Conveyor HSN Code

Understanding the “Conveyor” HSN Code for GST

For businesses in India dealing with “conveyors,” understanding the correct HSN (Harmonized System of Nomenclature) code is crucial for accurate GST compliance and seamless trade operations. The term “conveyor” can refer to both the complete machinery and specific components like belts, making precise classification essential. Let’s delve into the relevant HSN codes and GST rates.

Moving Towards Clarity: Conveyor HSN Codes and GST Rates

The HSN classification for “conveyors” is broadly categorized based on whether it refers to the complete machinery or its parts, particularly the conveyor belts.

Based on the provided data, here are the key HSN codes and GST rates relevant to conveyors:

• For Complete Conveyor Machinery (Lifting, Handling, Loading, or Unloading Machinery): These fall under Chapter 84: “Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof.”
  • 84283100: “Other Lifting, Handling, Loading Or Unloading Machinery (For Example, Lifts, Escalators, Conveyors, Teleferics) – Other Continuous-Action Elevators And Conveyors, For Goods Or Materials: Specially Designed For Underground Use.”
  • 842820: “Pneumatic Elevators And Conveyors.”
  • 84282019: “Other Lifting, Handling, Loading Or Unloading Machinery (For Example, Lifts, Escalators, Conveyors, Teleferics) – Pneumatic Elevators And Conveyors: Conveyors: Other.”
  • 84289010: “Other Lifting, Handling, Loading Or Unloading Machinery (For Example, Lifts, Escalators, Conveyors, Teleferics) – Other Machinery : For Coal Handling.”
  All these HSN codes for complete conveyor machinery consistently attract an 18% GST rate, with effective dates from November 15, 2017.
• For Conveyor Belts or Belting of Vulcanised Rubber: These fall under Chapter 40: “Rubber and articles thereof.”
  • 40101110: “Conveyor Or Transmission Belts Or Belting Of Vulcanised Rubber – Conveyor Belts Or Belting : – Reinforced Only With Metal : Where The Rubber Compound Content Is Less Than 25% By Weight.” This specifically identifies conveyor belts made of rubber.
  • Other codes like 40103919, 40103991, 40103510, 40103610, 40103690, 40103992, 40103210, and 40103390 refer to various types of “Transmission Belts or Belting” of vulcanised rubber, which are closely related in material and function.
  All these rubber conveyor or transmission belts consistently attract an 18% GST rate, effective from July 1, 2017.
• For Transmission or Conveyor Belts or Belting of Textile Material: These fall under Chapter 59: “Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use.”
  • 591000, 59100020, 59100030, 59100090: These codes broadly cover “Transmission Or Conveyor Belts Or Belting, Of Textile Material, Whether Or Not Impregnated, Coated, Covered Or Laminated With Plastics, Or Reinforced With Metal Or Other Material.”
  All these textile conveyor or transmission belts consistently attract a 12% GST rate, effective from July 1, 2017.

It’s important to differentiate complete conveyor systems from their individual components, as they fall under different chapters and can have different GST rates.

Why HSN Codes are Essential for Your Conveyor Business

Accurate HSN code classification is fundamental for several reasons:

• GST Compliance: The HSN code directly determines the applicable GST rate, ensuring businesses charge and remit the correct amount of tax to the government, avoiding penalties.
• Transparent Pricing: Clear HSN codes contribute to transparent pricing throughout the supply chain, from manufacturing to sale.
• Seamless Trade: HSN codes provide a universal language for goods, simplifying customs procedures for both domestic and international trade, reducing delays and errors.
• Inventory Management: Proper classification aids in efficient inventory tracking, procurement, and overall supply chain management.