Brake fluid HSN Code

Understand the HSN Code for Brake Fluid

If you are in the automotive or chemical industry in India, understanding the correct HSN code for brake fluid is crucial for GST compliance. The classification depends on the fluid’s composition and state—whether it is a new product or a residual waste. Let’s explore the HSN codes and GST rates for brake fluid.

Classify New Brake Fluids

For new, prepared brake fluids used in hydraulic transmission systems, the HSN code falls under Chapter 38, “Miscellaneous chemical products.”

• The main heading is 3819, which covers “Hydraulic Brake Fluids And Other Prepared Liquids For Hydraulic Transmission, Not Containing Or Containing Less Than 70% By Weight Of Petroleum Oils Or Oils Obtained From Bituminous Minerals.”
• The specific HSN code for hydraulic brake fluids is 38190010.
• The GST rate for this product is 18%, which was made effective from November 15, 2017.
• A related HSN code, 38190090, covers other prepared liquids for hydraulic transmission and also has an 18% GST rate.

Understand the HSN Code for Waste Brake Fluids

If you are dealing with used or residual brake fluids, the HSN code changes significantly. It is still under Chapter 38 but is classified as a waste product.

• The HSN code is 38255000, which covers “Wastes Of Metal Pickling Liquors, Hydraulic Fluids, Brake Fluids And Anti-Freeze.”
• The GST rate for this waste product is 18%, effective from July 1, 2017.

Know the HSN Code for Related Brake Components

It’s important to differentiate brake fluid from other brake system components.

• Brake linings and pads: These friction materials have their own HSN codes.
  • If they contain asbestos, the HSN code is 68132010, with an 18% GST rate.
  • If they are mounted on a vehicle, they are classified as parts of motor vehicles under Chapter 87.
• Mounted brake linings: These fall under HSN code 87083100, which covers “Brakes And Servo-Brakes And Parts Thereof Mounted Brake Linings.”
  • The GST rate for this HSN code is 28%, with a Nil CESS. This rate has been in effect since July 1, 2017, and saw a revision on August 1, 2019.

Find the Right Code for Your Product

The key is to determine the nature of the product you are handling.

• New fluid: Use HSN code 38190010.
• Waste fluid: Use HSN code 38255000.
• Brake pads/linings: Use HSN codes under 6813 or 8708, depending on the product’s composition and whether it is mounted.

Always use the correct HSN code to ensure you are compliant with GST regulations.