Controller HSN Code

Understand the Controller HSN Code for GST Compliance

“Controller” is a broad term, encompassing various devices that regulate and manage systems, from simple machine controls to complex electronic processors. For businesses involved in the manufacture, import, or sale of controllers, understanding their correct HSN (Harmonized System of Nomenclature) code is crucial for accurate Goods and Services Tax (GST) compliance. The provided data highlights two key categories of controllers, each with distinct HSN classifications.

Understanding the Scope of “Controller” in HSN

HSN codes provide a standardized global system for classifying goods. In India, they are essential for GST, ensuring consistent taxation across the supply chain. The term “controller” requires careful interpretation to determine the appropriate HSN code. The data indicates two primary types:

1. Network Access Controllers: These are devices that manage access and traffic within computer networks.
2. Electronic Integrated Circuits (Processors and Controllers): These are microchips that form the core of many electronic devices.

Classifying Network Access Controllers

• HSN Code 84733091: This code falls under Chapter 84: Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof. Specifically, it is for “Parts And Accessories (Other Than Covers, Carrying Cases And The Like) Suitable For Use Solely Or Principally With Machines Of Headings 8469 To 8472 – Parts And Accessories Of The Machines Of Heading 8471:- Other : Network Access Controllers.” This clearly defines network access controllers as parts of data processing machines.
• GST Rate: Network access controllers under HSN 84733091 attract a GST rate of 18%.

Electronic Integrated Circuit Controllers

• HSN Code 85423100: This code falls under Chapter 85: Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles. It is for “Electronic Integrated Circuits – Electronic Integrated Circuits — Processors And Controllers, Whether Or Not Combined With Memories, Converters, Logic Circuits,Amplifiers, Clock And Timing Circuits, Or Other Circuits.” This covers a wide array of microchip-based controllers used in countless electronic devices.
• GST Rate: Electronic integrated circuit controllers under HSN 85423100 also attract a GST rate of 18%.

Consistent GST Rate for Controllers

The data reveals that both network access controllers (HSN 84733091) and electronic integrated circuit controllers (HSN 85423100) share a consistent GST rate of 18%. This simplifies tax compliance for businesses dealing with these components. This rate has been in effect since July 1, 2017.

Importance of Accurate Classification

• Correct GST Application: Ensures you charge and pay the right amount of GST, avoiding penalties.
• Seamless Input Tax Credit (ITC): Facilitates smooth claiming of ITC on your purchases.
• Compliance and Audits: Demonstrates adherence to GST regulations, minimizing risks during audits.