Toner refilling HSN Code

Understanding the “Toner Refilling” HSN Code

Businesses and individuals who rely on printers, the cost of toner can be significant. This has led to a thriving market for “toner refilling” services, offering a more economical and environmentally friendly alternative to purchasing new cartridges. However, when it comes to Goods and Services Tax (GST) in India, determining the precise Harmonized System of Nomenclature (HSN) code for “toner refilling” can be a bit tricky. This is because “toner refilling” often involves both the supply of goods (toner powder) and the provision of a service (the actual refilling process).

While the provided data has limited direct entries for “toner refilling,” we can infer the most likely classifications based on related items and common GST practices.

Understanding the Dual Nature of Toner Refilling

“Toner refilling” typically comprises two key components:

1. The Toner Powder (Goods): This is the consumable material that is poured into the empty cartridge.
2. The Refilling Service (Service): This involves the labor and expertise of opening, cleaning, and refilling the cartridge.

Under GST, goods and services are classified differently. Goods fall under HSN codes, while services are typically classified under Services Accounting Codes (SAC). However, for composite supplies (where both goods and services are involved), the “principal supply” determines the classification. In the case of toner refilling, if the value of the toner powder is substantial and the refilling is incidental, it might be treated as a supply of goods. Conversely, if the service component is predominant, it could be treated as a service.

Navigating Relevant HSN Codes for Toner Refilling (Based on Goods Component)

While the provided data doesn’t explicitly list “toner powder” as a separate HSN, it offers clues:

• Parts and Accessories of Printers (Chapter 84): Toner cartridges, even when empty or refilled, are considered parts or accessories of printers.
  • HSN 84439952: This HSN code often covers “Cartridges Or Toners, Without Print Head Assembly.” If the refilling service essentially provides a “remanufactured” cartridge, this HSN might apply to the cartridge itself.
  • HSN 84439959: This is a broader “Other” category for “Parts And Accessories Of Printers, Copying Machines And Facsimile Machines.” Refilled cartridges, particularly if sold as ready-to-use units, might fall here.
  • HSN 84433990: This code covers “Printers, Copying Machines And Facsimile Machines…: Other.” While not directly for refilling, it relates to the equipment that uses toner.
  • These HSN codes generally attract an 18% GST rate, with effective dates around July 1, 2017.
• Chemical Preparations for Photographic Uses (Chapter 37/32): In some interpretations, toner powder, being a chemical preparation used for creating impressions, could align with certain photographic chemicals.
  • HSN 37079090: “OTHR CHMCL PRPRNS FR PHOTGRPHC USES NES” (Not Elsewhere Specified). Some sources indicate this HSN has been used for “Toner, Hp Printer, Toner Refilling, Toner Powder.” This typically has an 18% GST rate.
  • HSN 3215: This chapter covers “Printing Ink, Writing Or Drawing Ink And Other Inks.” While primarily for liquid inks, some interpretations might draw parallels, especially for black printing ink. Various sub-codes under HSN 3215 have a 12% GST rate, effective from November 15, 2017.
  • It is worth noting that some older classifications or regional variations might have applied lower rates for specific chemical preparations that could include toner. One entry even showed HSN 081220 for “OTHR CHMCL PRPRNS FR PHOTGRPHC USES NES” with a 5% GST rate, but this seems less common for modern toner.
• Typewriter or Similar Ribbons, Inked or Otherwise Prepared (Chapter 96):
  • HSN 96121010: This covers “Computer Printer Ribbon,” which functions similarly to a toner cartridge in providing impressions. This has an 18% GST rate, effective from July 1, 2017. This indicates that other consumables for printers are generally taxed at 18%.

The Service Aspect of Toner Refilling (SAC Code)

When the “toner refilling” is predominantly a service, it would fall under Services Accounting Codes (SAC). While the provided data does not explicitly include SAC codes for “toner refilling,” services of this nature typically fall under broader categories like:

• Maintenance, Repair and Installation Services: Often classified under SAC 9987. This category generally attracts an 18% GST rate.

Why Correct HSN/SAC Classification is Paramount

• Ensuring GST Compliance: Accurate HSN/SAC code usage ensures businesses correctly charge and remit GST, avoiding fines and legal issues.
• Clear Invoicing: Proper classification provides clarity for customers and helps in maintaining transparent financial records.
• Avoiding Disputes: A clear HSN/SAC code minimizes ambiguities and potential disputes with tax authorities.

Important Note: The HSN codes provided in the data are specific to goods. For “toner refilling” as a service, if the service component is significant, it would likely fall under a relevant SAC code, generally attracting an 18% GST rate. Businesses providing “toner refilling” should consult with a tax professional to determine the most appropriate classification based on the specific nature of their supply (predominantly goods or predominantly service).