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Published on:

November 15, 2024

Viraaj Vashishth

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Paintings and drawings HSN Code & GST Rate - 9701

The HSN (Harmonized System of Nomenclature) code associated with art deals with paintings and drawings which is the HSN code 9701 within the Goods and Services Tax (GST) system in India. This code defines the taxation for works of art and assigns a tariff in order to maintain ease of pricing and legal requirements. This article focuses on the painting HSN code and GST rate applicable for paintings and drawings and seeks to address all the requirements that artists, collectors and businesses may have in regards to tax on works of art and the like.

What is HSN Code 9701 for Paintings and Drawings?

Paintings, drawings, and pastels are included in HSN Code 9701 which is meant for “paintings, drawings, and pastels” along with the original pieces of art by artists. This code is specifically for genuine works of art which distinguishes them from copies or print arts.

Items Covered Under HSN Code 9701

The 9701 HSN code comprises mainly:

1. Original paintings and drawings.

2. Pastels and sketches that are drawn by hand.

3. Other original works of art (but not mechanically produced).

Distinction Between Paintings, Drawings, and Other Artistic Works

All original art including HSN 9701 prints and HSN 9701 reproductions belong to different HSN classifications. This classification is very important as mistakes in classification have the effect of payment of GST and compliance issues.

Overview of the applicable GST Rates for Paintings and Drawings

12% is the basic GST for original paintings and drawings according to HSN 9701. However, other types of artworks may attract different rates based on their classification. Over the last few years, GST rates of different items including paintings have been revised. This section would clarify any rate revisions so as to meet up with current needs.

Comparison of GST Rates for Different Other Art Categories

For instance, knowing the GST rates for prints, taxes on paintings etc. would prevent persons from making wrong assessments in relation to tax. The tax rate for original artworks is under HSN 9701 and other forms such as HSN 9701 replicas attract different GST rates.

Applicability of GST on Paintings and Drawings in Various Scenarios

HSN Code	Description	Rate (%)	Effective Date	Rate Revision
9701	Paintings, Drawings And Pastels, Executed Entirely By Hand, Other Than Drawings Of Heading 4906 And Other Than Hand-Painted Or Hand-Decorated Manufactured Articles; Collages And Similar Decorative Plaques	12	01/07/2017	12%
970110	Paintings, Drawings And Pastels :	12	01/07/2017	12%
97011010	Madhubani Paintings (On Textiles)	12	01/07/2017	12%
97011020	Kalamkari Paintings (On Textiles)	12	01/07/2017	12%
97011030	Rajasthani Paintings (On Textiles)	12	01/07/2017	12%
97011090	Other	12	01/07/2017	12%
97019091	Domestic Articles Of Wood (Hand Decorated )	12	01/07/2017	12%
97019092	Restaurant Decoration Of Plastics	12	01/07/2017	12%

Goods and service tax on Art: Individual Artists versus Dealers

The GST on paintings is diverse depending on whether the artist himself sells the painting or if the painting was sold through an art dealer. In most cases artworks sold by the artist to the owner are levied a 12% GST, while the sale of artworks through galleries or dealers contains additional GST elements.

GST on Paintings and Drawings that have been imported

12% GST is charged on all paintings and drawings imported into the country together with other importation customs duties that may also be imposed. This part discusses some of these subtleties for the benefit of buyers and collectors.

GST Applicability for Art Applied in Corporate Spaces

Corporation acquiring paintings for office wall or brand needs has an obligation of compliance towards GST under applicable law, in this case, one usually falls under 12% in respect to HSN 9701.

You can also read: List of Best Paint Companies in India

How to ascertain which HSN code would accurately depict one’s Painting Work

1. Differences between Painting Work HSN Code versus Art HSN Code: Depending on the scope of the job, the HSN Code for paintings done on murals, which are usually commissioned, could be different from HSN 9701. This section tries to explain those differences.

2. Services of Painting and codes of their HSN: Mural and plastering services for instance have different HSN Codes and enjoy registration for 18% GST rather than the 12% for original paintings under HSN 9701.

