Cutting tool HSN Code

Understand the Cutting Tool HSN Code

Cutting tools are fundamental to countless industries, from precision manufacturing and construction to everyday household tasks. Given their diverse applications and forms – ranging from simple hand tools to complex machine parts – understanding the correct HSN (Harmonized System of Nomenclature) code for cutting tools is essential for businesses in India to ensure accurate GST (Goods and Services Tax) compliance.

The classification of cutting tools depends heavily on whether they are hand-operated, part of a machine, or interchangeable components. Let’s delve into the relevant HSN codes and their associated GST rates.

Cutting Tool HSN Codes

Cutting tools primarily fall under two main Chapters in the HSN: Chapter 82 for hand tools and interchangeable tools, and Chapter 84 for machine tools that perform cutting operations.

1. Chapter 82: Tools, Implements, Cutlery, Spoons and Forks, of Base Metal; Parts Thereof of Base Metal

This chapter covers a wide array of hand tools and specific cutting implements, as well as interchangeable tools used with hand or machine tools.

• Hand Cutting Tools:
  • Metal Cutting Shears and Similar Hand Tools: HSN Code: 82033000
  • Pliers (Including Cutting Pliers), Pincers, Tweezers and Similar Tools: HSN Code: 82032000
  • Planes, Chisels, Gouges and Similar Cutting Tools for Working Wood: HSN Code: 82053000
  • Hand Saws; Blades For Saws Of All Kinds: HSN Code: 8202 (with specific sub-headings like 820210 for hand saws, 82022000 for band saw blades, etc.)
• Interchangeable Tools for Hand Tools or Machine-Tools: This is a crucial category for many cutting components that are not standalone machines. This includes drills, milling cutters, turning tools, etc.
  • Interchangeable tools for hand tools, whether or not power-operated, or for machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning or screw driving), including dies for drawing or extruding metal, and rock drilling or earth boring tools: HSN Code: 8207 (with various sub-headings depending on the specific tool, e.g., 82079090 for “other” interchangeable tools, which often includes carbide inserts, cutter blades, etc.)
• Knives and Cutting Blades for Machines or Mechanical Appliances: This covers industrial blades used in various machines.
  • For Metal-Working: HSN Code: 82081000
  • For Wood-Working: HSN Code: 82082000
  • For Paper Cutting Machines: HSN Code: 82089010
  • Other (e.g., for textiles, food industry): HSN Code: 82089090
• Plates, Sticks, Tips and the like for tools, unmounted, of cermets (e.g., Tungsten Carbide tips): HSN Code: 8209 (e.g., 82090010 for Tungsten carbide tips, 82090090 for other unmounted tips). These are often cutting inserts.

2. Chapter 84: Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; Parts Thereof

This chapter covers “machine-tools” that perform cutting operations, rather than the cutting tools themselves.

• Machine-Tools for Planing, Shaping, Slotting, Broaching, Gear Cutting, Gear Grinding or Gear Finishing, Sawing, Cutting-Off and Other Machine Tools Working By Removing Metal, or Cermets: HSN Code: 8461 (with numerous sub-headings for specific types of machines like 846140 for gear cutting machines, 846150 for sawing or cutting-off machines, and 84619000 for “Other” machine tools).
• Machine tools for working any material by removal of material, operated by laser or other light or photon beam processes; electro-chemical processes; electron beam, ion beam or plasma arc processes; water-jet cutting machines: HSN Code: 8456 (e.g., 84561000 for laser cutting machines).

Applying GST Rates to Cutting Tools

The vast majority of cutting tools, whether hand-operated, interchangeable, or machine-based, attract a GST rate of 18% in India. This rate has been consistently applied since the introduction of GST on July 1, 2017, for most of these categories, or since November 15, 2017, for others.

• Hand Tools (HSN 8203, 8205): 18% GST.
• Saws and Saw Blades (HSN 8202): 18% GST.
• Interchangeable Tools (HSN 8207): 18% GST.
• Knives and Cutting Blades for Machines (HSN 8208): 18% GST.
• Plates, Sticks, Tips of Cermets (HSN 8209): 18% GST.
• Machine-Tools for Cutting (HSN 8456, 8461): 18% GST.

There are generally no CESS charges applicable to these cutting tools. Always verify the precise HSN code and GST rate for your specific product to ensure full compliance with Indian tax regulations.