply goods or services alone, or bundle goods and/ or services. Bundled supplies are categorised into two – mixed and composite supply. While mixed supply refers to supply of two or more goods and/ or supplies together at a single price and each of them can be supplied separately, composite supply refers to supply of two or more goods or services or both, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. The tax liability in case of mixed supply is fixed on the basis of goods or services that have the highest rate. In case of composite supply, one good or service is taken as a principal supply, the tax rate for which will apply to the entire supply. Doms Industries, based in Umbergaon (Gujarat), submitted details of its three products. One, pencils along with sharpener and eraser; second, a colouring book, pencil, colour pencils, oil pastels, plastic crayons, wax crayons, eraser, scale and sharpener, and third pencils, erasers, scale and sharpener. In July last year, based on a GST Council recommendation, the Finance Ministry notified 18 per cent GST for sharpeners, and that changed the equation. READ NOW Accordingly, the company moved AAR to seek advance rulings on three questions. F...

Do you know what will be GST rate for products/ services you sell? No worries. We have given here GST rate chart covering most of the goods, services with HSN and SAC code. Following points are covered in this article: • What is GST in India? • GST rate for goods and services with HSN code • what is composition scheme and GST rate under the scheme? • Reverse charge under gst and GST rate under the same • GST Compensation Cess Rate • How to charge CGST, IGST, SGST while issuing invoices? • GST benefits • GST credits What is Good Service Tax (GST)?: GST is proposed to be a comprehensive indirect tax to be levied on manufacture, sale and consumption of goods as well as services at the national level. It will substitute all indirect taxes levied on goods and services by the Central and State Governments in India as of now. GST Rate chart applicable from 1St July, 2017 in India: Please find below the rates of GST for few goods and services. GOODS Chapter / Heading / Sub- heading / Tariff item Description of goods GST Rate approved by the GST Council 01012100, 010129 Live horses 12% 0101 to 0106 All live animal other than live horses 0% 0202, 0203, 0204, 0205, 0206, 0207, 0208, 0209 All goods in frozen state and put up in unit containers 12% 0303, 0304, 0305, 0306, 0307, 0308 All goods (other than fish seeds, prawn / shrimp seed) processed, cured or in frozen state 5% 04029110, 04029920 Condensed milk 18% 0405, 0406 Butter and other fats (ghee, butter oil, etc.) and oils derived...

HSN Codes Under Goods And Services Tax In India - Complete List India’s biggest tax reform – GST was introduced on 1-July-2017. It was introduced after 10 years of research and a countless number of meetings. By the introduction of Goods and Services Tax, it brought the internationally used HSN codes into Indian trade business. What is GST GST is the final outcome after merging all the central taxes ( Excise duty, sales tax, service tax, surcharges and cesses) and state taxes (State VAT/ sales tax, Purchase tax, Luxury tax, entertainment tax, sin tax, etc.) and made into a single tax under the slogan “ One Nation, One Tax”. What are GST Rates Goods and Services Tax (GST) is the single taxation, but due to the vast number of commodities and services, they are placed under different GST slabs or different GST tax rates. The • NIL : Under this tax slab 0% tax is levied on the goods or services we use. • 5 % : Under this tax slab 5% tax is levied on the goods and services we use. • 12%: Under this tax slab 12% tax is levied on the goods and services we use. • 18%: Under this tax slab 18% tax is levied on the goods and services we use • 28%: Under this tax slab 28% tax is levied on the goods and services we use. NOTE: Gold and other precious metals are exempted and placed under 3% slab. Till date 34 What is an HSN code HSN stands for “Harmonized system of Nomenclature” which was developed by the World Customs Organisation (WCO). WCO’s main objective for introducing HSN codes is...

HSN Code Description Rate (%) CESS (%) Effective Date Rate Revision 8472 Other Office Machines (For Example, Hectograph Or Stencil Duplicating Machines, Addressing Machines, Automatic Banknote Dispensers, Coin Sorting Machines, Coin Counting Or Wrapping Machines, Pencilsharpening Machines, Perforating Or Stapling Machines) 18 0 15/11/2017 1/07/2017 omitted from 28% 18% 84721000 Other Office Machines (For Example, Hectograph Or Stencil Duplicating Machines, Addressing Machines, Automatic Banknote Dispensers, Coin Sorting Machines, Coin Counting Or Wrapping Machines, Pencil-Sharpening Machines, Perforating Or Stapling Machines) Du 18 0 15/11/2017 1/07/2017 omitted from 28% 18% 84722000 Other Office Machines (For Example, Hectograph Or Stencil Duplicating Machines, Addressing Machines, Automatic Banknote Dispensers, Coin Sorting Machines, Coin Counting Or Wrapping Machines, Pencil-Sharpening Machines, Perforating Or Stapling Machines) Ad 18 0 15/11/2017 1/07/2017 omitted from 28% 18% 84723000 Other Office Machines (For Example, Hectograph Or Stencil Duplicating Machines, Addressing Machines, Automatic Banknote Dispensers, Coin Sorting Machines, Coin Counting Or Wrapping Machines, Pencil-Sharpening Machines, Perforating Or Stapling Machines) Ma 18 0 15/11/2017 1/07/2017 omitted from 28% 18% 847290 Other 18 0 15/11/2017 1/07/2017 omitted from 28% 18% 84729010 Other Office Machines (For Example, Hectograph Or Stencil Duplicating Machines, Addressing Machines, Automatic Banknote ...

