GST rates and HSN code for Insulation.
| Chapter | Description | HSN Code | Rate (%) | CESS (%) | Effective Date | Rate Revision |
|---|---|---|---|---|---|---|
| Services | Insulation Services | 995465 | 1.5/5/7.5/12/18 | Nil Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. Provided that credit of input tax charged on goods and services has not been taken [Please refer to Explanation no. (iv)]. Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be. Provided that carpet area of the affordable residential apartments as specified in the entry in column (3) relating to this item, is not less than 50 per cent. of the total carpet area of all the apartments in the project; Provided also that for the purpose of determining whether the apartments at the time of supply of the service are affordable residential apartments covered by sub- clause (a) of clause (xvi) of paragraph 4 below or not, value of the apartments shall be the value of similar apartments booked nearest to the date of signing of the contract for supply of the service specified in the entry in column (3) relating to this item; Provided also that in case it finally turns out that the carpet area of the affordable residential apartments booked or sold before or after completion, for which gross amount actually charged was forty five lakhs rupees or less and the actual carpet area was within the limits prescribed in sub- clause (a) of clause (xvi) of paragraph 4 below, was less than 50 per cent. of the total carpet area of all the apartments in the project, the recipient of the service, that is, the promoter shall be liable to pay such amount of tax on reverse charge basis as is equal to the difference between the tax payable on the service at the applicable rate but for the rate prescribed herein and the tax actually paid at the rate prescribed herein; Provided that the central tax at the rate specified in column (4) shall be paid in cash, that is, by debiting the electronic cash ledger only; Provided also that credit of input tax charged on goods and services used in supplying the service hasnot been taken except to the extent as prescribed in Annexure I in the case of REP other than RREP and in Annexure II in the case of RREP; Provided also that the registered person shall pay, by debit in the electronic credit ledger or electronic cash ledger, an amount equivalent to the input tax credit attributable to construction in a project, time of supply of which is on or after 1st April, 2019, which shall be calculated in the manner as prescribed in the Annexure I in the case of REP other than RREP and in Annexure II in the case of RREP; Provided also that where a registered person (landowner- promoter) who transfers development right or FSI (including additional FSI) to a promoter (developer- promoter) against consideration, wholly or partly, in the form of construction of apartments,- (i) the developer- promoter shall pay tax on supply of construction of apartments to the landowner- promoter, and (ii) such landowner – promoter shall be eligible for credit of taxes charged from him by the developer promoter towards the supply of construction of apartments by developer- promoter to him, provided the landowner- promoter further supplies such apartments to his buyers before issuance of completion certificate or first occupation, whichever is earlier, and pays tax on the same which is not less than the amount of tax charged from him on construction of such apartments by the developer- promoter. Explanation. – (i) “developer- promoter” is a promoter who constructs or converts a building into apartments or develops a plot for sale, (ii) “landowner- promoter” is a promoter who transfers the land or development rights or FSI to a developer- promoter for construction of apartments and receives constructed apartments against such transferred rights and sells such apartments to his buyers independently. Provided also that eighty percent of value of input and input services, [other than services by way of grant of development rights, long term lease of land (against upfront payment in the form of premium, salami, development charges etc.) or FSI (including additional FSI), electricity, high speed diesel, motor spirit, natural gas], used in supplying the service shall be received from registered supplier only; Provided also that inputs and input services on which tax is paid on reverse charge basis shall be deemed to have been purchased from registered person; Provided also that where value of input and input services received from registered suppliers during the financial year (or part of the financial year till the date of issuance of completion certificate or first occupation of the project, whichever is earlier) falls short of the said threshold of 80 per cent., tax shall be paid by the promoter on value of input and input services comprising such shortfall at the rate of eighteen percent on reverse charge basis and all the provisions of