Sprocket HSN Code

Understanding the Sprocket HSN Code

Sprockets are fundamental components in various mechanical systems, from the bicycles we ride to heavy industrial machinery. These toothed wheels, designed to mesh with chains or tracks, are essential for power transmission. For businesses in India dealing with sprockets, understanding the correct HSN (Harmonized System of Nomenclature) code is crucial for accurate GST (Goods and Services Tax) compliance. The “Sprocket HSN Code” is not a single, universal number, but rather depends on the specific application of the sprocket.

Sprockets in the World of Vehicles: Chapter 87

When it comes to sprockets designed for vehicles, particularly bicycles, the classification falls under Chapter 87 of the HSN system. This chapter covers “Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof.”

Specifically, within this chapter, you’ll find bicycle-related sprockets under HSN heading 8714: “Parts and accessories of vehicles of headings 8711 to 8713.” Headings 8711 to 8713 include motorcycles, bicycles, and carriages for disabled persons.

For bicycle sprockets, the relevant sub-headings are found under 871493: “Hubs, other than coaster braking hubs and hub brakes, and free-wheel sprocket-wheels.”

• 87149320: This specifically covers “Bicycle Free-Wheels,” which are a type of sprocket assembly.
• 87149390: This is a broader category for “Other” parts within “Hubs, other than coaster braking hubs and hub brakes, and free-wheel sprocket-wheels.” This would encompass other types of bicycle sprockets not explicitly covered by 87149320.

The GST rate for bicycle sprockets under HSN 871493 has seen revisions. As per the provided data, these items attract a 28% GST rate, which became effective from August 1, 2019, with the original effective date being July 1, 2017. However, recent public information suggests that bicycle parts, including sprockets, are generally subject to a 12% GST. It is crucial to always cross-reference with the latest official GST notifications from the government or a tax professional for the most current rates.

Sprockets as General Transmission Elements: Chapter 84

Beyond bicycles, sprockets are widely used in various machinery for power transmission. These types of sprockets generally fall under Chapter 84 of the HSN system: “Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof.”

Specifically, for chain sprockets that are presented separately as transmission elements for machinery, the relevant HSN heading is 8483: “Transmission shafts (including cam shafts and crank shafts) and cranks; bearing housings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof.”

• 84839000: This code broadly covers “Toothed wheels, chain sprockets and other transmission elements presented separately; parts of transmission shafts, ball screws, couplings and other articles of heading 8483, n.e.s.” This is the most common HSN code for general industrial sprockets.
• 84834000: While this code covers “Gears and gearing for machinery,” it explicitly excludes “toothed wheels, chain sprockets and other transmission elements presented separately.” This means if a sprocket is sold individually, 84839000 is usually more appropriate.

Sprockets under HSN 8483 (as parts of machinery for power transmission) typically attract an 18% GST rate.

The Importance of Accurate HSN Classification

Properly classifying your sprockets with the correct HSN code is vital for several reasons:

• GST Compliance: Ensures accurate calculation and remittance of Goods and Services Tax.
• Seamless Trade: Facilitates smooth import and export processes, avoiding delays and customs issues.
• Legal Protection: Safeguards your business from potential penalties arising from misclassification.

Given the nuances of HSN classification, especially for components used across diverse industries, always consult the latest GST notifications and seek advice from a tax expert to ensure your classification is precise.