Rakhi HSN Code

Understand the Rakhi HSN Code and Its GST Implications

Understanding the Harmonized System of Nomenclature (HSN) code for Rakhi is essential for businesses involved in its manufacturing, distribution, and sale. This classification system helps categorize goods for taxation and customs purposes. Let’s explore the relevant HSN codes and the applicable Goods and Services Tax (GST) rates for Rakhi based on the provided data.

Identify the HSN Code for Rakhi

Based on the provided data, Rakhis, being a type of decorative thread or bracelet often adorned with embellishments, could fall under different HSN codes depending on their material and presentation.

• HSN 63079090: This code covers “Other Made Up Articles, Including Dress Patterns Other: Other” within the chapter of “Other made up textile articles; sets; worn clothing and worn textile articles; rags.” If Rakhis are primarily made of textile materials, they might be classified under this code.
• HSN 71179090: This code pertains to “Imitation Jewellery – Other: Other” within the chapter of “Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewelry; coin.” If Rakhis incorporate significant non-precious metal or imitation jewelry components, this classification might be applicable.

Understand the GST Rate for Rakhi

The GST rates associated with the identified HSN codes are:

• For HSN 63079090, the GST rate is 12%, effective from 15/11/2017 (with an initial rate of 12% from 01/07/2017).
• For HSN 71179090, the GST rate is 3%, effective from 01/07/2017.

It’s important to note the significant difference in GST rates depending on how the Rakhi is classified. The material composition and the primary nature of the product will determine the appropriate HSN code and the corresponding GST rate.

Note Other Mentioned HSN Codes

The provided data also includes another HSN code:

• HSN 96040000: This code is for “Hand Sieves And Hand Riddles” and carries an 18% GST rate effective from 01/07/2017. This code is not directly relevant to Rakhis.

Determine the Correct Classification

To accurately determine the HSN code and the applicable GST rate for a specific Rakhi, businesses need to consider its primary material composition and its essential character. Rakhis predominantly made of textile threads with minor decorative elements might fall under HSN 63079090, attracting a 12% GST. However, Rakhis with a significant portion constituting imitation jewelry could be classified under HSN 71179090 with a 3% GST rate.