Ethernet Cable HSN Code

Understanding the Ethernet Cable HSN Code

In today’s interconnected world, Ethernet cables are the backbone of wired networks, enabling fast and reliable data transmission. For businesses dealing with these essential connectivity components in India, knowing the correct Harmonized System of Nomenclature (HSN) code is vital for accurate Goods and Services Tax (GST) compliance. Let’s unravel the HSN classification for Ethernet cables and their applicable GST rates.

Ethernet Cables Under the HSN System

Ethernet cables are fundamentally insulated electric conductors designed for data communication. This places them squarely within Chapter 85 of the HSN: “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.”

The data provided offers a very clear and consistent classification for various types of insulated cables, including those used for Ethernet:

• Insulated (Including Enamelled Or Anodised) Wire, Cable (Including Co-Axial Cable) And Other Insulated Electric Conductors, Whether Or Not Fitted With Connectors; Optical Fibre Cables, Made Up Of Individually Sheathed Fibres, Whether Or Not Assembled With: This comprehensive description precisely covers Ethernet cables, which are insulated electric conductors, often fitted with connectors (like RJ45).
  • Numerous HSN sub-codes are listed under this broad heading, including 85445930, 85445130, 85444293, 85441930, 85441990, 85445950, 85442010, 85444130, 85445140, 85445990, 85447010, 85441190, 85444919, and 85444120.
  • Crucially, all these codes consistently show an 18% GST rate. These rates were generally effective from 01/07/2017, with a revision on 15/11/2017.

Therefore, regardless of the specific type (e.g., Cat5e, Cat6, Cat7) or whether it comes with connectors, an Ethernet cable, being an insulated electric conductor for data, falls under the HSN 8544 series and is subject to an 18% GST rate.

Avoid Misclassifying Other “Cable” Related Items

The provided data also contains other entries with “cable” in their description, but these are distinct from Ethernet cables and fall under different HSN Chapters due to their different nature and use:

• Cranes Including Cable Cranes (HSN 8426): These refer to heavy machinery that uses cables for lifting. They are under Chapter 84 (“Nuclear reactors, boilers, machinery…”) and are taxed at 18% GST. This classification is for the machinery itself, not the data cable.
• Twine, Cordage, Ropes And Cables (Textile) (HSN 5607): This category includes ropes and cables made of textile materials like jute or cotton, not electrical conductors. They are under Chapter 56 (“Wadding, felt and nonwovens…”) and are taxed at 12% GST.
• Cable-Drums Of Wood (HSN 44152000): This refers to wooden drums used for winding and transporting cables, not the cables themselves. They are under Chapter 44 (“Wood and articles of wood”) and are taxed at 12% GST.

It is paramount to look at the full description and HSN Chapter to accurately classify a product. For “Ethernet Cable,” the focus must be on its function as an “insulated electric conductor” for data.