Circlip HSN Code

Understanding the Circlip HSN Code

Circlips, also known as snap rings or retaining rings, are indispensable components in countless mechanical assemblies. These simple yet ingenious devices play a critical role in securing parts on a shaft or within a bore, preventing axial movement. For businesses involved in the manufacturing, import, or sale of circlips in India, understanding their correct HSN (Harmonized System of Nomenclature) code is fundamental for accurate GST (Goods and Services Tax) compliance.

Fortunately, the HSN classification for circlips made of iron or steel is quite straightforward, falling under a specific and well-defined category.

The Circlip HSN Code

Circlips, being articles of iron or steel, are classified under Chapter 73: Articles of iron or steel. This chapter covers a wide array of products manufactured from these base metals.

Specifically, circlips are found under the heading that includes various fasteners and similar articles. The precise HSN code for circlips is:

• HSN Code 73182910: This code falls under the broader description of “Screws, Bolts, Nuts, Coach-Screws, Screw Hooks, Rivets, Cotters, Cotter-Pins, Washers (Including Spring Washers) And Similar Articles, Of Iron Or Steel – Non-Threaded Articles : Other : Circlips.”

This classification clearly identifies circlips as non-threaded articles of iron or steel, ensuring their specific categorization within the HSN system.

GST Rate for Circlips

The GST rate applicable to circlips classified under HSN Code 73182910 is 18%. This rate has been uniformly applied since the implementation of GST in India on July 1, 2017. There is no additional CESS typically levied on circlips.

Why Accurate HSN Classification is Crucial

• Ensuring Tax Accuracy: Applying the correct HSN code ensures you charge and pay the precise amount of GST, preventing discrepancies and potential penalties.
• Smooth Input Tax Credit (ITC) Flow: Accurate classification allows for seamless claiming of Input Tax Credit on your purchases, optimizing your tax liability.
• Streamlined Trade Operations: For businesses involved in importing or exporting circlips, using the correct HSN code facilitates quicker customs clearance and avoids delays.
• Maintaining Regulatory Compliance: Adhering to the HSN framework demonstrates your business’s commitment to tax regulations, which is vital during audits or official inquiries.

In essence, for all your circlip-related transactions, remembering HSN Code 73182910 and its associated 18% GST rate is key to maintaining proper financial records and operating within the regulatory framework.