Aluminium products HSN Code

Understanding Aluminium Products HSN Code: A Gateway to GST Compliance

Aluminium, a lightweight, durable, and versatile metal, finds extensive use across numerous industries, from construction and automotive to packaging and household goods. For businesses dealing with aluminium products in India, correctly identifying their HSN (Harmonized System of Nomenclature) code and applying the appropriate GST (Goods and Services Tax) rate is paramount for seamless operations and tax compliance.

The HSN for Aluminium and Its Articles

The vast majority of aluminium products fall under Chapter 76 of the HSN, specifically titled “Aluminium and articles thereof.” This chapter encompasses a wide spectrum, from raw aluminium to finished goods.

Here’s a breakdown of common classifications within Chapter 76:

• Raw Aluminium: This includes unwrought aluminium (e.g., ingots, billets) and aluminium waste and scrap. These typically fall under HSN codes like 7601 and 7602.
• Aluminium Powders and Flakes: HSN code 7603 covers these forms.
• Aluminium Bars, Rods, and Profiles: These semi-finished products are found under HSN 7604.
• Aluminium Wire: HSN 7605 is designated for aluminium wire.
• Aluminium Plates, Sheets, and Strip: Products exceeding 0.2 mm thickness are covered by HSN 7606, with further sub-classifications based on alloy type and form (e.g., coils, rectangular).
• Aluminium Foil: HSN 7607 is specifically for aluminium foil, with sub-categories for backed or unbacked, and further worked (e.g., printed, coated).
• Aluminium Tubes and Pipes: These are classified under HSN 7608.
• Aluminium Tube or Pipe Fittings: Couplings, elbows, and sleeves made of aluminium fall under HSN 7609.
• Aluminium Structures and Parts of Structures: This includes items like doors, windows, and their frames, as well as bridges, towers, and roofing frameworks, under HSN 7610.
• Aluminium Reservoirs, Tanks, Casks, Drums, Cans, Boxes: Various containers made of aluminium are classified under HSN codes like 7611 and 7612.
• Stranded Wire, Cables, Plaited Bands, Slings: These items of aluminium are under HSN 7614.
• Table, Kitchen or Other Household Articles of Aluminium: This is a significant category for consumer goods, including utensils and sanitary ware, under HSN 7615.
• Other Articles of Aluminium: A residual category for various other fabricated aluminium articles, such as nails, screws, and expanded metal, is found under HSN 7616.

While the data provided touches on raw materials for the aluminium industry (petroleum coke, aluminium phosphates) and products coated with aluminium (iron/steel flat-rolled products), the core “Aluminium products” are predominantly found in Chapter 76.

The GST Rates for Aluminium Products

The vast majority of primary aluminium products and articles made of aluminium attract an 18% GST rate. This rate has been largely consistent since the implementation of GST on July 1, 2017.

However, there are a few notable exceptions:

• Household Aluminium Utensils and Sanitary Ware (HSN 7615): Many articles under this heading, including pressure cookers and non-stick kitchenware, typically attract a 12% GST rate. This was a revision from an earlier 28% rate to make them more affordable.
• Natural Aluminium Calcium Phosphates (HSN 2510): These mineral products used in various industries, but not directly “aluminium products” in the finished sense, have a 5% GST rate.
• Raw and Calcined Petroleum Coke for Aluminium Industry (HSN 27131110, 27131210): These essential raw materials for the aluminium industry also attract an 18% GST rate.

It is imperative for businesses to accurately classify their specific aluminium product to ensure the correct GST rate is applied, preventing compliance issues and ensuring proper Input Tax Credit (ITC) claims.