Aluminium HSN Code: Understanding HSN Classifications for Aluminium Products
Aluminium is used in many forms such as sheets, sections, profiles, ladders, cables and foils. It is common in building work, electrical items, packaging and many household products.
To charge GST correctly and keep records clear, businesses must know the correct aluminium HSN code for each product and understand how GST applies to aluminium scrap, sheets and other aluminium items.
What Is the Aluminium HSN Code?
Under GST, aluminium and articles of aluminium are grouped in a separate chapter of the tariff. This chapter covers primary aluminium forms like ingots, bars and billets as well as semi finished and finished products such as sheets, strips, tubes and profiles.
Aluminium scrap also has its own heading inside this chapter. It covers waste and scrap that arises from cutting, machining, rolling or using aluminium products in factories and workshops.
In day to day practice, metal traders and manufacturers set up different item groups in their item master such as aluminium scrap, aluminium sheets, aluminium sections and aluminium ladders. Each group is linked to an appropriate aluminium HSN family from this chapter so that billing and GST returns show a clear breakup of aluminium products.
| HSN Code | Product Description | Product Type or Variant | GST Rate |
|---|---|---|---|
| 7602 | Aluminium waste and scrap | Aluminium scrap for melting and recycling | 18% |
| 76020090 | Aluminium waste and scrap | Other aluminium waste and scrap | 18% |
| 7606 | Aluminium plates, sheets | Aluminium sheets, coils and strips (>0.2 mm) | 18% |
| 76061110 | Aluminium plates, sheets | Rectangular non alloyed electrolytic plates or sheets | 18% |
| 7604 | Aluminium bars, profiles | Aluminium profiles, sections and extrusions | 18% |
| 76042990 | Aluminium bars, profiles | Other aluminium alloy extruded profiles | 18% |
| 7607 | Aluminium foil | Aluminium foil not exceeding 0.2 mm | 18% |
| 76071991 | Aluminium foil | Plain aluminium foil for packing and household use | 18% |
| 7616 | Other articles of aluminium | Aluminium ladders, partitions and similar articles | 18% |
| 76169990 | Other articles of aluminium | Aluminium step ladders and other fabricated articles | 18% |
| 8544 | Insulated wire and cable | Insulated aluminium electrical conductors and cables | 18% |
| 85444920 | Insulated wire and cable | Plastic insulated aluminium cables (other, ≤80 V) | 18% |
HSN Code for Aluminium Scrap, Sheets, and Other Products
Aluminium scrap is normally placed under the aluminium waste and scrap heading in the aluminium chapter 76 . This heading covers metal that is no longer in a regular product shape but is still suitable for melting and recycling. Factories that generate offcuts, turnings and old aluminium parts usually sell them under this scrap heading.
Aluminium sheets, coils and strips are placed in another heading that covers flat rolled products of aluminium. These products are used to make panels, utensils, sign boards, roofing sheets and many other items. For billing, traders often create separate items for different thickness and temper but keep them in one main sheet HSN group.
Aluminium profiles, sections and extrusions used in doors, windows, partitions and frames sit in a heading for aluminium bars, rods and profiles. These products are made by extrusion and cut to required lengths for building and interior work.
Aluminium ladders, aluminium partitions and similar finished items are usually treated as articles of aluminium made from sections and profiles. Many of them still fall within the same broad aluminium chapter, though the exact HSN line may change based on design and use.
Aluminium cables are treated differently. They are electrical conductors and are usually classified in the electrical machinery chapter that covers insulated wire and cables. Even though they use aluminium as the metal, their HSN code follows the electrical cable group rather than the aluminium metal chapter.
Aluminium foil is placed in its own heading in the aluminium chapter. It covers thin rolled aluminium used for packing, food wrapping, pharmaceutical use and insulation. Different thickness and coating types still stay within the same aluminium foil family.
GST on Aluminium Products and HSN Code Classification
Under the present GST structure, most aluminium products such as sheets, sections, ladders and foil are taxed at 18% GST. They are treated as standard goods under the main metal category.
Aluminium scrap also generally attracts 18% GST . Scrap is an important input for secondary aluminium producers and recyclers, so they can claim input tax credit on the GST paid on scrap purchases subject to normal rules.
If an aluminium item is part of a special product such as a composite electrical kit or a complex machine, the GST rate may follow the rate of the main product instead of the basic aluminium rate. In such cases businesses must look at the full description of the supply before deciding the HSN and GST rate.
For GST compliance, aluminium manufacturers and traders configure separate item codes for scrap, sheets, foils, profiles, ladders and cables. Each item is assigned the correct HSN code and GST rate in the accounting software. Invoices show the HSN code and tax amount clearly for all aluminium lines.
During GST return filing, outward supplies are reported HSN wise. This helps the tax department see how much turnover relates to aluminium scrap, how much to sheets and how much to other aluminium articles. Buyers such as fabricators, builders and cable makers can then claim input tax credit on the GST paid, provided they use these items for business and meet the other conditions.
Conclusion
The aluminium HSN code system places primary aluminium, scrap, sheets, profiles, foils and finished articles in one main metal chapter, while special items like aluminium cables follow the electrical cable group.
When businesses map each aluminium product group to the correct HSN code and apply the standard 18% GST slab in normal cases, their billing becomes accurate and GST returns remain clear. This helps them avoid disputes, interest and penalties linked to wrong classification or GST treatment on aluminium products and scrap.
I am a Chartered Accountant with over 20 years of experience and a finance content writer. I focus on educating people about finance and taxation. I have written many blog posts on finance, taxation, trading, and investment on the BUSY website. My goal is to increase financial understanding by making complex concepts easier to grasp and to support educational programs in India.
Frequently Asked Questions
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What is the HSN code for aluminium products in India?
In India, aluminium products are mainly classified in the aluminium and articles of aluminium chapter. This chapter covers primary aluminium, sheets, profiles, foils and many finished articles made from aluminium.
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How does the GST apply to aluminium scrap under HSN code?
Aluminium scrap is classified under a separate waste and scrap heading in the aluminium chapter. In most cases it attracts 18% GST, and buyers such as recyclers and foundries can claim input tax credit on this tax if they use the scrap for business.
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What is the GST rate for aluminium sheets and foils?
Most aluminium sheets, coils, strips and foils are taxed at 18% GST under their respective aluminium HSN codes, unless a special notification sets a different rate for a particular product or use.
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How do aluminium manufacturers use the HSN code for tax filing?
Aluminium manufacturers assign separate HSN codes to scrap, sheets, foils, sections and ladders in their item masters and print these codes on invoices. They then report sales HSN wise in GST returns so that tax on each aluminium product group is clearly declared and input tax credit can be matched by customers.
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Are different types of aluminium products classified under separate HSN codes?
Yes. Aluminium scrap, sheets, profiles, foils and cables do not all share the same HSN line. Scrap and flat products sit in different headings within the aluminium chapter, while insulated aluminium cables fall under the electrical cable heading in the electrical machinery chapter.