Id Cards HSN Code

Understanding the HSN Code for ID Cards in India

In today’s security-conscious world, ID cards are ubiquitous, serving various purposes from access control to personal identification. For businesses involved in their manufacture, sale, or distribution in India, understanding the correct HSN (Harmonized System of Nomenclature) code is crucial for accurate GST (Goods and Services Tax) compliance. The classification of an ID card primarily depends on its technological capabilities and material.

The ID Card HSN Codes

The provided data strongly indicates that ID cards, especially those with embedded technology, fall under Chapter 85: 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.

Smart Cards: The Primary Category

If an ID card incorporates a chip, magnetic strip, or other means of electronic data storage or processing, it is classified as a “Smart Card.” This is the most direct and common classification for modern ID cards.

• HSN Code 8523: This broad heading covers “Discs, Tapes, Solid-State Non-Volatile Storage Devices, Smart Cards And Other Media For The Recording Of Sound Or Of Other Phenomena, Whether Or Not Recorded, Including Matrices And Masters Production Of Discs, But Excluding Products Of Chapter 37.”
  • 852352: This sub-heading specifically refers to “Smart Cards.”
    • 85235210: This code applies to “Semi-Conductor Media” such as “Smart Cards” designed for recording sound or other phenomena.
  • The broader 8523 itself is listed with an 18% GST rate.
  • Other relevant sub-headings under 8523 that mention “Smart Cards” include 85238090, 85232970, 85232100, 85232960, 85232940, 85232990, 85235910, 85235100, and 85238040. These codes cover various types of smart cards, including those with magnetic stripes or other recording capabilities.
  • All “Smart Cards” and related recording media under HSN 8523 consistently attract an 18% GST rate, effective from July 1, 2017.

Crucial Point: Most modern ID cards, including Aadhaar cards, corporate access cards, and university IDs, would fall under the “Smart Card” classification due to their embedded electronic features or magnetic strips.

Distinguishing from Other “Card” Related HSN Codes

The provided data also lists other “card” related items that are distinct from ID cards:

• Chapter 49 (Printed books, newspapers, pictures and other products of the printing industry):
  • HSN Code 49090090: This covers “Printed Or Illustrated Postcards; Printed Cards Bearing Personal Greetings, Messages Or Announcements.” This refers to simple printed cards, not secure ID cards, and has an 18% GST rate.
• Chapter 48 (Paper or paperboard):
  • HSN Code 4817: This covers “Envelopes, Letter Cards, Plain Postcards And Correspondence Cards, Of Paper Or Paperboard.”
    • 48171000: Specifically for “Envelopes.”
  • These are basic paper stationery items and are not ID cards. They also have an 18% GST rate.
• Chapter 92 (Musical instruments):
  • HSN Code 9209: This covers “Parts (For Example, Mechanisms For Musical Boxes) And Accessories (For Example, Cards, Discs And Rolls For Mechanical Instruments) Of Musical Instruments.”
    • Specific sub-headings like 92099100, 92099200, and 92099400 refer to parts and accessories for pianos, other musical instruments, etc. These “cards” are for mechanical musical instruments and are completely unrelated to personal identification cards. They have an 18% GST rate.

Therefore, when classifying an ID card, the key is to determine if it possesses any “smart” features for data recording or storage. If it does, HSN 8523 is the correct classification. If it’s a simple, non-electronic printed card for identification purposes (like a very basic paper ID, though less common now), it might fall under printed matter, but the primary focus of modern ID cards is on their smart functionality.