Punching machine HSN Code

Understand the HSN Code for Your Punching Machine

Punching machines are essential tools in various industries, from metalworking and fabrication to paper and packaging. For businesses that manufacture, import, or sell these powerful machines, correctly classifying them under the Harmonized System of Nomenclature (HSN) is crucial for accurate GST compliance. Let’s explore the HSN codes and GST rates for punching machines.

Classify Your Punching Machine

Punching machines are classified under Chapter 84 of the HSN, which covers “Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof.”

The broad HSN code for machine-tools used for working metal by processes like bending, folding, shearing, punching, or notching is 8462. This heading is very specific and covers a wide range of machines used to deform or cut metal.

Your data provides several 8-digit HSN codes under this heading that are relevant to punching machines, including:

• 84629913: This is for “Vertical gap ofc frame presses” for working metal.
• 84621011: This code is for specific forging or die-stamping machines.
• 84629970: This HSN code is for “Coining joint presses.”
• 84624920: This is for “Combination of punching, shearing and cropping machines.”
• 84629990: This is a general “Other presses (mechanical and manual)” code.
• 84621020: This is for other “Forging machines.”
• 84629915: This is for “Vertical forging presses.”
• 84621012: This is for “Hammers” used in metal working.
• 84623910: This HSN code covers “Plate and sheet shears (guillotine).”
• 84621014: This is for “Hammers” with a double-acting counter-blow.

The variety of codes under 8462 shows that the classification depends on the specific function and type of the punching machine (e.g., a press, a combination machine, etc.).

Understand the Applicable GST Rate

The GST rate for punching machines and related metal-working machine tools under HSN 8462 is consistently 18%. This rate applies to the machine itself and is the standard for most industrial machinery.

The data also includes HSN codes under Chapter 82 for “Interchangeable tools” used with these machines, such as dies for pressing, stamping, or punching. These tools also have a GST rate of 18%.

Differentiate the Machine from Its Tools

It’s important to make a clear distinction between the punching machine itself and the interchangeable tools, dies, or punches used with it.

• Punching Machine (HSN 8462): This is the main piece of machinery that performs the punching operation.
• Punching Tools/Dies (HSN 8207): These are the interchangeable parts or “punches” that are inserted into the machine to create the desired shape or hole.

Both the machine and its tools fall under the 18% GST slab, but they are classified under different HSN chapters. Correctly identifying the product ensures accurate billing and tax compliance.

Claim Input Tax Credit (ITC)

For GST-registered businesses, a punching machine is a capital good. This means you can claim Input Tax Credit (ITC) on the 18% GST paid on the purchase of the machine. To do this, you must have a proper tax invoice from the supplier that specifies the HSN code and the GST amount.

By correctly classifying your punching machine and its tools, you can navigate the GST system effectively and maintain a compliant business operation.