Slag wool and rock wool are two of the most commonly used insulation materials in India. They are widely used in construction, industrial, and commercial applications due to their excellent thermal insulation properties, fire resistance, and soundproofing capabilities.
Slag wool is made from molten blast furnace slag and is commonly used for insulating walls, roofs, pipes, and industrial equipment. On the other hand, rock wool is made from basalt rock and is used for insulating high-temperature applications such as boilers, turbines, and furnaces.
Slag wool and rock wool are classified under HSN code 6806 and attract a GST rate of 18%. This rate includes a 9% CGST and a 9% SGST. The GST rate for insulation materials was increased from 12% to 18% in 2017 as part of the government's efforts to streamline the GST tax structure.
The HSN code for slag wool and rock wool is 6806. This code is used to classify all types of rock and slag wool products, including boards, sheets, and mats. Companies that manufacture, import, or sell slag wool and rock wool products must use this code when filing their GST returns.
To calculate GST on slag wool and rock wool, you need to multiply the taxable value of the product by the GST rate of 18%. The taxable value is the price of the product excluding GST.
For example, if the price of a roll of rock wool insulation is Rs 1,000, the GST applicable on it would be Rs 180 (18% of Rs 1,000). Therefore, the total price of the product including GST would be Rs 1,180.
Slag wool and rock wool are essential insulation materials used in construction, industrial, and commercial applications in India. They offer excellent thermal insulation and soundproofing properties and are highly resistant to fire and heat. The GST rate for these products is 18%, and companies must use the HSN code 6806 when filing their GST returns. Understanding these rates and codes is critical for small and medium-sized business owners and startup founders to ensure compliance with the GST taxation system.
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