the Central Goods and Services Tax Act, 2017 (12 of 2017) shall apply to him as if he is the person liable for paying the tax in relation to the supply of such goods or services or both; Provided also that notwithstanding anything contained herein above, where cement is received from an unregistered person, the promoter shall pay tax on supply of such cement at the applicable rates on reverse charge basis and all the provisions of the Central Goods and Services Tax Act, 2017 (12 of 2017), shall apply to him as if he is the person liable for paying the tax in relation to such supply of cement; (Please refer to the illustrations in annexure III) Explanation. – 1. The promoter shall maintain project wise account of inward supplies from registered and unregistered supplier and calculate tax payments on the shortfall at the end of the financial year and shall submit the same in the prescribed form electronically on the common portal by end of the quarter following the financial year. The tax liability on the shortfall of inward supplies from unregistered person so determined shall be added to his output tax liability in the month not later than the month of June following the end of the financial year. 2. Notwithstanding anything contained in Explanation 1 above, tax on cement received from unregistered person shall be paid in the month in which cement is received. 3. Input Tax Credit not availed shall be reported every month by reporting the same as ineligible credit in GSTR-3B [Row No. 4 (D)(2)]. Provided that in case of ongoing project, the registered person shall exercise one time option in the Form at Annexure IV to pay central tax on construction of apartments in a project at the rates as specified for item (ie) or (if), as the case may be, by the 20th of May, 2019; Provided also that where the option is not exercised in Form at annexure IV by the 20th of May, 2019, option to pay tax at the rates as applicable to item (i) or (ia) or (ib) or (ic) or (id) above, as the case may be, shall be deemed to have been exercised; Provided also that invoices for supply of the service can be issued during the period from 1st April 2019 to 20th May 2019 before exercising the option, but such invoices shall be in accordance with the option to be exercised.; | 01/04/2019 25/01/2018 13/10/2017 21/09/2017 22/08/2017 | – |
| Wood and articles of wood; wood charcoal | Fibreboard Of Wood Or Other Ligneous Materials, Whether Or Not Bonded With Resins Or Other Organic Substances – Fibreboard Of A Density Exceeding 0.5 G/C – M3 – But Not Exceeding 0.8 G/C – M3 – : Other : Insulation Board | 44112910 | 18% | – | 15/11/2017 | – |
| Fibreboard Of Wood Or Other Ligneous Materials, Whether Or Not Bonded With Resins Or Other Organic Substances – Other : Other: Other Insulation Board | 44119930 | 18% | – | 15/11/2017 | – | |
| Fibreboard Of Wood Or Other Ligneous Materials, Whether Or Not Bonded With Resins Or Other Organic Substances – Other : Not Mechanically Worked Or Surface Covered: Other Insulation Board | 44119130 | 18% | – | 15/11/2017 | – | |
| Fibre Board Of Wood Or Other Ligneous Materials, Whether Or Not Bonded With Resins Or Other Organic Substances – Other:Of A Density Not Exceeding 0.5 Gm/Cm3:— Not Mechanically Worked Or Surface Covered:—- Insulation Board | 44119411 | 18% | – | 15/11/2017 | – | |
| Fibreboard Of Wood Or Other Ligneous Materials, Whether Or Not Bonded With Resins Or Other Organic Substances – Other : Not Mechanically Worked Or Surface Covered: Accoustic Insulation Board | 44119120 | 18% | – | 15/11/2017 | – | |
| Particle Board, Oriented Strand Board (Osb) And Similar Board (For Example, Waferboard) Of Wood Or Other Ligneous Materials,Whether Or Not Agglomerated With Resins Or Other Organic Binding Substances — Other — Insulation Board And Hard Board | 44109020 | 18% | – | 15/11/2017 | – | |
| Fibre Board Of Wood Or Other Ligneous Materials, Whether Or Not Bonded With Resins Or Other Organic Substances – Other:– Of A Density Exceeding 0.5 Gm/Cm3 But Not Exceeding 0.8 Gm/Cm3:— Not Mechanically Worked Or Surface Covered:—- Insulation Board | 44119311 | 18% | – | 15/11/2017 | – | |
| Particle Board, Oriented Strand Board (Osb) And Similar Board (For Example, Waferboard) Of Wood Or Other Ligneous Materials,Whether Or Not Agglomerated With Resins Or Other Organic Binding Substances – Of Wood: — Particle Board:— Insulation Board And | 44101120 | 18% | – | 15/11/2017 | – | |
| Fibreboard Of Wood Or Other Ligneous Materials, Whether Or Not Bonded With Resins Or Other Organic Substances – Fibreboard Of A Density Exceeding 0.5 G/C – M3 – But Not Exceeding 0.8 G/C – M3 – : Not Mechanically Worked Or Surface Covered:Insulation Board | 44112110 | 18% | – | 15/11/2017 | – | |
| Particle Board And Similar Board (For Example, Oriented Strand Board And Wafer Board) Of Wood Or Other Ligneous Materials, Whether Or Not Agglomerated With Resins Or Other Organic Binding Substances- Other: Plastic Laminated Sheets: Insulation Board And H | 44109011 | 18% | – | 15/11/2017 | – | |
