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Published on:
February 25, 2023
By
Harshini

Screws Bolts Nuts - GST Rates  HSN Code 7318

Screws, bolts, and nuts are essential components used in various industries, including construction, engineering, and manufacturing. When it comes to taxation, it is essential to understand the GST rates and HSN code for screws, bolts, and nuts.

The Harmonized System of Nomenclature (HSN) code is a six-digit code used to classify goods under the GST regime. The HSN code for screws, bolts, and nuts is 7318.

The GST rate for screws, bolts, and nuts varies depending on their type, size, and usage. Here is a detailed breakdown of GST rates and HSN code for screws, bolts, and nuts:

HSN Code 7318 - Screws, Bolts, Nuts, Rivets, and Washers

HSN code 7318 covers screws, bolts, nuts, rivets, and washers made of iron, steel, or other materials. The code includes:

1. Machine screws, wood screws, and similar screws of iron or steel

2. Bolts, screws, and nuts used for fixing railway track constructions

3. Screws, bolts, and nuts used in motor vehicles, aircraft, and other vehicles

4. Rivets, cotters, cotter pins, washers, and similar articles

GST Rates for Screws, Bolts, and Nuts

The GST rates for screws, bolts, and nuts are as follows:

1. 18% GST: This rate is applicable to screws, bolts, and nuts used for construction, engineering, and manufacturing purposes, including those made of iron, stainless steel, or other metals.

2. 12% GST: This rate is applicable to screws, bolts, and nuts used in the automotive industry, including those made of iron, stainless steel, or other metals.

Exemptions and Special Cases

There are some exemptions and special cases when it comes to GST rates for screws, bolts, and nuts. These include:

1. Nil GST: Screws, bolts, and nuts made of brass, copper, or aluminum are exempt from GST.

2. 5% GST: Screws, bolts, and nuts used in the manufacture of agricultural machinery are taxed at a reduced rate of 5%.

3. 28% GST: Screws, bolts, and nuts made of precious metals such as gold, silver, or platinum are taxed at the highest rate of 28%.

Conclusion

Understanding the HSN code and GST rates for screws, bolts, and nuts is essential for small and medium business owners and startup founders in India. Proper classification and taxation can help businesses avoid penalties and ensure compliance with the GST regime.

It is essential to consult with a tax expert or seek guidance from the Goods and Services Tax Network (GSTN) in case of any doubts or clarifications regarding GST rates and HSN code for screws, bolts, and nuts.

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Updated on:
March 16, 2024