Machine Tools - GST Rates HSN Code 8456

Machine tools are essential tools for manufacturing and engineering units. These tools are used in various industries such as aerospace, automobile, and defense for shaping and cutting metal parts. The importance of machine tools cannot be overstated, and hence, it is important for business owners to understand the GST rates and HSN code for machine tools.

In this article, we will provide you with all the information you need to know about GST rates and HSN code for machine tools.

HSN code for machine tools:

The HSN code for machine tools is 8456. This code is applicable to all kinds of machine tools, including lathes, milling machines, drilling machines, shaping machines, and grinding machines. The HSN code is used to identify the product for taxation purposes.

GST rates for machine tools:

The GST rate for machine tools is 18%. This rate is applicable to all the machine tools falling under HSN code 8456. Therefore, if you are a business owner dealing in machine tools, you need to charge 18% GST on all your products.

However, there are some exceptions to this rate. If the machine tool is used for the manufacture of handicraft goods, it is taxed at a rate of 12%. Similarly, machine tools used for the manufacture of agricultural implements and parts are taxed at a rate of 5%.

It is important to note that GST rates for machine tools are subject to change based on the government's policies. Therefore, it is advised to keep yourself updated with the latest GST rates for machine tools.

Impact of GST on the machine tools industry:

The implementation of GST has had a significant impact on the machine tools industry. The industry has been affected in both positive and negative ways. On the positive side, GST has simplified the taxation process and reduced the paperwork involved. This has made it easier for businesses to comply with the tax rules and regulations.

However, on the negative side, GST has led to an increase in the cost of machine tools. This is because the GST rate of 18% is higher than the previous tax rate of 15%. Additionally, the implementation of GST has led to a decrease in demand for machine tools, which has affected the overall growth of the industry.

Conclusion:

In conclusion, it is crucial for business owners dealing in machine tools to understand the GST rates and HSN code for machine tools. The HSN code for machine tools is 8456, and the GST rate is 18%. However, there are exceptions to this rate based on the use of the machine tool. GST has had a significant impact on the machine tools industry, and it is important for businesses to stay updated with the latest GST policies and regulations.