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Published on:

January 30, 2025

Viraaj Vashishth

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Knife HSN Code and GST Rate - 8208

Manufacturers, sellers, and purchasers need to know how the imposition of tax on knives works as well the classification of knives within the HSN Classification System because it is important for them. Knife HSN Code 8208 which is also known as knives, blades for cutting and other such tools is used to classify specific goods that are liable for taxation under the GST regime in India.

What is HSN Code 8208?

The range of tools used in industrial and other mechanical applications is quite wide, and so is the classification. HSN Code 8208 describes wide in “Knives and Cutting Blades, for Machines or Mechanical Appliances” – this classification contains all cutting tools. Knives for food-products, knives for equipment, cutting blades for the paper industry, and blades for textile, woodworking, and metalworking machinery are all included in this wide scope. This makes it easier to identify and raise taxes on specific products in the country.

GST Rates for Knives under HSN Code 8208

Products identified under HSN Code 8208 will, under the new indirect taxation system, be taxed, depending on the application of the product. Some products under this code will attract an 18 percent GST tax rate. Circular blades may be used for maneuvering cutting and plating knives, blades are used for equipment in the food industry, and tools used in some places require the same universal 18 percent tax.

Here is an overview of the GST rates for knives under HSN Code 8208:

HSN Code Description Rate (%) CESS (%) Effective Date Rate Revision 8208 Knives And Cutting Blades, For Machines Or For Mechanical Appliances 18 0 01/07/2017 18% 82081000 For Metal-Working 18 0 01/07/2017 18% 82082000 For Wood-Working 18 0 01/07/2017 18% 82083000 Knives And Cutting Blades, For Machines Or For Mechanical Appliances - For Kitchen Appliances Or For Machines Used By The Food Industry 18 0 01/07/2017 18% 82084000 For Agricultural, Horticultural Or Forestry Machines 18 0 01/07/2017 18% 820890 Other 18 0 01/07/2017 18% 82089010 Knives And Cutting Blades For Paper Cutting Machines 18 0 01/07/2017 18% 82089020 Other : Bell Skiving Knives 18 0 01/07/2017 18% 82089030 Other : Band Knives For Splitting Machine 18 0 01/07/2017 18% 82089040 Other : Cutting And Clicking Dies 18 0 01/07/2017 18% 82089090 Other 18 0 01/07/2017 18%

The uniform tax rate simplifies compliance and avoids confusion in the classification of these products.

You Can Also Read: Tableware Kitchenware Plastics – GST Rates & 3924 HSN Code

Importance of HSN Code 8208 in Taxation

It is crucial for traders to understand the correct classification under knife HSN Code 8208 to minimize liquidated damages, enable easy adjustment of input tax credit, and ensure proper invoicing in business transactions. Incorrect classification leads to incurring penalties and delayed claiming of GST credits, which interferes with business expenditure planning. Additionally, proper classification cultivates confidence in the transactions and enhances fairness, which is essential in the modern era of trade and tax systems.

Industries Using Knives and Cutting Blade HSN Code

Cutting And Façonnage tools fall under HSN Code 8208 and are used in varied industries. In the food processing industry, knives and blades are used for scheduling purposes such as vegetable, meat, and food item preparations. The printing and paper industry also makes use of cutting implements to the same effect as trimming, shaping, or slicing paper and else. The textile industry also uses blades for cutting fabric or shaping them. Other applications of knives and blades that are used in metal and woodworking industries include specialized types used for shaping materials. This very broad application of these tools under HSN Code 8208 explains why they bear the classification.

Regulation of Knives for GST compliance under code 8208

The following action steps must be done to fully comply with GST regulations. If a business has a turnover of over Rs 5 crores, they must correctly mention HSN Code 8208 on all invoices, while smaller businesses must use descriptive invoices. Similarly, when filing the GST returns via GSTR-1 and GSTR-3B, appropriate measures must be taken to ensure that these returns correspond to the HSN codes. Furthermore, undertakings that import or export knives will also need to apply the correct knife HSN code so that proper GST invoicing is done and international trade regulations are satisfied.

To enhance compliance, it may also be advisable for businesses to engage tax professionals in an effort to avoid misclassification. The use of trick automated billing software may also help solve the problem since HSN codes will be built into the software. Those involved in business are also encouraged to use the notifications and updates on the GST portal to remain abreast of any changes in rates or rules. Compliance objectives can therefore be achieved in an efficient manner.

How to Determine the Applicable GST rate for knives

Businesses have the obligation of determining the correct GST rate that applies to a specific knife or blade. It first starts with understanding the purpose of the product. For example, is it for food processing, industrial cutting or other uses? Checking the product specifications to ensure they conform with the description of HSN Code 8208 is the next step.

You Can Also Read: Hand Working Tools 8467 HSN Code and GST Rate

Conclusion

If a person wishes to trade in knives or blades, it is important for them to understand the appropriate HSN code for a knife (8208) and the tax slab for GST applicable to that product. This helps ensure that a company remains compliant, plans taxes effectively, and stays out of trouble. The taxation process is easy with an 18% GST irrespective of the compliance burden that comes with it.

Businesses are advised to use software and professional services to make compliance easier and more efficient in their trading activities. As a result of focus on accurate classification of their products and compliance to regulations, smooth business operations under GST are achieved while enhancing the integrity of the tax system.

FAQs

1. Is there coverage for all Industrial blades under the 8208 HSN Code GST rate?

The 8208 HSN Code includes most Industrial knives and cuts blades of machines, but does not include products that are for non-industrial purposes.

2. Is there a single GST slab for all products under knife category HSN Code?

Yes, Every one of the products is covered in the HSN Code 8208 which includes knives and cutting blades as well, and all are charged a tax of eighteen percent.

3. What can the businesses do to comply with the HSN Code 8208?

Classification of knives and blades should be done appropriately under the 8208 HSN Code and the GST tax of 18 percent should be applied.

4. What industries make use of the knives that are under the 8208 HSN Code GST rate?

The food processing, printing, textile, woodworking, and metalworking industries make frequent use of products that fall in the category of 8208 HSN code.

5. What is the significance of complying with the classification correctly under the knife HSN Code?

Correct classification will ensure compliance for GST, no penalty and will allow easy claiming of input tax credits.

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