Tool HSN Code

Understanding the “Tool” HSN Code

The world of “tools” is incredibly vast, encompassing everything from the simplest garden spade to sophisticated industrial machinery. For businesses involved in the manufacturing, trade, or distribution of tools in India, accurately classifying these items under the Harmonized System of Nomenclature (HSN) is absolutely crucial for proper Goods and Services Tax (GST) compliance. The HSN code for a “tool” is far from a single number; it depends heavily on the tool’s function, its power source, the material it works on, and its intended industry.

Let’s cut through the complexities and explore the diverse HSN codes associated with “tools.”

Categorizing Tools: Hand, Power, Machine, and Parts

The HSN system primarily organizes tools into several key chapters and headings based on their nature:

• HSN Chapter 82: Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal This chapter is the primary home for hand tools and interchangeable tools.
  • Hand Tools for Agriculture/Horticulture:
    • “Spades, Shovels, Mattocks, Picks, Hoes, Forks And Rakes; Axes, Bill Hooks And Similar Hewing Tools; Secateurs And Pruners Of Any Kind; Scythes, Sickles, Hay Knives, Hedge Shears, Timber Wedges And Other Tools Of A Kind Used In” (Agriculture/Horticulture) fall under HSN 82013000.
    • These specific agricultural hand tools are notable for having a Nil GST rate, effective from July 1, 2017.
  • Other Hand Tools (General Purpose):
    • “Hand Tools (Including Glaziers Diamonds), Not Elsewhere Specified Or Included; Blow Lamps; Vices; Clamps And The Like…” are broadly covered under HSN 8205. Specific entries include 82057000 and 82055910.
    • These general hand tools attract an 18% GST rate, effective from July 1, 2017.
  • Interchangeable Tools: These are tools designed to be used with other hand tools or machine tools.
    • “Interchangeable Tools For Hand Tools, Whether Or Not Power- Operated, Or For Machine- Tools (For Example, For Pressing, Stamping, Punching, Tapping, Threading, Drilling, Boring, Broaching, Milling, Turning Or Screw Driving), Including Dies For Drawing Or” are covered under HSN 8207.
    • Specific sub-codes exist, such as “Tools For Boring Or Broaching” (820760) or “Other” (82074090).
    • These interchangeable tools generally attract an 18% GST rate, effective from July 1, 2017.
  • Tool Parts (Cermets):
    • “Plates, Sticks, Tips And The Like For Tools, Unmounted, Of Cermets – Plates, Sticks, Tips And The Like For Tools, Unmounted, Of Cermets : Tungsten Carbide Tips” fall under HSN 82090010.
    • These parts attract an 18% GST rate, effective from July 1, 2017.
• HSN Chapter 84: Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof This chapter covers powered tools and heavy machinery, often referred to as “machine tools.”
  • Tools for Working in the Hand (Power-Operated Hand Tools):
    • “Tools For Working In The Hand, Pneumatic, Hydraulic Or With Self-Contained Electric Or Non-Electric Motor – Parts: Of Pneumatic Tools” are classified under HSN 84679200. This covers parts of power hand tools.
    • These parts attract an 18% GST rate, effective from July 1, 2017.
  • Machine Tools (for Metal, Wood, etc.): This is a vast category covering industrial machinery that performs various operations using tools.
    • For Metal Working:
      • “Machine-Tools For Deburring, Sharpening, Grinding, Honing, Lapping, Polishing Or Otherwise Finishing Metal, Or Cermets By Means Of Grinding Stones, Abrasives Or Polishing Products…” fall under HSN 8460 (e.g., 84602930, 84604019).
      • “Lathes (Including Turning Centres) For Removing Metal – Other Lathes: Multi-Tool And Production Lathes” are under HSN 84589935.
      • “Machine-Tools (Including Way-Type Unit Head Machines) For Drilling, Boring, Milling, Threading Or Tapping By Removing Metal…” are under HSN 8459 (e.g., 84592990).
      • “Machine-Tools (Including Presses) For Working Metal By Forging, Hammering Or Die-Stamping; Machine-Tools… For Working Metal By Bending, Folding, Straightening, Flattening, Shearing, Punching Or Notching…” are under HSN 8462 (e.g., 84629913, 84621011, 84629970).
      • “Machine-Tools For Planing, Shaping, Slotting, Broaching, Gear Cutting, Gear Grinding…” are under HSN 8461 (e.g., 84614022).
    • For Wood, Cork, Bone, Hard Plastics, etc.:
      • “Machine Tools (Including Machines For Nailing, Stapling, Glueing Or Otherwise Assembling) For Working Wood, Cork, Bone, Hard Rubber, Hard Plastics Or Similar Hard Materials – Other : Grinding, Sanding Or Polishing Machines” are under HSN 84659300.
    • Almost all these machine tools within Chapter 84 attract an 18% GST rate, effective from July 1, 2017.
  • Parts and Accessories for Machine Tools (Tool Holders):
    • “Parts And Accessories Suitable For Use Solely Or Principally With The Machines Of Headings 8456 To 8465, Including Work Or Tool Holders, Self-Opening Dieheads, Dividing Heads And Other Special Attachments For Machine-Tools; Tool Holders For Any Type Of To” are classified under HSN 8466 (e.g., 84663010, 84663090).
    • These parts and accessories also have an 18% GST rate, effective from July 1, 2017.
• HSN Chapter 44: Wood and articles of wood; wood charcoal This chapter can cover raw materials used to make tool components.
  • Wooden Tool Handles:
    • “Wooden Sticks, Roughly Trimmed But Not Turned, Bent Or Otherwise Worked, Suitable For The Manufacture Of Walking Sticks, Umbrellas, Tool Handles Or The Like…” are classified under HSN 44042020.
    • These specific wooden sticks for tool handles attract a 12% GST rate, effective from July 1, 2017.

Why Accurate HSN Codes for Tools are Essential

• Ensuring GST Compliance: Correct HSN application is fundamental for businesses to accurately calculate, collect, and remit GST, thereby avoiding discrepancies and potential penalties.
• Facilitating Trade: The globally standardized HSN codes simplify both domestic and international trade, making it easier to classify and transport tools.
• Streamlining Business Operations: Precise HSN classification significantly aids in efficient inventory management, accurate invoicing, and simpler tax filing procedures for businesses dealing with tools.