Manufacturing businesses depend heavily on machines and equipment to produce goods efficiently. Lathes are a critical tool in the manufacturing industry that is used to shape and cut materials such as metal, wood, and plastic.
A lathe is a machine tool that rotates a workpiece on its axis to perform various operations, including cutting, drilling, sanding, knurling, and deformation. Lathes are used in various industries, including metalworking, woodworking, and glass-working. The machine operates by rotating the workpiece on its axis while a cutting tool is moving in a linear motion to remove excess material from the workpiece.
Goods and Services Tax (GST) is a comprehensive indirect tax that has replaced multiple taxes in India. The GST is levied on the supply of goods and services at each stage of the production and distribution process until the final consumer is reached.
The GST rate for lathes is 18%. This rate is applicable to all types of lathes, including CNC machines, turret lathes, and center lathes. The GST rate for lathes is consistent across all states in India.
The Harmonized System of Nomenclature (HSN) is an internationally standardized system used to classify goods traded in international trade. The HSN code for lathes is 8458.
HSN code 8458 is assigned to machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter, including lathes, boring and milling machines, and planing and shaping machines.
Using the correct HSN code when filing GST returns is essential for proper compliance with GST regulations. The HSN code for lathes, 8458, should be used when filing GST returns for all types of lathes.
Lathes are critical machines in the manufacturing industry, and their importance cannot be overstated. The GST rate for lathes is 18%, and the HSN code for lathes is 8458. Small and medium business owners and startup founders in India should be aware of these rates and codes to ensure they remain compliant with GST regulations when purchasing, selling, or maintaining lathes.
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