Encoder HSN Code

Understanding the Encoder HSN Code: A Guide for Businesses

Encoders are vital components in a wide range of applications, from industrial automation and robotics to audio-visual systems, converting mechanical motion or signals into electrical outputs. For businesses in India that manufacture, import, or supply encoders, understanding their correct Harmonized System of Nomenclature (HSN) code and the applicable Goods and Services Tax (GST) rate is essential for accurate compliance.

Encoders typically fall under Chapter 85 of the HSN, which covers “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.”

More precisely, encoders are often categorized under HSN heading 8543: “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this Chapter.” This is a broad “residual” heading for electrical devices that perform specific functions but don’t fit into more specialized categories within Chapter 85.

Based on the provided data, we see specific HSN codes for encoders, primarily focusing on audio-visual types:

• 85438994: “Electrical Machines And Apparatus Having Individual Functions, Not Specified Or Included Elsewhere In This Chapter – Other Machines And Apparatus: – Other: – Other : Audio Video Stereo Encoders.”
• 85437094: “Electrical Machines And Apparatus Having Individual Functions, Not Specified Or Included Elsewhere In This Chapter – Other Machines And Apparatus — Other —- Audio Visual Stereo Encoders.”

Both these specific HSN codes for audio-visual stereo encoders consistently show an 18% GST rate. This rate has been in effect since July 1, 2017, the initial implementation of GST in India.

While the provided data specifically highlights audio-visual encoders, it’s important to note that many other types of encoders, such as rotary encoders used in industrial applications, also fall under the broader HSN 8543, and frequently under subheadings like 85432090 (“OTHERS (E.G. PATTERN GENERATOR) Products Include: Rotary Encoder”) or 85437099 (“Other” electrical machines and apparatus having individual functions). These industrial encoders also generally attract an 18% GST rate.

Businesses should carefully identify the specific type and function of the encoder to select the most appropriate HSN code within Chapter 85, particularly under heading 8543, to ensure accurate GST compliance.