‍GST rates and HSN code 9001 for Optical Fibres

Optical fibres are the key drivers of communication systems in this digital world. They are a key component in transmitting broadband, cable TV, and advanced telecommunication networks today because they carry data at high speed with very low loss. With India heading towards a digitally connected way of life, the requirements for fibre optic structures are escalating.

This article is meant to give a brief insight into businesses making, trading, or importing optical fibre products on relevant GST Rates and HSN Codes. In this blog, we will cover everything you need to know about the 9001 HSN code, GST rates and classification of related products including OFC cables, fibre patch cords and media converters.

What is HSN Code 9001?

HSN (Harmonized System of Nomenclature) is a globally accepted system developed by the World Customs Organization (WCO) to systematically classify goods. HSN codes are relevant to goods in India and assist in allocating them under the Goods and Services Tax (GST), thereby facilitating tax administration and ensuring uniformity.

Specifically, the 9001 HSN code includes:

Optical fibres (unmounted)
If not fitted with connectors: Optical fibre bundles and cables
Polarizing sheets and plates
CCTV Lens and Optical Elements: CCTV Lens Optical glass Optical Elements

GST Rates for Optical Fibre Products

The GST Council has specified different GST rates based on the type of optical fibre product. Here’s a quick overview:

Product	HSN Code	GST Rate
Optical fibres (not made up of cables)	9001	18%
Optical fibre cables (for telecommunication)	8544	18%
Fibre optic cables (other applications)	8544	18%
Fiber patch cords	8544	18%
Media converters	8517	18%

Most optical fibre-related products, whether raw or assembled, attract 18% GST.

You might also be interested in learning about GST rates and the 8535 HSN code for Switches and fuses.

Classification of Common Fibre Optic Products

Here are some Optical fibre products and their taxation under the GST regime:

1. Optical Fibres

HSN Code: 9001
GST Rate: 18%
Among these are pure unprocessed optical fibres utilized in the manufacturing of optical cables or the laboratory.

2. Optical Fibre Cables (OFC)

OFC cable HSN code: 8544
GST Rate: 18%
Optical fibres are classified under HSN 8544 when they are bundled and sheathed in a cable form for data transmission. This entails cables deployed in telecom, data centres, and broadband networks.

3. Fibre Patch Cords

HSN code of fibre patch cord: 8544
GST Rate: 18%
Fibre patch cords are short optical cables with connectors on either end that are used to attach a computer to the network. They are important in networking for linking optical devices.

4. Media Converters

HSN code for media converter: 8517
GST Rate: 18%
They act as bridges between different types of media; for instance, they convert the electrical signal to optical and also provide the reverse functionality. They are classified as telecommunication equipment, albeit being components of fibre optic infrastructure.

Fiber Cable HSN Code vs Optical HSN Code: Key Differences

It’s important to understand that while both are related to fibre optics, their classification varies:

Feature	Fiber HSN Code (8544)	Optical HSN Code (9001)
Type of Product	Finished cables (OFC, patch cords)	Raw optical fibres and elements
End Use	Telecommunication, data transmission	Manufacturing, research
Example	Fibre optic internet cable	Optical fibre spool (unprocessed)

Choosing the correct HSN code ensures compliance and avoids unnecessary penalties or tax disputes.

Why Correct HSN Code Usage is Important

Errors related to the wrong HSN code or GST rate:

If you will file GST incorrectly, there are penalties involved.
Late claiming of Input Tax Credit (ITC)
Notices from tax authorities
Issues during GST audits

Fibre optic products should be invoiced with caution.

Common Mistakes to Avoid

Business owners make several mistakes related to fibre hsn code and optical hsn code which we have listed below:

Fibre cables being misclassified as raw fibres (e.g. 9001 rather than 8544)
Incorrect application of the right GST due to wrong HSN codes
Not modifying HSN codes as per the changes in the product (say raw fibre converted into the cable)
Ignoring media converters because they think these are optical codes, not telecom equipment

For HSN codes, always refer to the latest GST notifications with the Product description before Finalization.

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Conclusion

As digital infrastructure becomes more critical in India, there is increasing demand for optical fibre products, including OFC cables, fibre patch cords and media converters. In this sense, it is important to correctly understand and apply the right 9001 HSN code for – optical fibres (and the fibre cable HSN code and the media converter HSN code) for purposes of GST applicability.

Though the majority of optical fibre products are subjected to 18% GST, the right HSN classification also protects businesses from unnecessary penalties and audits, allowing them to focus on operations without worrying about fines. In the ever-evolving fibre optics industry, manufacturers, distributors, and retailers alike must stay updated on GST rates and HSN codes.

FAQs

Q1. What is the GST rate for raw optical fibres and fibre cables?

No. Both attract 18% GST in general, but raw fibres come under HSN 9001 while fibre cables come under HSN 8544.

Q2. What is the classification of fibre patch cords?

They are finished cables and come under HSN 8544 with 18% GST.

Q3. What is the HSN code of a fibre media converter?

Media converters are classified under HSN 8517 (telecommunication machines) and attract an 18% tax.

Q4. What will happen if I mention the incorrect HSN code?

Incorrect classification of goods and services can cause a mismatch of information in the GST returns, rejection of ITC claims, penalties, restrictions, and increased scrutiny from tax authorities.