Binder clip HSN Code

Understanding the Binder Clip HSN Code

The humble binder clip is an indispensable tool in offices, schools, and homes worldwide, known for its strong grip and ability to keep documents neatly organized. While seemingly simple, this small stationery item, like all goods, has a specific Harmonized System of Nomenclature (HSN) code that dictates its classification for taxation and trade purposes, particularly concerning the Goods and Services Tax (GST) in India.

The Binder Clip’s HSN

Binder clips, being articles of base metal used in an office setting, are primarily classified under HSN Code 8305. This HSN heading specifically covers “Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal.”

More precisely, within HSN 8305, binder clips often fall under the sub-heading 83059020, which is designated for “Clips.” This ensures a clear and consistent classification for various types of metal clips used for office purposes.

It’s important to distinguish this from other “binder” related HSN codes, such as those for “binder” as a coating additive in paper products (like those found in Chapter 48 of the provided data) or “binder or baler twine” (from Chapter 56). The HSN system is highly specific, and the material and intended use of an item are crucial for accurate classification.

The GST on Your Binder Clips

For items classified under HSN 8305, including binder clips, the Goods and Services Tax (GST) rate is generally 18%. This rate applies to most stationery items made of metal. While the exact effective date for every sub-heading might vary slightly, this 18% rate has been consistently applied to such office articles.

Understanding the correct HSN code and corresponding GST rate is vital for manufacturers, distributors, and retailers of stationery. It ensures compliance with tax regulations, accurate pricing, and smooth transactions in the supply chain. So, the next time you reach for a binder clip, you’ll know its precise place in the world of HSN and GST.