Die HSN Code

Understanding the HSN Code for Dies

In manufacturing, “dies” are indispensable tools that shape, cut, or form materials. From stamping metal parts to drawing wire, dies are central to various industrial processes. For businesses involved in the production, supply, or use of these critical components, understanding their correct HSN (Harmonized System of Nomenclature) code is crucial for accurate Goods and Services Tax (GST) compliance. The HSN classification for “die” primarily depends on its function and the type of machinery it’s designed for.

The Die HSN Codes and GST Rates

When we talk about “dies” in a manufacturing context, we are generally referring to tools used with machine-tools to shape or cut materials. These tools typically fall under Chapter 82 or Chapter 84 of the HSN, depending on their specific nature and application.

Here’s a breakdown of the relevant HSN codes for dies and their consistent 18% GST rate:

• Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal:
  • 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: This broad and crucial category directly includes dies used in various forming operations.
    • HSN 82074090 specifically refers to “Dies for drawing or extruding metal.” This is a primary HSN code for dies used in processes like wire drawing or extrusion, and it is subject to an 18% GST rate.
• Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof: This chapter covers the machinery that uses dies.
  • Machine-Tools (Including Presses) For Working Metal By Forging, Hammering Or Die-Stamping; Machine-Tools (Including Presses) For Working Metal By Bending, Folding, Straightening, Flattening, Shearing, Punching Or Notching; Presses For Working Metal Or Met: This description covers the presses and machine-tools that utilize dies for various metalworking operations.
    • Various HSN codes under this heading, such as 84629913, 84621011, and 84629970, are all for the machinery itself, not the dies, but they highlight the context in which dies are used. These machines also attract an 18% GST rate.
  • Parts And Accessories Suitable For Use Solely Or Principally With The Machines Of Headings 8456 To 8465, Including Work Or Tool Holders, Self-Opening Dieheads, Dividing Heads And Other Special Attachments For Machine-Tools; Tool Holders For Any Type Of To: This heading specifically includes “Self-Opening Dieheads,” which are a type of die assembly.
    • HSN codes like 84663010 (Tool Holders for any type of tool for working metal) and 84663090 (Other parts and accessories for machine-tools including self-opening dieheads) are relevant here. These also carry an 18% GST rate.

The consistent 18% GST rate across dies and the machinery they work with simplifies tax compliance for the metalworking industry.

Avoiding Confusion with Other “Die” Related Terms

The provided data also contains other HSN codes with “die” or “diethyl” in their description, which are not related to the industrial tools:

• Chemical Products (Chapter 29):
  • Phosphorothioic Acid, S[2-(Diethyl Amino) Ethyl] O, O-Diethyl Ester (HSN 29309097): This is a complex chemical compound, not a tool. It has an 18% GST rate.
  • Diethyl Phosphite (HSN 29209044): Another chemical compound, also with an 18% GST rate.
  • Diethyl Toluidine (HSN 29214310): An amine-function compound, attracting an 18% GST rate.
• Electrical Capacitors… Of Dielectric Of Mica (HSN 85322910): This refers to the dielectric material within an electrical capacitor, not a forming tool. It also has an 18% GST rate.
• Industrial Or Laboratory Electric Furnaces And Ovens (Including Those Functioning By Induction Or Dielectric Loss) (HSN 8514): This refers to heating equipment that might use “dielectric loss” as a heating method, but it is not a “die” tool. These also carry an 18% GST rate.
• Diesel/Semi-Diesel Engines and Vehicles (Chapter 87 and 27): Numerous HSN codes for “Diesel” engines and vehicles (e.g., HSN 8703, 8704, 8702, and diesel fuel HSN 27101944). These are related to internal combustion engines and fuels, not the forming tools. GST rates for vehicles vary, but diesel fuel is 18%.

The key is to understand that the HSN classification depends on the specific function and nature of the item. “Die” as an industrial tool for shaping materials is distinct from chemical compounds or types of engines.

FAQs

1. What HSN Chapter generally covers industrial dies? Industrial dies for shaping metal are typically covered under HSN Chapter 82 (for interchangeable tools) or Chapter 84 (for parts of machine-tools like dieheads).
2. What is the GST rate for metal drawing dies? Dies for drawing or extruding metal (HSN 82074090) attract an 18% GST rate.
3. Are die-stamping machines classified under the same HSN as the dies themselves? No, die-stamping machines are classified under HSN 8462, while the dies are typically under 8207 or 8466.
4. What is a “Self-Opening Diehead” and its HSN code? A “Self-Opening Diehead” is a type of die assembly used with machine-tools, and its parts are classified under HSN 84663090.
5. When did the current GST rates for dies become effective? The current GST rates for dies and related machine-tools became effective on July 1, 2017.
6. Does “Diethyl Toluidine” refer to a type of die? No, “Diethyl Toluidine” (HSN 29214310) is a chemical compound, unrelated to industrial dies.
7. What is the GST rate for industrial electric furnaces that use “dielectric loss”? These furnaces (HSN 8514) attract an 18% GST rate.
8. Are “diesel engines” related to the HSN code for industrial dies? No, “diesel engines” and related vehicles are classified under HSN Chapter 87 and Chapter 27 for fuel, distinct from industrial dies.
9. Why is it important to differentiate between “die” as a tool and “die” in chemical names? Precise differentiation is essential for correct HSN classification and applying the accurate GST rate.