India is likely to become the single largest market for goods and services across the globe. GST(Goods and Services Tax) will bear astounding advantages to the nation as well as the businesses by reducing the number of taxes and bringing about ease in doing businesses. GST registration for Industrial machinery is based on HSN code.
Harmonized System Nomenclature or HSN is the internationally adopted commodity description and coding system devised by the World Customs Organization. With HSN being the universal classification of goods, The Indian Government has advised all industries to do GST registration using HSN code as reference of their service as the machinery used.
Machine Purchase Or Sale and Corresponding GST Rates
The HSN code and GST tariff for nuclear reactors, boilers, machinery and mechanical appliances are based on HSN chapter 84.Handlooms and micro businesses have not been levied GST to provide relief to the common man. Click Out – https://www.financialexpress.com/economy/gst-input-tax-credit-on-capital-goods-how-to-claim-meaning-depreciation-all-you-need-to-know/1822571/
Machinery And Equipment That Attract GST Of 5% and 12%
The following goods attract 5% GST under chapter 84 of HSN.
- Hand pumps and parts thereof
- Solar water heater and system
- Renewable energy devices and their spare parts manufacture-This include Bio-gas plant,solar-power based devices and generating systems, wind mills,waste to energy plants/devices, Ocean waves/tidal waves energy devices/plants.
The following goods attract 12% GST under HSN code chapter 84
- Nuclear fuel elements
- Power driven pumps like centrifugal pumps(horizontal and vertical)primarily designed for handling water, and other pumps like deep tube well turbine pumps, submersible , axial flow and mixed flow vertical pumps
- Bicycle pumps, hand pumps etc.
- Milking and dairy machinery
- Sewing machines
- Composting Machines
Machinery And Equipment That Attract GST of 18% and 28%
The following goods attract 18% GST under HSN code Chapter 84
- Auxiliary plant with boilers , condensers or other vapour power units
- Water gas generators, acetylene gas generators and similar water process gas generators, with or without their purifiers
- Steam turbines and other vapour turbines
- Hydraulic turbines, water wheels, and regulators
- Turbo-jets, turbo propellers and other gas turbines – turbojets
- Other engines and motors (Reaction engines other than turbojets, Hydraulic power engines and motors, Pneumatic power engines and motors, other, parts) [other than wind turbine or engine]
- Mechanical stokers, including their mechanical grates, furnace burners for liquid fuel, for pulverised solid fuel or gas;mechanical ash dischargers and similar appliances.
The following goods attract 28% GST under chapter 84
- Spark-ignition reciprocating or rotary internal combustion piston engine,Compression-ignition internal combustion piston engines (diesel or semi-diesel engines)
- Air or vacuum pumps, ventilating or recycling hoods incorporating a fan, air or other gas compressors and fans; whether or not fitted with filters
- Air-conditioning machines, motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated
- Fire extinguishers
- Weighing machinery
- Other lifting, handling, loading or unloading machinery
- Printer, photo copying, fax machines, ink cartridges
- Household or laundry type washing machines, including machines which both wash and dry.