HS 82141010 Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal (OTHER ARTICLES OF CUTLERY (FOR EXAMPLE, HAIR CLIPPERS, BUTCHERS’ OR KITCHEN CLEAVERS, CHOPPERS AND MINCING KNIVES, PAPER KNIVES); MANICURE OR PEDICURE SETS AND INSTRUMENTS (INCLUDING NAIL FILES), Paper knives, letter openers, erasing knives, pencil sharpeners and blades therefor, Paper knives, letter openers, erasing knives, pencil sharpeners ) HS code is classified under chapter 82 (Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal) of ITC (Indian Tariff Code). Chapter 82 is classified under Section 15 (BASE METAL & ARTICLES OF BASE METAL). You can check Decoding HSN 82141010 Digits Details 82 First 2 digits, (82) represents chapter number. This chapter is for Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal. 8214 4 digit HSN code for OTHER ARTICLES OF CUTLERY (FOR EXAMPLE, HAIR CLIPPERS, BUTCHERS’ OR KITCHEN CLEAVERS, CHOPPERS AND MINCING KNIVES, PAPER KNIVES); MANICURE OR PEDICURE SETS AND INSTRUMENTS (INCLUDING NAIL FILES) Next 2 digits, (14) represents heading number. This heading is for OTHER ARTICLES OF CUTLERY (FOR EXAMPLE, HAIR CLIPPERS, BUTCHERS’ OR KITCHEN CLEAVERS, CHOPPERS AND MINCING KNIVES, PAPER KNIVES); MANICURE OR PEDICURE SETS AND INSTRUMENTS (INCLUDING NAIL FILES). 821410 6 digit HSN code for Paper knives, letter openers, erasing knives, pencil sharpeners and blades the...

Businesses either supply goods or services alone, or bundle goods and/ or services. Bundled supplies are categorised into two – mixed and composite supply. While mixed supply refers to supply of two or more goods and/ or supplies together at a single price and each of them can be supplied separately, composite supply refers to supply of two or more goods or services or both, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. The tax liability in case of mixed supply is fixed on the basis of goods or services that have the highest rate. In case of composite supply, one good or service is taken as a principal supply, the tax rate for which will apply to the entire supply. Doms Industries, based in Umbergaon (Gujarat), submitted details of its three products. One, pencils along with sharpener and eraser; second, a colouring book, pencil, colour pencils, oil pastels, plastic crayons, wax crayons, eraser, scale and sharpener, and third pencils, erasers, scale and sharpener. In July last year, based on a GST Council recommendation, the Finance Ministry notified 18 per cent GST for sharpeners, and that changed the equation. Accordingly, the company moved AAR to seek advance rulings on three questions. First, whether the supply of pencil sharpeners along with pencils, being the principal supply, will be considered “Composite Supply” or “Mixed Supply”. Second, the HSN code to be used. And t...

What is HSN Code? HSN code stands for “Harmonized System of Nomenclature”. This system has been introduced for the systematic classification of goods all over the world. HSN code is a 6-digit uniform code that classifies 5000+ products and is accepted worldwide. It was developed by the World Customs Organization (WCO) and it came into effect from 1988. HSN Worldwide The HSN system is used by more than 200 countries and economies for reasons such as: • Uniform classification • Base for their Customs tariffs • Collection of international trade statistics Over 98% of the merchandise in international trade is classified in terms of the HSN. Harmonized System of Nomenclature number for each commodity is accepted by most of the countries. The HSN number remains same for almost all goods. However, HSN number used in some of the countries varies little, based on the nature of goods classified. HSN in India India is a member of World Customs Organization(WCO) since 1971. It was originally using 6-digit HSN codes to classify commodities for Customs and Central Excise. Later Customs and Central Excise added two more digits to make the codes more precise, resulting in an 8 digit classification. Understanding the HSN Code The HSN structure contains 21 sections, with 99 Chapters, about 1,244 headings, and 5,224 subheadings. • Each Section is divided into Chapters. Each Chapter is divided into Headings. Each Heading is divided into Sub Headings. • Section and Chapter titles describe broa...