Graphics HSN Code

Understanding “Graphics” HSN Codes

The term “graphics” in today’s digital age immediately brings to mind vibrant visuals, intricate designs, and digital artistry. However, when it comes to the Harmonized System of Nomenclature (HSN) and Goods and Services Tax (GST), the classification of “graphics” specifically pertains to recorded media or certain computer-related items. It’s not about the artistic creation process itself, but rather the physical or digital manifestation of that creation. Understanding this distinction is vital for businesses dealing with digital content, software, and related media.

The “Graphics” HSN Codes

The HSN system categorizes goods meticulously. When we talk about “graphics” in this context, the relevant classification falls under Chapter 85, 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.”

Here’s the key HSN classification for “graphics” based on the provided data:

• Records, Tapes And Other Recorded Media For Sound Or Other Similarly Recorded Phenomena, Including Matrices And Masters For The Production Of Records, But Excluding Products Of Chapter 37 – Other: – Other : 2-D/3D Computer Graphics (HSN 85249920): This specific HSN code is dedicated to “2-D/3D Computer Graphics” when they exist as recorded media. This implies digital graphics stored on physical media like CDs, DVDs, hard drives, or other similar carriers that are traded. It’s crucial to note that this HSN code excludes products of Chapter 37, which typically deals with photographic or cinematographic goods.

This classification highlights that the “graphics” referred to in this HSN context are essentially digital files or software that contain 2D or 3D graphical data, distributed as recorded media. It doesn’t apply to the creation of the graphics or the services of graphic designers.

The GST Rates for “Graphics”

In India, the Goods and Services Tax (GST) rate for “graphics” as recorded media is consistent with many other electrical and electronic goods.

• 18% GST Rate: “2-D/3D Computer Graphics” classified under HSN 85249920 attract an 18% GST rate. This rate was effective from July 1, 2017, aligning with the nationwide implementation of GST.

For businesses involved in selling or distributing digital graphics on physical media, or perhaps older forms of recorded graphic content, applying this GST rate correctly is essential for tax compliance.