Crane HSN Code

Understanding the Crane HSN Code and GST Rates

Cranes are indispensable machinery in various industries, from construction and manufacturing to shipping and logistics. For businesses involved in the manufacturing, sale, or operation of cranes in India, understanding their Harmonized System Nomenclature (HSN) codes and the applicable Goods and Services Tax (GST) rates is crucial for compliance and efficient business practices. Let’s delve into the different classifications of cranes.

Navigate Crane HSN Codes by Type and Function

The HSN classification for cranes is quite comprehensive, primarily falling under Chapter 84 (Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof) and Chapter 87 (Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof), with some specialized types in other chapters. The specific HSN code depends on the crane’s design, mobility, and primary function:

Under Chapter 84 (Machinery and Mechanical Appliances):

• General Cranes (Ships’ Derricks; Cranes Including Cable Cranes; Mobile Lifting Frames, Straddle Carriers And Works Trucks Fitted With A Crane): This broad category (HSN 8426) covers a wide range of cranes.
  • Overhead travelling cranes, Transporter cranes, Gantry cranes, Bridge cranes, Mobile lifting frames and straddle carriers: These are generally classified under 84261100 (specifically for overhead travelling cranes) and 84261200 (for mobile lifting frames and straddle carriers), as well as the broader 84261900 for other types.
  • Portal Or Pedestal Jib Cranes: These have a specific HSN code: 84263000.
  • Tower Cranes: These are distinct and fall under HSN 84262000.
  • Self-Propelled Cranes (On Tyres or Other): Mobile cranes that are self-propelled are categorized by their mobility, such as “On Tyres” (HSN 84264100) or “Other” (HSN 84264900).
  • Other Machinery (like Ropeway And Telphers): Other lifting machinery, even if crane-like in function, falls under 84269910.
• Parts of Cranes: Parts specifically designed for cranes (and other machinery of headings 8425 to 8430) are classified under HSN 8431.
  • “Parts Suitable For Use Solely Or Principally With The Machinery Of Heading 8426, 8429 Or 8430 – Of Machinery Of Ships Derricks And Cranes” falls under 84314920.

Under Chapter 87 (Vehicles):

• Crane Lorries (Special Purpose Motor Vehicles): If the crane is integrated into a motor vehicle designed for a specific purpose (not primarily transport of persons or goods), it falls under HSN 8705. This category includes “Crane Lorries.”
  • Specific codes within this general heading include 87059000, 87054000, 87052000, and 87053000.

Under Chapter 86 (Railway or Tramway rolling-stock):

• Railway or Tramway Cranes: Cranes specifically designed as part of “Railway Or Tramway Maintenance Or Service Vehicles” are found under HSN 86040000.

Under Chapter 89 (Ships, boats and floating structures):

• Floating Cranes: Cranes designed to float and whose navigability is subsidiary to their main lifting function are classified under HSN 8905.
  • Specific codes include “Floating Cranes” within 89059090.

Understand the GST Rates for Cranes

The GST rates for cranes are predominantly 18%, effective from July 1, 2017, for most classifications.

• Cranes under HSN 8426 and their parts under 8431: These consistently attract an 18% GST rate. This has been effective since July 1, 2017.
• Crane Lorries under HSN 8705: These special purpose motor vehicles also have an 18% GST rate. This rate became effective from August 1, 2019, with previous revisions on July 27, 2018.
• Railway or Tramway Cranes under HSN 86040000: These are subject to an 18% GST rate, effective from October 1, 2019.
• Floating Cranes under HSN 8905: These are taxed at a lower 5% GST rate, effective from July 1, 2017. This lower rate reflects the specific nature of marine vessels.

This broad consistency in GST rates for land-based and railway cranes at 18%, with a notable exception for floating cranes at 5%, provides clarity for taxation.