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August 30, 2025

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HSN Code 8306 GST Rate Explained: Bells, Gongs & Metal Goods (2026 Guide)

HSN Code 8306 covers metal decorative items like bells, gongs, statues, trophies, and frames. The GST rate for all these products in India is 12%, with no additional cess. Export transactions are zero-rated, and businesses can claim Input Tax Credit (ITC).

What is HSN Code 8306?

HSN Code 8306 is used under the GST system to classify metal goods such as bells, gongs, statues, trophies, photo frames, and decorative items made from base metals.

This classification helps businesses:

1. Apply correct GST rates

2. Maintain compliance

3. Simplify invoicing and reporting.

You Can Also Read: Comprehensive guide to HSN Codes and GST Rates for wooden frames, paintings, photographs and mirrors

GST Rate for HSN Code 8306

All products under HSN Code 8306 attract a uniform GST rate of 12%.

Important Update

Earlier, these goods were taxed at 18%, but the GST Council reduced the rate to 12% on 22nd September 2017.

Product-wise GST Breakdown

Product Category	GST Rate
Bells & Gongs	12%
Metal Statues	12%
Trophies	12%
Decorative Ornaments	12%
Photo Frames & Mirrors	12%

Key GST Points

GST Rate: 12%

No additional cess

Export = Zero-rated

ITC available on inputs

Exemptions & Special Cases

No General Exemptions

Most items under HSN 8306 are taxable at 12%.

Religious Use

Temple bells or religious items may qualify for exemptions in some states depending on usage and policies.

Handicrafts

Handmade items may receive benefits under handicraft classification in specific cases.

GST on Exports

Exports under HSN 8306 are zero-rated, meaning:

1. No GST is charged on exports

2. Businesses can claim GST refunds

Input Tax Credit (ITC)

Businesses can claim ITC on:

1. Raw materials

2. Manufacturing costs

3. Packaging expenses

This reduces the overall tax burden.

GST for Small Businesses

1. Businesses with turnover below ₹40 lakh may not require GST registration

2. Composition Scheme may apply for eligible businesses

Compliance & GST Filing

Invoice Requirements

Invoices must include:

1. HSN Code 8306

2. Product description

3. GST rate (12%)

4. Tax amount

You Can Also Read: Import and Export under GST

Returns Filing

1. GSTR-1 (Sales)

2. GSTR-3B (Summary)

3. GSTR-9 (Annual return for eligible businesses)

E-Way Bill

Required for goods movement above ₹50,000.

Impact on Businesses

Positive Impact

Lower GST reduced pricing pressure

Improved competitiveness

Easier tax compliance

Impact on Consumers

1. Lower product prices

2. Transparent billing

3. Better tax visibility

Why GST Classification is Important

Correct HSN classification ensures:

1. Accurate tax filing

2. Avoidance of penalties

3. Smooth audits

4. Better pricing strategy

Common Mistakes to Avoid

1. Using incorrect HSN code

2. Not claiming ITC

3. Ignoring invoice requirements

4. Misclassifying handicraft goods

Conclusion

Understanding GST rates for HSN Code 8306 is essential for businesses dealing in metal decorative products. With a standard GST rate of 12%, clear classification rules, and ITC benefits, businesses can maintain compliance and optimize pricing effectively.

Proper knowledge of GST rules ensures smooth operations, accurate tax filing, and better financial planning.