HSN, the Harmonized System of Nomenclature, is a code that systematically classifies goods in national and international markets. A 6 – digit code classifies various products in groups. The B2B and B2C tax invoices must mention the HSN code. Introduced by the World Customs Organization (WCO), the HSN code applies to customs and GST. It makes filing returns easier as the need to upload details about the goods is eliminated.
Did you know? HSN codes are accepted worldwide.
Also read: GSTR-8: Return, Filing, Format, Eligibility & Rules
How does HSN function in India?
After the introduction of GST in India, HSN has been used under a 3-tiered system. The system is defined below:
- HSN codes have 21 sections. The sections contain 99 chapters, along with 1,244 headings and 5,224 sub-headings.
- Each section number is further divided into chapters. These chapters include headings and sub-headings.
- The sections and chapters describe the product
- The headings and the sub-headings mention essential details about the commodity
GST Rates and HSN code of the nut bolt.
The table below shows the bolt nut HSN code and GST rates.
|
HSN Code |
Description |
Rate (%) |
CESS (%) |
Effective Date |
Rate Revision |
|
7318 |
Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles |
18 % |
0 |
01/ 07/ 2017 |
18 per cent |
|
731811 |
Coach screws |
18 % |
0 |
01/ 07/ 2017 |
18 per cent |
|
73181110 |
Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles – coach screws: machine screws |
18 % |
0 |
01/ 07/ 2017 |
18 per cent |
|
73181190 |
Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles – coach screws: Other |
18 % |
0 |
01/ 07/ 2017 |
18 per cent |
|
73181200 |
Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles – other wood screws |
18 % |
0 |
01/ 07/ 2017 |
18 percent |
|
73181300 |
Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles – screw hooks and screw rings |
18 % |
0 |
01/ 07/ 2017 |
18 percent |
|
73181400 |
Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles – self-tapping screws |
18 % |
0 |
01/ 07/ 2017 |
18 percent |
|
73181500 |
Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles – other screws and bolts, whether or not with their nuts or washers |
18 % |
0 |
01/ 07/ 2017 |
18 percent |
|
73181600 |
Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles – nuts |
18 % |
0 |
01/ 07/ 2017 |
18 percent |
|
73181900 |
Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles – other |
18 % |
0 |
01/ 07/ 2017 |
18 percent |
|
73182100 |
Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles – spring washers and other lock washers |
18 % |
0 |
01/ 07/ 2017 |
18 percent |
|
73182200 |
Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles – other washers |
18 % |
0 |
01/ 07/ 2017 |
18 percent |
|
73182300 |
Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles – rivets |
18 % |
0 |
01/ 07/ 2017 |
18 percent |
|
73182400 |
Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles – cotters and cotter-pins |
18 % |
0 |
01/ 07/ 2017 |
18 percent |
|
731829 |
Other |
18 % |
0 |
01/ 07/ 2017 |
18 percent |
|
73182910 |
Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles – other: circlips |
18 % |
0 |
01/ 07/ 2017 |
18 percent |
|
73182990 |
Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles – other: other |
18 % |
0 |
01/ 07/ 2017 |
18 percent |
Why is HSN important under GST?
The main aim of the HSN code is to make the GST process systematic and globally accepted. This code eliminates the need to upload a detailed description of a commodity. Thus, saving time. It also makes filing hassle-free and easier as GST returns are automated. A service provider needs to mention an HSN-wise summary of the sales in the GSTR – 1 if the turnover of the business increases ₹1. 5 crores.
Who needs to use the HSN code?
The HSN codes should be used by the following:
- Businesses with a turnover of ₹1.5 crores or less need not use the HSN
- Businesses with a turnover of more than ₹1.5 crores, but less than ₹5 crores should use the 2- digit HSN codes
- Businesses having a turnover of more than ₹5 crores must use 4- digit HSN codes
- Businesses dealing with exports and imports need to use an 8- digit HSN code
Classification of goods under HSN
The Central excise and customs department has been using the HSN system in India since 1986. In India, two more digits were added to the 6-digit code for better differentiation of the commodities. The HSN code is classified as under
·The first two digits represent the chapter number of a commodity
·The next 2 digits refer to the heading number
·The last 2 digits represent the product code.
Benefits of the HSN Code
The benefits of the HSN code are mentioned below:
- It is used in filing returns
- It makes it easier to have international business dealings
- It offers a uniform global taxation system
- The code provides a uniform system of classifying goods for Customs and Central Excise globally
Also read: Impact of GST Rate on Steel and Iron in India
Conclusion
We hope this article has been of help in providing information about the Nut Bolt HSN Code. The use of HSN codes is mainly for traders and dealers. They must adopt the 2-digit, 4-digit, or 8-digit codes depending on the category (annual business turnover) to which they belong. The HSN code helps save time and money when filing the GST.
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