Purse HSN Code

Understanding the HSN Code for Purses

A purse is more than just an accessory; it’s an essential item for carrying daily necessities. From stylish handbags to compact wallets, purses come in an endless variety of materials, designs, and sizes. For businesses dealing with purses in India, correctly identifying their HSN (Harmonized System of Nomenclature) code is crucial for accurate GST (Goods and Services Tax) compliance. The key to classifying a purse lies in its outer surface material.

The HSN system provides a globally standardized method for categorizing goods for trade and taxation. When it comes to purses, most will find their home under Chapter 42: “Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut).”

Purses: Classification by Material

Within Chapter 42, the relevant heading is 4202: “Trunks, Suit-Cases, Vanity-Cases, Executive-cases, Brief-Cases, School Satchels, Spectacle Cases, Binocular Cases, Camera Cases, Musical Instrument Cases, Gun Cases, Holsters And Similar Containers; Travelling-Bags, Insulated Food Or Beverages Bags, Toilet bags, rucksacks, handbags, shopping-bags, wallets, purses, map-cases…”

The provided data specifically highlights HSN code 42023120 with the description “Trunks, Suit-Cases, Vanity-Cases, Executive-cases, Brief-Cases, School Satchels, Spectacle Cases, Binocular Cases, Camera Cases, Musical Instrument Cases, Gun Cases, Holsters And Similar Containers; Travelling-Bags, Insulated Food Or Beverages Bags, Toilet”. While this specific entry in the provided data appears truncated, comprehensive HSN resources clarify the sub-categories under 4202 related to purses:

• Purses with Outer Surface of Leather, Composition Leather, or Patent Leather: This category often includes leather wallets and purses. A common HSN code here is 42023120 (Wallets and purses, of leather) or 42023190 for other such articles.
• Purses with Outer Surface of Plastic Sheeting or Textile Materials: This covers a wide range of purses made from synthetic materials, fabric, or combinations thereof. Common HSN codes here include 42023290 (for other wallets, purses, etc., with outer surface of plastic sheeting or textile materials) and 42022290 or 42022990 for other bags made of such materials.
• Purses of Other Materials: If the outer surface is made of vulcanized fiber, paperboard, or other materials not specified, specific subheadings under 4202 might apply. For example, HSN 42029900 generally covers “Other similar containers” of heading 4202, which can include various materials.

GST Rate for Purses

Regardless of the specific material – whether leather, synthetic, or textile – most purses falling under HSN 4202 consistently attract an 18% GST rate in India. This rate has been effective since July 1, 2017, with the provided data indicating a specific effective date of November 15, 2017, possibly for a clarification or specific sub-category. This 18% rate applies to handbags, wallets, and similar items carried in the pocket or handbag, irrespective of their material.

In conclusion, for businesses dealing with purses, the key is to pinpoint the outer surface material to ensure accurate HSN classification within Chapter 42, leading to the application of the prevalent 18% GST rate.