Loudspeaker HSN Code

Understand the Loudspeaker HSN Code for GST

For businesses in India dealing with loudspeakers, understanding the correct HSN (Harmonized System of Nomenclature) code is essential for accurate GST compliance and smooth trade operations. The HSN system provides a globally recognized method for classifying goods, simplifying everything from taxation to customs procedures.

The Loudspeaker HSN Code and GST Rate

When it comes to loudspeakers, which are integral to sound reproduction, their HSN classification is quite specific and falls under the broader category of “Electrical machinery and equipment and parts thereof.”

Based on the provided data, loudspeakers, whether or not mounted in their enclosures, primarily fall under HSN codes beginning with 8518.

Here’s a breakdown of the relevant HSN codes for loudspeakers and related items:

• 85182100: “Loudspeakers, whether or not mounted in their enclosures – Single loudspeakers, mounted in their enclosures.” This is a highly specific code for individual loudspeakers already housed in their cabinets.
• 85182200: “Loudspeakers, whether or not mounted in their enclosures – Multiple loudspeakers, mounted in the same enclosure.” This applies to speaker systems with multiple drivers within a single cabinet.
• 85182900: “Loudspeakers, whether or not mounted in their enclosures – Other” This is a broader category for loudspeakers not covered by the more specific 85182100 or 85182200.
• 85181000: This code covers “Microphones And Stands Therefor; Loudspeakers, Whether Or Not Mounted In Their Enclosures; Headphones And Earphones, Whether Or Not Combined With A Microphone, And Sets Consisting Of A Microphone And One Or More Loudspeakers; Audiofrequency Electric Ampli[fiers].” While it includes loudspeakers, more specific codes within 8518.2 are usually preferred when possible.
• 85189000: This HSN code is for “Parts” of the articles mentioned in HSN 8518, which would include parts of loudspeakers.

All these HSN codes related to loudspeakers and their parts consistently attract an 18% GST rate. This rate has been effective since July 1, 2017, with a revision date of November 15, 2017, confirming its stability.

Why HSN Codes are Essential

Accurate HSN code classification is fundamental for several reasons:

• GST Compliance: The HSN code directly determines the applicable GST rate, ensuring businesses charge and remit the correct amount of tax to the government.
• Seamless Trade: HSN codes provide a universal language for goods, simplifying customs procedures for both domestic and international trade, reducing delays and errors.
• Avoiding Penalties: Using the wrong HSN code can lead to penalties, fines, and complications during tax audits.
• Inventory Management: Proper classification aids in efficient inventory tracking, procurement, and overall supply chain management.