Concrete mixer HSN Code

Understanding the Concrete Mixer HSN Code for GST Compliance

Understanding the correct HSN (Harmonized System of Nomenclature) code for your goods is crucial for accurate GST (Goods and Services Tax) compliance in India. For businesses dealing with concrete mixers, identifying the appropriate HSN code ensures proper tax rates are applied, preventing potential discrepancies and penalties.

Identifying the HSN for Concrete Mixers

When it comes to concrete mixers, the HSN classification primarily depends on their nature and design.

• Special Purpose Motor Vehicles (HSN 8705): If the concrete mixer is integrated into a vehicle, designed as a mobile unit for mixing and transporting concrete, it falls under HSN Chapter 87. This chapter covers “Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof,” specifically “Special Purpose Motor Vehicles, Other Than Those Principally Designed For The Transport Of Persons Or Goods (For Example, Breakdown Lorries, Crane Lorries, Fire Fighting Vehicles, Concrete-Mixers Lorries, Spraying Lorries, Mobile Workshops, Mobile Radiol…” Various sub-headings like 87059000, 87054000, 87052000, 87053000, 87051000, and the broader 8705 all attract an 18% GST rate with no CESS. These rates have been effective since August 1, 2019, with earlier revisions on July 27, 2018.
• Machinery and Mechanical Appliances (HSN 8474): Standalone concrete or mortar mixers, which are not integrated into a special purpose vehicle, are classified under HSN Chapter 84. This chapter deals with “Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof.” Specifically, “Concrete Or Mortar Mixers” are categorized under HSN 847431. These types of mixers are also subject to an 18% GST rate, effective from July 1, 2017.

Understanding Related HSN Codes

While directly related to concrete mixers, other HSN codes also pertain to concrete-related goods and services.

• Machine-Tools for Working Concrete (HSN 8464): This includes machinery for grinding or polishing concrete (84642000) and sawing machines for concrete (84641090, 84641010), all attracting an 18% GST rate.
• Articles of Concrete (HSN 6810): Products made from concrete, such as tiles, flagstones, bricks, building blocks (68101990, 68101190, 68101910), and concrete boulders (68109910), are also subject to an 18% GST rate.
• Concrete Aggregates (HSN 2517): Materials commonly used for concrete aggregates, like pebbles, gravel, broken or crushed stone, fall under HSN 2517 (e.g., 25174900, 2517, 25174100, 25171020, 25171090) and are taxed at a lower 5% GST rate.
• Concrete Services (SAC 995454): Services related to concrete construction are covered under SAC (Service Accounting Code) 995454. The GST rates for these services can vary (1.5%/5%/7.5%/12%/18%) based on specific conditions, such as the nature of the project (e.g., affordable housing, government projects, specific sporting events like FIFA U-17 Women’s World Cup 2020), input tax credit considerations, and reverse charge mechanisms for certain shortfalls in input supplies.

Important Considerations for GST Compliance

• Distinguish between goods and services: Clearly differentiate between the sale of a concrete mixer (goods) and providing concrete-related services.
• Mobile vs. Standalone Mixers: The HSN code differs significantly based on whether the mixer is a vehicle or a standalone machine.
• Input Tax Credit (ITC): Be aware of the ITC rules, especially for concrete services, where specific conditions apply regarding registered suppliers and reverse charge mechanisms for certain scenarios.
• Regular Updates: GST rates and HSN classifications can be revised, so always refer to the latest notifications from the GST Council.

By carefully identifying the correct HSN code, businesses dealing with concrete mixers can ensure accurate GST compliance and streamline their operations.