| Fibreboard Of Wood Or Other Ligneous Materials, Whether Or Not Bonded With Resins Or Other Organic Substances – Other : Not Mechanically Worked Or Surface Covered: Insulation Board (Homogeneous) | 44119110 | 18% | – | 15/11/2017 | – | |
| Particle Board And Similar Board (For Example, Oriented Strand Board And Wafer Board) Of Wood Or Other Ligneous Materials, Whether Or Not Agglomerated With Resins Or Other Organic Binding Substances- Other: Other : Insulation Board And Hardboard | 44109092 | 18% | – | 15/11/2017 | – | |
| Fibreboard Of Wood Or Other Ligneous Materials, Whether Or Not Bonded With Resins Or Other Organic Substances – Fibre Board Of A Density Exceeding 0.35 G/C – M3 – But Not Exceeding 0.5 G/ C – M3 – : Not Mechanically Worked Or Surface Covered: Insulation B | 44113110 | 18% | – | 15/11/2017 | – | |
| Fibreboard Of Wood Or Other Ligneous Materials, Whether Or Not Bonded With Resins Or Other Organic Substances – Fibre Board Of A Density Exceeding 0.35 G/C – M3 – But Not Exceeding 0.5 G/ C – M3 – : Other: Insulation Board | 44113910 | 18% | – | 15/11/2017 | – | |
| Particle Board And Similar Board (For Example, Oriented Strand Board And Wafer Board) Of Wood Or Other Ligneous Materials, Whether Or Not Agglomerated With Resins Or Other Organic Binding Substances – Other, Of Wood: Other: Insulation Board And Hardboard | 44103920 | 18% | – | 15/11/2017 | – | |
| Fibre Board Of Wood Or Other Ligneous Materials, Whether Or Not Bonded With Resins Or Other Organic Substances – Other:– Of A Density Exceeding 0.5 Gm/Cm3 But Not Exceeding 0.8 Gm/Cm3: — Other:—- Insulation Board | 44119321 | 18% | – | 15/11/2017 | – | |
| Fibreboard Of Wood Or Other Ligneous Materials, Whether Or Not Bonded With Resins Or Other Organic Substances – Other : Other: Insulation Board (Homogenous) | 44119910 | 18% | – | 15/11/2017 | – | |
| Fibre Board Of Wood Or Other Ligneous Materials, Whether Or Not Bonded With Resins Or Other Organic Substances – Other:Of A Density Not Exceeding 0.5 Gm/Cm3:— Other: —-Insulation Board | 44119421 | 18% | – | 15/11/2017 | – | |
| Ceramic products | Refractory Bricks, Blocks, Tiles And Similar Refractory Ceramic Constructional Goods, Other Than Those Of Siliceous Fossil Meals Or Similar Siliceous Earths – Other: Vermiculite Insulation Bricks | 69029030 | 18% | – | 01/07/2017 | – |
“Insulation” is a broad term that covers a wide array of materials and services designed to prevent the transfer of heat, sound, or electricity. As such, there isn’t a single HSN (Harmonized System of Nomenclature) code for “insulation.” Instead, its classification for GST purposes depends entirely on the type of material used, or if it’s an insulation service.
When we talk about insulation materials, the HSN code typically falls under different chapters based on the material’s composition. For instance, many common insulation boards are made of wood or other ligneous materials. These can be found under Chapter 44, specifically within HSN codes like 4411 and 4410. You’ll see descriptions such as “Fibreboard Of Wood Or Other Ligneous Materials… Insulation Board,” or “Particle Board… Insulation Board.” These wood-based insulation boards generally attract an 18% GST rate.
Another specific example is vermiculite insulation bricks, which are a type of refractory ceramic constructional good. These are classified under Chapter 69 (Ceramic products) with HSN code 69029030, also attracting an 18% GST rate.
Beyond materials, “insulation” also refers to a service. “Insulation Services” itself has a dedicated HSN/SAC (Service Accounting Code) of 995465. This service code covers various types of insulation work, including weather-proofing, thermal insulation for pipes and ducts, sound insulation, and fireproofing. The GST rate for insulation services can vary, often seen at 1.5/5/7.5/12/18%, depending on the nature of the service and specific conditions, especially in relation to construction projects.
Therefore, when identifying the HSN code for “insulation,” always consider whether you are dealing with a physical product or a service, and then delve into the specific material or nature of that product/service for precise classification.
An HSN code is a standardized system for classifying goods worldwide, used for customs and taxation, including GST.
No, the HSN code for insulation varies significantly based on the material or whether it’s a service.
Wood-based insulation boards typically fall under HSN codes in Chapter 44, such as 4410 or 4411 (e.g., 44112910, 44119930).
Most wood-based insulation boards have an 18% GST rate.
This HSN/SAC includes services like weather-proofing, thermal insulation of pipes, sound insulation, and fireproofing work.
GST rates for insulation services can vary, often ranging from 1.5% to 18% depending on the specific service provided and project type.
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