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Published on:
February 25, 2023
By
Prerna

Auxiliary Plant - GST Rates & HSN Code 8404

As an Indian Small and Medium Business owner or startup founder, understanding the GST rates and HSN codes for auxiliary plants is essential for conducting business in a compliant and efficient manner. In this article, we'll dive into the details of auxiliary plants, their GST rates, and HSN codes.

What is an Auxiliary Plant?

An auxiliary plant is any machinery or equipment that is used for manufacturing or production processes, such as pumps, compressors, boilers, or generators. These plants provide a necessary support system to the main production equipment and are crucial for efficient operations.

GST Rates for Auxiliary Plant

As per the GST council's decision, the GST rate for auxiliary plants falls under the 18% tax bracket.

HSN Code for Auxiliary Plant

The HSN code for auxiliary plant is 8404. This code is used for the import and export of such plants and is required for the filing of GST returns. The HSN code for auxiliary plant is further classified into two categories - 8404.10 and 8404.90.

8404.10 - Auxiliary Plants for Use with Boilers

This category includes auxiliary plants that are used alongside boilers for efficient operations. These plants include feedwater heaters, economizers, superheaters, and steam separators.

8404.90 - Other Auxiliary Plants

This category includes all other auxiliary plants that are used for manufacturing processes, such as pumps, compressors, and generators.

Conclusion

Understanding the GST rates and HSN codes for auxiliary plants is essential for conducting business in India. Business owners and startup founders should ensure that they are compliant with the correct GST rates and HSN codes to avoid penalties and optimize operations.

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