Chuck HSN Code

Understand the Chuck HSN Code: A Comprehensive Guide

For businesses in India dealing with “chucks,” understanding the correct HSN (Harmonized System of Nomenclature) code is absolutely vital for smooth GST compliance and efficient trade. The term “chuck” can refer to different types of industrial holding devices, and their classification depends on their function and mechanism. Let’s delve into the relevant HSN codes and GST rates.

The Right HSN Code for “Chucks”

The HSN classification for “chucks” primarily depends on whether they are electromagnetic or permanent magnet, or if they are a component of a specific machine tool like a lathe.

Based on the provided data, here are the key HSN codes associated with “chucks”:

• For Electro-magnetic or Permanent Magnet Chucks, Clamps, and Similar Holding Devices: The HSN code is 85053000. This falls under Chapter 85, which covers “Electrical machinery and equipment and parts thereof.” This specific code is for “Electro-Magnets; Permanent Magnets And Articles Intended To Become Permanent Magnets After Magnetisation; Electro-Magnetic Or Permanent Magnet Chucks, Clamps And Similar Holding Devices; Electro-Magnetic Couplings, Clutches And Brakes; Electro-Magnetic Li[fting heads].” These types of chucks attract an 18% GST rate, effective from July 1, 2017. Other related HSN codes within 8505 (e.g., 850518, 85051900, 85052000, 85059000) also broadly cover electromagnetic devices and parts, and all carry an 18% GST.
• For Chucks as part of Lathes for Removing Metal: The HSN code can be 84581913 for “Horizontal Chucking” lathes or 84589920 for “Automatic, Multi Spindle Chucking” other lathes. These codes fall under Chapter 84, “Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof.” These specific machine tools, which incorporate chucking mechanisms, also attract an 18% GST rate, effective from July 1, 2017. It’s important to note that these HSN codes refer to the entire lathe machine, not just the chuck component sold separately.

Therefore, if you are trading in individual chucks as holding devices, 85053000 is likely the most appropriate HSN code. If you are dealing with complete lathe machines that utilize chucking, then the relevant 8458 series HSN codes apply.

Understanding the GST Implications

The Goods and Services Tax (GST) system in India relies heavily on precise HSN classification. The correct HSN code ensures that the appropriate GST rate is applied, which is critical for:

• Tax Compliance: Businesses must charge and remit the correct GST to avoid penalties and legal issues.
• Pricing Strategy: Accurate GST rates are fundamental for setting competitive product prices and calculating profit margins.
• Input Tax Credit (ITC): Correct classification allows businesses to claim eligible ITC on their purchases, reducing their overall tax liability.
• Customs Clearance: For imported or exported goods, proper HSN codes facilitate smooth and efficient customs procedures.