Regulator HSN Code

Understanding the Regulator HSN Code

The term “regulator” can refer to a diverse range of products, from devices that control electrical voltage to chemicals that manage plant growth. For businesses, accurately identifying the Harmonized System of Nomenclature (HSN) code for a “regulator” is paramount for ensuring correct Goods and Services Tax (GST) compliance. The HSN code for a regulator is not uniform; instead, it is determined by the regulator’s specific function, its underlying technology, and its intended application. This blog post will demystify the HSN codes associated with various types of regulators and their corresponding GST rates.

Understanding Regulator Classifications by Function

The HSN system precisely categorizes products, and regulators are no exception. Their classification primarily hinges on their functional purpose and the industry they serve.

• Plant-Growth Regulators: In the agricultural and chemical sectors, “regulators” often refer to plant-growth regulators. These are chemical compounds used to modify plant physiological processes.
  • Plant-growth regulators, along with insecticides, rodenticides, fungicides, and herbicides, are broadly classified under HSN Chapter 38, which covers miscellaneous chemical products.
  • Specific sub-headings within HSN 3808, such as 38083010, 38089250, 38081035, 38089320, 38083030, 38089123, 38081034, 38081024, 38081026, 38089124, 38089192, 38083020, 38089010, 38089340, 38083040, and 38089134, all apply to various forms and preparations of these products, including plant-growth regulators.
  • All these chemical regulators generally attract an 18% GST rate. These rates were mostly effective from July 1, 2017, with some revisions on January 25, 2018.
• Regulators for Hydraulic Turbines and Water Wheels: In the domain of heavy machinery and power generation, “regulators” are critical components for controlling the operation of hydraulic turbines and water wheels.
  • These specialized regulators fall under HSN Chapter 84, which covers nuclear reactors, boilers, machinery, and mechanical appliances.
  • Specifically, within HSN 8410, which addresses hydraulic turbines and water wheels and regulators therefor, these regulators are classified. For instance, regulators for hydraulic turbines of a power exceeding 10,000 kW (like HSN 84101390) or exceeding 1,000 kW but not exceeding 10,000 kW (like HSN 84101220) are listed.
  • These regulators for hydraulic turbines and water wheels typically have an 18% GST rate, effective from July 1, 2017.
• Voltage Regulators and Stabilizers: In the electrical and electronics sector, “regulators” refer to devices that maintain a constant voltage level, protecting electronic equipment from fluctuations.
  • These electrical regulators are categorized under HSN Chapter 85, which deals with electrical machinery and equipment and parts thereof.
  • Specifically, voltage regulators and stabilizers (other than automatic) fall under HSN 85044040, which is a sub-heading of HSN 8504 for electrical transformers, static converters, and inductors.
  • These electrical regulators also attract an 18% GST rate. This rate was effective from July 1, 2017, with subsequent revisions on November 15, 2017, and August 1, 2019.

The Critical Role of Correct HSN Codes

• Ensuring GST Compliance: Accurate HSN code application is fundamental for businesses to correctly calculate and remit GST, avoiding penalties and legal complications.
• Facilitating Trade Operations: The universal nature of HSN codes streamlines domestic and international trade, making it easier to classify and transport goods.
• Streamlining Business Processes: Precise HSN classification aids in efficient inventory management, accurate invoicing, and simplified tax filing procedures.