Handle HSN Code

Understanding the Handle HSN Code: Your Guide to GST Compliance

Handles, though seemingly simple components, play a crucial role across a vast array of products, from tools to umbrellas to everyday household items. For businesses involved in manufacturing, distributing, or selling goods with handles, understanding the correct Harmonized System of Nomenclature (HSN) code is essential for accurate Goods and Services Tax (GST) compliance. The HSN code for a “handle” isn’t singular; it varies significantly based on the material, its intended use, and the product it’s a part of. This guide will help you navigate the complexities of HSN codes for handles.

Classifying Handles by Material and Purpose

The HSN system categorizes goods systematically, and handles are no exception. Their classification primarily depends on the material they are made from and the article they belong to or are designed for.

• Wooden Handles: Wood is a common material for handles, especially for tools and brooms. These handles are primarily covered under Chapter 44, which deals with wood and articles of wood.
  • Wooden sticks roughly trimmed but not turned, suitable for the manufacture of walking sticks, umbrellas, tool handles, or the like, fall under various sub-headings of HSN 4404, such as 44042020, 44041000, 44042010, and 44042090, all typically attracting a 12% GST rate.
  • Tools, tool bodies, tool handles, broom or brush bodies, and handles of wood are specifically categorized under HSN 44170000 (or simply 4417), with a 12% GST rate.
• Metal Handles: Handles made from base metals, often found in tools or cutlery, are classified under Chapter 82, which covers tools, implements, cutlery, and parts thereof of base metal.
  • Handles of base metal for knives with cutting blades (other than those of heading 8208) are found under HSN 82119500, with an 18% GST rate.
  • Handles of cutlery of base metal fall under HSN 82149010, attracting an 18% GST rate.
  • Interchangeable spanner sockets, with or without handles, and hand-operated spanners and wrenches (including those with handles) are classified under various sub-headings of HSN 8204, such as 82041220, 82041210, 82041120, 82042000, 82041110, generally with an 18% GST rate.
• Handles for Umbrellas and Similar Articles: Handles that are specifically parts of umbrellas, sun umbrellas, or walking sticks are classified under Chapter 66.
  • Umbrella handles with or without stems, made of plastic, are categorized under HSN 66031010, with a 12% GST rate.
  • Other handles and knobs for articles of heading 6601 to 6602 (which includes umbrellas and walking-sticks) fall under HSN 66031090, also with a 12% GST rate.
• Broomsticks (with or without handles): Broomsticks, if they include a handle or are designed to have one, are covered under Chapter 96.
  • Broomsticks (other than brooms consisting of twigs or other vegetable materials bound together, with or without handles) are classified under HSN 9603, attracting a 5% GST rate.
• Machine-Related Handles: In some cases, if a handle is an integral part of a specific machine or mechanical appliance, its HSN code would be derived from the HSN chapter of that machine. For example, pumps primarily designed to handle water are classified under HSN 84137010, with a 28% GST rate, indicating that any integral handle would be part of this classification.

The Importance of Correct HSN Codes

• Accurate GST Application: Using the precise HSN code ensures that the correct GST rate is applied, preventing discrepancies and potential penalties.
• Seamless Trade: HSN codes standardize product classification, facilitating smoother domestic and international trade operations.
• Efficient Record-Keeping: Proper HSN classification aids in organized inventory management, invoicing, and tax filing processes.