Tools & dies HSN Code

Understanding the HSN Code for Tools & Dies

In the vast landscape of manufacturing, tools and dies are the unsung heroes, shaping raw materials into finished products with precision and efficiency. For businesses involved in their production, trade, or import in India, understanding the correct Harmonized System of Nomenclature (HSN) codes and their associated Goods and Services Tax (GST) rates is paramount. The classification of tools and dies can span multiple categories, reflecting their diverse applications and varying levels of complexity.

Tools & Dies HSN Classification

The HSN classification for tools and dies primarily falls under two key chapters, depending on their nature and primary function:

Chapter 82: Tools, Implements, Cutlery, Spoons and Forks, of Base Metal; Parts Thereof of Base Metal

This chapter is the most common home for a wide array of tools and dies, particularly those designed to be interchangeable or used with hand tools and machine tools.

• HSN 8207: 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 Extruding Metal, and Rock Drilling or Earth Boring Tools. This broad heading is crucial for many types of dies. It encompasses a vast range of industrial tools designed to be inserted into machines or hand-held power tools. The detailed sub-headings under 8207 further categorize these tools by their specific function:
  • Dies for Drawing or Extruding Metal (HSN 82072000): This is a direct hit for many dies used in metal shaping processes.
  • Tools for Pressing, Stamping, or Punching (HSN 82073000): This covers dies used in various pressing and stamping applications.
  • Tools for Tapping or Threading (HSN 820740): Includes items like thread rolling dies (e.g., HSN 82074090).
  • Tools for Boring or Broaching (HSN 820760): Such as reamers and boring tools (e.g., HSN 82076090).
  • Tools for Milling (HSN 820770): For instance, carbide end mills (e.g., HSN 82077090).
  • Other Interchangeable Tools (HSN 820790): This serves as a residual category for various other specialized interchangeable tools, including those for metalworking (HSN 82079010).
• HSN 8208: Knives And Cutting Blades, For Machines Or For Mechanical Appliances. This heading is relevant for certain types of dies that primarily function as cutting blades:
  • Cutting and Clicking Dies (HSN 82089040): This specific code directly identifies dies used for cutting and clicking operations, commonly found in industries like leather, textile, and packaging.
• HSN 8201: Hand Tools (Agricultural/Forestry/Horticultural). While less common for complex industrial dies, basic hand tools used in agriculture or forestry (e.g., axes, hoes) fall under this chapter and can have a Nil GST rate (HSN 82013000).

Chapter 84: Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; Parts Thereof

This chapter covers the actual “machine-tools” that use the dies, or more complex machinery that integrates a die-stamping or forming function.

• HSN 8462: Machine-Tools (Including Presses) For Working Metal By Forging, Hammering Or Diestamping; Machine-Tools (Including Presses) For Working Metal By Bending, Folding, Straightening, Flattening, Shearing, Punching Or Notching; Presses For Working Metal Or Metal Carbides, Not Specified Above. This broad heading focuses on the machinery itself, which might have dies as an integral part of its function.
  • For example, Forging or Die-Stamping machines would fall under HSN 846210. While the machine is classified here, the individual dies used with it would typically refer back to Chapter 82, particularly HSN 8207.

The GST Rate for Tools & Dies

For most tools and dies, particularly the interchangeable types used in industrial applications, the prevailing GST rate is:

• GST Rate: 18%

This rate has been effective since July 1, 2017. It applies to the wide array of interchangeable tools under HSN 8207, as well as cutting and clicking dies under HSN 82089040, and the machine tools under HSN 8462.

It’s crucial for manufacturers, distributors, and traders to accurately classify their tools and dies to ensure correct GST application, seamless logistics, and compliance with Indian tax regulations. Always consult the detailed HSN tariff and official GST notifications for the most precise classification.