Calculation of GST for Paintings and Drawings (with Examples)

Type of Transaction	Amount (INR)	GST Rate	Total GST (INR)	Total (INR)
Original Painting	50,000	12%	6,000	56,000
Imported Original Art	50,000	12% + Customs Duty	Varies	Varies

For an Original painting worth INR 50,000, the 12% pricing of GST will be computed as follows: Total GST = 50,000 x 0.12 = 6,000. The net price therefore would stand at 56 thousand rupees.

Exemptions and Special Provisions for Paintings and Drawings Under GST

There are some exemptions on artworks that are donations from the artist, those that are used in non-business settings, or those that are donated to charity organizations.

1. Special Cases: Gifts, Donations, and Non-Commercial Use In all other cases where the work of art was given as a gift, or donated, or not intended for sale, the GST may not be levied. Nevertheless, proper documentation should be obtained and maintained in order to ensure compliance.

2. Compliance and Documentation for Art Transactions: Under GST Invoicing Requirements for Paintings and Drawings and drafting similar contracts requires proper invoices which record GST amounts and HSN Code 9701 for business transparency and record keeping. Necessary GST Filing for Art Dealers and Artists Artists and galleries are required to file returns on taxable activities relating to art and other related issues regardless of the amount involved if a taxpayer’s turnover exceeds the stipulated GST threshold.

Conclusion

The navigation of the GST implications on paintings and drawings specified under HSN Code 9701 can only be achieved if there is enough grasp of classification, compliance procedures and rates. HSN 9701 has to do with the original paintings, sculptures and other similar items and, therefore, attracts a 12 % GST that is invoiced directly on paintings, drawings and pastels by artists. This category clearly sets apart original art works from other types of arts, which may be reproductions or pieces used for decoration and may have other HS codes and thus varying GST.

It is important for artists, art dealers and art businesses to understand and apply correctly the HSN in order to adhere to the GST outlines set by the Indian government. Safe and secure invoicing, proper documentation and timely GST filings are some of the important areas of concern with respect to direct selling by the artists as well as selling through galleries and dealers’ transactions. Cases such as imports, donations and resale have extra issues to address like customs duty and tax relief which is specific to the objectives and people or entities in question.

The systematic method towards painting HSN code and GST rate suits the cause of clarity and helps to maintain adequate and balanced pricing as well as remedying misclassifications which would have otherwise resulted in undue taxation or fines. By staying updated on the latest GST policies and provisions for artwork, individuals and businesses in the art industry can focus on promoting creativity and cultural expression, knowing they are operating within the bounds of current tax laws.

FAQs

1. What is the GST rate on the painting work under HSN code 9701?

In HSN code 9701, the upset rate for original paintings is set at twelve percent (12%).

2. Are all the works of art covered by HSN 9701?

No, HSN 9701 includes only such works as original painting, paintings and pastels.

3. Is there a different gst for paintings which are not made in India?

Yes, there are imported paintings which will attract customs duty apart from GST.

4. Are artists required to be GST registered in order to sell paintings when they are not required to?

Yes, if they exceed the GST threshold for registration.

5. Which HSN code is applicable on murals or commercial art?

Commercial artworks and murals hitherto have different HSN codes and normally attract 18% GST rate.

6. What is the GST amount that is charged when a painting goes for 50000 INR?

Only twelve percent (12%) of five hundred thousand rupees which is fifty six thousand can be charged on the sale of the painting.

7. Is it possible for a buyer to claim input tax credit on GST on account of acquisition of paintings?

Yes, if the artwork is utilized in carrying out business.

8. Are there any gst charges imposed on art pieces that are given as donations?

There are no charges, the art pieces may be donated without charge where the donation is made to a charitable institution.

9. Is there any GST on artwork which is resold?

GST may depend on the fact if goods are being sold and the person/entity who is selling the goods.

10. Where do art prints stand in relation to original paintings in the sense of GST classification?

Original works of art are specified under the HSN 9701 interpretation and the appropriate excise duty at the rate of 12% is charged. Other graphics used for printing have different codes and rates.

Updated on:

November 17, 2024