Understanding HSN Code 8415 and GST Rates: All You Need to Know

Introduction:

HSN code stands for Harmonized System of Nomenclature, which is a multi-purpose international product nomenclature developed by the World Customs Organization (WCO). HSN codes are used to classify goods for taxation purposes, including under the Goods and Services Tax (GST) regime in India. In this blog, we will discuss the HSN code 8415 and its corresponding GST rate.

HSN Code 8415:

The HSN code 8415 pertains to air conditioning machines and machines for household or laundry use, including washing machines and dryers. The code includes the following products:

• Window or wall air conditioning machines
• Split-system air conditioning machines
• Central air conditioning machines
• Household or laundry washing machines
• Household or laundry drying machines

GST Rate for HSN Code 8415:

The GST rate for products falling under HSN code 8415 is 28%. This means that any goods falling under this code will attract a GST rate of 28%.

Exceptions to the GST Rate:

There are a few exceptions to the 28% GST rate for HSN code 8415. These include:

• Solar-powered air conditioning machines: Solar-powered air conditioning machines attract a GST rate of 5% instead of the usual 28%.
• Parts of air conditioning machines: Parts of air conditioning machines such as compressors, condensers, and evaporators attract a GST rate of 18% instead of the usual 28%.
• Household or laundry washing machines of a capacity not exceeding 10 kg: Household or laundry washing machines of a capacity not exceeding 10 kg attract a GST rate of 18% instead of the usual 28%.

Importance of HSN Code:

The HSN code system is an important classification system used globally to identify and classify products for taxation purposes. The HSN code system helps in the smooth flow of trade and commerce by providing a standardized classification system that is recognized across different countries. In India, the HSN code system has been adopted under the GST regime to levy taxes on goods and services. The HSN code helps in identifying the correct GST rate for products, reducing the risk of tax evasion and ensuring a uniform tax structure.

Detailed Description of HSN Code 8415:

The HSN code 8415 pertains to air conditioning machines and machines for household or laundry use, including washing machines and dryers. The code includes the following products:

1. Window or wall air conditioning machines: These machines are used for cooling a single room or small space. They are mounted on the wall or in a window and have a cooling capacity of up to 5 tonnes.
2. Split-system air conditioning machines: These machines are used for cooling multiple rooms or larger spaces. They consist of an outdoor unit that houses the compressor and an indoor unit that contains the evaporator. Split-system air conditioning machines can have a cooling capacity of up to 10 tonnes.
3. Central air conditioning machines: These machines are used for cooling large commercial or industrial spaces. They consist of a centralized cooling system that is connected to a network of ducts that distribute cool air throughout the building. Central air conditioning machines can have a cooling capacity of up to 500 tonnes.
4. Household or laundry washing machines: These machines are used for washing clothes and other household items. They can be either top-loading or front-loading and come in different capacities ranging from 5 kg to 15 kg.
5. Household or laundry drying machines: These machines are used for drying clothes and other household items. They can be either electric or gas-powered and come in different capacities ranging from 5 kg to 15 kg.

Exceptions to the GST Rate:

As mentioned earlier, there are a few exceptions to the 28% GST rate for HSN code 8415. Solar-powered air conditioning machines attract a GST rate of 5% instead of the usual 28%. This is to encourage the use of renewable energy sources and promote eco-friendliness. Parts of air conditioning machines such as compressors, condensers, and evaporators attract a GST rate of 18% instead of the usual 28%. This is because these parts are essential components of air conditioning machines and are used for repair and maintenance purposes. Household or laundry washing machines of a capacity not exceeding 10 kg attract a GST rate of 18% instead of the usual 28%. This is to provide relief to the lower income groups and promote the use of energy-efficient appliances.

Conclusion:

The HSN code 8415 is an important code under the GST regime as it covers a wide range of products used in households, commercial and industrial spaces. The GST rate for products falling under this code is 28%, with a few exceptions. It is important to keep these rates in mind while buying or selling products falling under HSN code 8415. Understanding the HSN code system and the corresponding GST rates is essential for businesses to comply with the tax laws and avoid penalties.

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