Bangles HSN Code

Understand the HSN Code for Bangles and Their GST

Bangles, from traditional adornments to modern fashion statements, hold significant cultural and economic value in India. For businesses manufacturing, trading, or importing bangles, understanding their correct Harmonized System of Nomenclature (HSN) code and the applicable Goods and Services Tax (GST) rate is crucial for compliance and smooth operations. The HSN code for bangles varies significantly depending on the material they are made from. Let’s delve into the specifics.

The HSN for Bangles by Material

The HSN (Harmonized System of Nomenclature) is a global classification system for products, pivotal in determining GST rates in India. Bangles, due to their diverse materials, can fall under different HSN chapters. The key is identifying the primary material composition.

The provided data highlights two main categories for bangles:

1. Plastic Bangles:

• Plastic Bangles (general):
  • HSN Code: 3926
  • GST Rate: NIL (Exempt)
  • Effective Date: July 1, 2017
  This entry specifically states “Plastic Bangles” as NIL GST under HSN 3926, which generally covers “Other Articles Of Plastics And Articles Of Other Materials Of Headings 3901 To 3914.” This is a significant point for manufacturers and sellers of plain plastic bangles.
• Bangles of Polyurethane Foam:
  • HSN Code: 39264011
  • GST Rate: 18%
  • Effective Date: July 1, 2017
• Other Plastic Bangles (under statuettes and ornamental articles):
  • HSN Code: 39264019
  • GST Rate: 18%
  • Effective Date: November 15, 2017 (with an initial effective date of July 1, 2017)
  It is important to note the nuance here: while a broad category of “Plastic Bangles” is NIL, specific types like those of polyurethane foam or other ornamental plastic bangles might attract GST. This could depend on the specific characteristics and ornamental value of the bangle.

2. Imitation Jewellery Bangles:

• Imitation Jewellery – Of Base Metal, Whether Or Not Plated With Precious Metal: Other: Bangles
  • HSN Code: 71171910
  • GST Rate: 3%
  • Effective Date: July 1, 2017
  This category specifically covers bangles that are considered “imitation jewellery” and are made of base metal (not precious metal), even if they have a precious metal plating. This is a crucial distinction from bangles made of actual gold, silver, or other precious metals, which would fall under different HSN codes and attract different GST rates.

The Importance of Precise HSN Classification

Given the varying GST rates based on the material, accurate HSN classification for bangles is extremely important for:

• GST Compliance: Ensures businesses correctly calculate and remit GST, avoiding penalties. The difference between NIL, 3%, and 18% is substantial.
• Accurate Invoicing: HSN codes are a mandatory detail on GST invoices for all registered businesses.
• Input Tax Credit (ITC): Correct classification helps in claiming ITC on inputs used in the manufacture or trade of bangles.
• Trade Facilitation: Precise HSN codes are necessary for smooth customs clearance during import and export.

Businesses should always refer to the latest official GST notifications and HSN classification guides to ensure their records are accurate and fully compliant with current regulations, especially when dealing with products that have nuanced classifications like bangles.