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What Is GST And HSN?
Harmonized System of Nomenclature (HSN) is an internationally accepted standard coding system for products. The HSN is available for nearly 5000 commodity groups and is identified by a 6-digit code. It was developed by the World Customs Organization (WCO). HSN facilitates a uniform system of classification for goods all over the world in international trade. HSN Codes appear on the GST invoice.
GST – Goods and Services Tax
GST is an indirect tax system in India, that is levied on the supply of goods and services. It is a multistage, destination-based tax that is applied to every value, added to products or services.
Goods are classified by HSN code and GST rates are fixed by HSN code. Click here to know more https://www.indiatoday.in/business/budget-2020/story/budget-2020-handbook-your-one-stop-guide-for-key-financial-terms-1637054-2020-01-15
HSN Code for Boilers and Storage Water Heaters
Currently in India, GST rates are fixed under 4 slabs – 5%, 12%, 18%, 28%. There is an additional cess for luxury items. A vast number of essential items have been exempted from GST.
GST is further expanded into Central GST (CGST) and State GST (SGST). Both the taxes are applicable for intrastate movement of goods. CGST goes to the central government and SGST to the state government. IGST is the integrated GST which is applicable for any interstate movement of goods and goes to the central government.
Let us have a look at the HSN and GST rates for boilers and water heaters.
- Steam or vapour generating boilers come under the HS code of 8402 and carries a GST of 18%. This HSN does not include central heating boilers that can produce low-pressure steam.
- Central heating boilers appear under HS code 8403 and is taxed at 18%.
- Non-electric storage water heaters are levied a GST of 18% and belong to HS code of 8419. These do not include solar water heaters
- Electric storage water heaters appear under the HSN code 8516 and come under the 18% tax slab.
Let us summarise the above:
|HS Code||Description||CGST Rate (%)||SGST Rate (%)||IGST Rate (%)|
|8402||Steam or vapour generating boiler||9||9||18|
|8403||Central heating boilers||9||9||18|
|8419||Storage water heaters non-electric, autoclaves, apparatus for rapid heating of semiconductor devices, etc.||9||9||18|
|8516||Electric space heating apparatus, electric Instantaneous or storage water heaters and immersion heaters, electro-thermic hand dressing apparatus and hand dryers, electric smoothing irons, etc.||9||9||18|
GST Rate Revisions
While the above are the currently applicable rates across India, GST rates go through revisions and amendments from time to time. Hence it is always prudent to verify the rates before any business transaction.