Handicraft HSN Code

Understanding Handicraft HSN Codes and GST Rates

Handicrafts, embodying rich cultural heritage and skilled artistry, encompass a vast array of products made by hand. For artisans, traders, and exporters of handicrafts, navigating the Goods and Services Tax (GST) framework and its Harmonized System of Nomenclature (HSN) codes can be a nuanced task. While “handicraft” isn’t a single HSN category, the classification depends entirely on the material from which the handicraft is made.

The Material Dictates the Code

It is crucial to understand that the HSN system classifies goods based on their material composition and nature, not necessarily by the term “handicraft” itself. This means:

• If a handicraft is made of metal: It would fall under relevant HSN Chapters for metals (e.g., Chapter 73 for iron/steel, Chapter 74 for copper, Chapter 76 for aluminum), with corresponding GST rates.
• If a handicraft is made of textiles: It would be classified under relevant HSN Chapters for textiles (e.g., Chapter 50-63), with their respective GST rates.
• If a handicraft is made of ceramic or glass: It would be found in relevant chapters for those materials (e.g., Chapter 69 for ceramic products, Chapter 70 for glass).

Therefore, for any handicraft product, the first step in determining the HSN code is to identify its primary material. Once the material is identified, you can then navigate to the relevant HSN chapter and find the most appropriate code for the “article of” that material.