GST Rates and HSN Code for Parts Suitable For Use Solely Or Principally

As a small or medium business owner, it's essential to understand the GST rates and HSN codes for parts suitable for use solely or principally. In this article, we'll dive into the details of GST rates and HSN codes for parts suitable for use solely or principally under HSN code 8538.

What are Parts Suitable for Use Solely or Principally?

Parts suitable for use solely or principally are those components that are essential for a specific machine or device to function correctly. These parts are designed and manufactured to ensure that the device or machine operates smoothly and efficiently.

GST Rates for Parts Suitable for Use Solely or Principally

Under GST, parts suitable for use solely or principally are classified under HSN code 8538. GST rates for parts suitable for use solely or principally fall under the 18% tax bracket.

However, there are a few exceptions to this rule. Parts suitable for use solely or principally in the manufacture of electrical transformers, static converters, and other similar devices are classified under the 5% tax bracket.

HSN Codes for Parts Suitable for Use Solely or Principally

HSN code 8538 is designated for parts suitable for use solely or principally in the manufacture of electrical machinery or equipment. The code covers various components such as:

1. Connectors

2. Insulators

3. Coils

4. Transformers

5. Regulators

6. Inductors

7. Other similar parts

However, it's essential to note that the HSN code for a specific part may vary based on its use and application.

Conclusion

Understanding the GST rates and HSN codes for parts suitable for use solely or principally is crucial for small and medium business owners who deal in electrical machinery or equipment. By knowing the correct HSN code and GST rates for these parts, you can ensure that you comply with all GST regulations and avoid unnecessary penalties.