Rack HSN Code

Understand the Rack HSN Code

Racks are ubiquitous, serving diverse purposes from organizing goods in warehouses to displaying products in retail stores, or simply holding your clothes at home. For businesses dealing with racks, understanding their Harmonized System of Nomenclature (HSN) code and the applicable Goods and Services Tax (GST) rates is essential for accurate compliance and smooth operations in India. The HSN code for a “rack” can vary significantly depending on its material, design, and intended use. Let’s explore the various classifications relevant to racks.

The HSN Code for Racks

The term “rack” is broad, so its HSN classification depends heavily on what kind of rack it is. Here’s a breakdown based on the provided data and common classifications:

• Chapter 83 – Miscellaneous articles of base metal: This chapter specifically mentions “Hat – Racks, Hat – Pegs, Brackets And Similar Fixtures.” This indicates that if the rack is a fixture made of base metal, such as a wall-mounted hat rack, it would fall under this chapter.
  • 8302: This heading covers “Base Metal Mountings, Fittings And Similar Articles Suitable For Furniture, Doors, Staircases, Windows, Blinds, Coachwork, Saddlery, Trunks, Chests, Caskets Or The Like; Base Metal Hat – Racks, Hat – Pegs, Brackets And Similar Fixtures; Castors With Mount.” Various sub-codes like 83021090, 83022000, 83024900, 83025000, 83026000, 83021010, 83023010, 83024110, 83024120, 83024200, 83023090 are listed, all of which include “Hat-Racks” in their description. These are for smaller, accessory-type racks or rack components made of base metal.
• Chapter 73 – Articles of iron or steel: This chapter is critical for many types of racks, especially those used in industrial or heavy-duty applications.
  • 7302: This heading includes “Railway Or Tramway Track Construction Material Of Iron Or Steel, The Following: Rails, Check-Rails And Rack Rails, Switch Blades, Crossing Frogs, Point Rods And Other Crossing Pieces, Sleepers (Cross-Ties), Fish – Plates, Chairs, Chair Wedges, Sole Plates.” The term “Rack Rails” is explicitly mentioned here, indicating that specific types of heavy-duty rails used in railway or similar track systems are covered. Sub-codes such as 73021010, 73024000, 73029010, 73021020, 73021090, 73029090 are listed. While these specifically refer to railway track components, they demonstrate that “rack” in an industrial context falls under iron/steel articles.
  • Broader categories within Chapter 73, like 7308 (“Structures… of iron or steel”) or 7326 (“Other articles of iron or steel”), are also commonly used for general storage racks, display racks, or shelving units made of iron or steel, especially if they form a structural element. These would be for more substantial rack systems than just “hat-racks.”
• Chapter 95 – Toys, games and sports requisites; parts and accessories thereof: This chapter applies to racks designed for specific sports equipment.
  • 95065100: This HSN code specifically mentions “Tennis, Badminton Or Similar Rack.” This clearly covers sports rackets, which are a type of “rack” in the context of sporting goods.
• Chapter 42 – Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut): This chapter covers “gut” used for rackets.
  • 42060010 and 42061010: These codes refer to “Articles Of Gut… For Rackets,” specifically for stringing sports rackets.
• Other common classifications (not explicitly in provided data but relevant from search):
  • Chapter 94 – Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings: This is a very common chapter for many types of racks considered “furniture.”
    • 9403: This broad heading covers “Other furniture and parts thereof.” Many general storage racks, display racks (e.g., for retail), shelving units, clothes racks, and kitchen racks made of metal, wood, or plastic often fall under this HSN code, particularly 94032090 (for other metal furniture) or 94036000 (for other wooden furniture) or 94037000 (for plastic furniture).
  • Chapter 39 – Plastics and articles thereof: For racks predominantly made of plastic.
    • 3924 or 3926: These headings cover “Household articles… of plastics” or “Other articles of plastics,” which would include plastic storage racks or organizers.

Therefore, correctly identifying the HSN code for a “rack” requires understanding its primary material and intended use.

Understanding the GST Rate on Racks

The GST rate on racks also varies significantly depending on their HSN classification:

• For metal fittings and small base metal racks (Chapter 83): The GST rate is 18%. This rate has been effective since November 15, 2017.
• For railway “rack rails” and other iron/steel articles (Chapter 73): The GST rate is 18%. This rate has been effective since July 1, 2017. More generally, many finished articles of iron or steel (including various types of metal racks) also attract an 18% GST.
• For sports rackets and gut for rackets (Chapter 95 and 42): The GST rate is 18%. This rate has been effective since July 1, 2017 (for Chapter 95) and November 15, 2017 (for Chapter 42).
• For general furniture-type racks (Chapter 94): The GST rate can be 12% or 18%, depending on the material.
  • Metal furniture (including racks) often falls under 18%.
  • Wooden furniture (including racks) often falls under 12%, though some specialized wooden items can be 18% or 28%.
  • Plastic furniture (including racks) generally falls under 12% or 18% depending on the specific item.

Given the diversity, always ensure you correctly classify the “rack” based on its exact nature and material to apply the appropriate GST rate. Consulting official GST notifications or a tax professional is highly recommended for complex cases.