What is the HSN Code for Fabrication Services?
Fabrication means cutting, bending, welding and assembling different parts to make a new structure or product. In many businesses fabrication is done as a job work service on goods owned by the customer. Under GST such fabrication activities are normally treated as service and are covered under specific service accounting codes which work similar to HSN codes for goods.
Examples include metal fabrication of industrial parts, sheet metal fabrication for enclosures and frames, and structural fabrication for buildings and machinery. The correct code depends on whether the fabricator is supplying only the service on customer material or is also supplying the finished fabricated goods from his own material.
Book A Demo
Classification of Metal and Sheet Metal Fabrication under HSN
Where a fabricator receives raw material from the customer and returns the fabricated item, the activity is usually covered under the service code for manufacturing services on physical inputs owned by others. This applies to cutting, bending, punching and welding carried out on metal plates, sections, tubes and similar inputs.
If the fabricator buys metal on his own account and supplies fabricated structures such as beams, columns, frames or platforms, the supply is treated as goods. In such cases the classification generally shifts to the chapter that covers structures and parts of structures of iron or steel or other relevant commodity chapter. The tax invoice must clearly state whether it is a goods supply or service supply.
Fabrication HSN Code Classification and GST Rates
Here are some commonly used HSN codes and GST rates for this category
| Section | |
|---|---|
| Section No | 15 |
| Section Title | Guide to HSN Section 15 |
| Section Description | BASE METAL & ARTICLES OF BASE METAL |
| Chapter | |
|---|---|
| Chapter No | 73 |
| Chapter Title | Articles Made of Iron/Steel |
| Chapter Description | Articles of iron or steel |
4 Digit HSN Code Classification
8 Digit HSN Code Classification
| HSN Code | HSN Code Title | GST Rate |
|---|---|---|
| 73081000 | Bridges and Bridge Sections | 18% |
| 73082011 | Transmission Line Towers (Assembled or Not) | 18% |
| 73082019 | Lattice masts | 18% |
| 73082020 | Towers and lattice masts : Lattice masts | 18% |
| 73083000 | Doors, windows, frames, thresholds | 18% |
| 73084000 | Scaffolding, propping equipment | 18% |
| 73089010 | Beams, Channels, Pillars & Girders for Structures | 18% |
| 73089020 | Other : Drop rods | 18% |
| 73089030 | Hatchway, Rails & Bulkheads for Ships: Hull Parts | 18% |
| 73089040 | Other : Galvanised tension bars | 18% |
| 73089050 | Mining structures | 18% |
| 73089060 | Other : Truss rods | 18% |
| 73089070 | Tubular Steel Poles for Electric Transmission & Distribution Lines | 18% |
| 73089090 | Iron/Steel Structures & Structural Components | 18% |
| 73261100 | Forged or stamped – Grinding balls for mills | 18% |
| 73261910 | Forged or stamped – For automobiles and earthmoving equipment | 18% |
| 73261990 | Forged or stamped, other | 18% |
| 73262010 | Tyre Bead Wire Rings | 18% |
| 73262090 | Steel Wire Articles (Other) | 18% |
| 73269010 | Other | Belt Lacing Of Steel | 18% |
| 73269020 | Machinery Belt Fasteners | 18% |
| 73269030 | Drain Covers, Plates & Frames for Sewage & Water Systems | 18% |
| 73269040 | Other | Enamelled Iron Ware | 18% |
| 73269050 | Other appliances : Agricultural or horticultural | 18% |
| 73269060 | Other | Manufactures Of Stainless Steel | 18% |
| 73269070 | Other | Articles Of Clad Metal | 18% |
| 73269080 | Articles of Iron or Steel | 18% |
| 73269091 | Other | Other | Shanks | 18% |
| 73269099 | Machinery, Appliances & Parts | 18% |
* GST rates may vary based on the latest GST notifications
Understanding Fabrication Services under GST
For GST, fabrication services are taxable in the state where the service is performed or where the contract places the supply. If the activity qualifies as job work, then special provisions relating to job work may apply for movement of goods and time limits for return of processed goods.
Fabricators should maintain job work registers, delivery challans and proper documentation of raw material received and finished goods sent back. This ensures that there is no confusion during departmental verification and that principal manufacturers are able to claim full input tax credit on fabrication charges.
Importance of Correct Fabrication HSN Code for Taxation
Using the correct fabrication service code is important because the rate of tax, place of supply and eligibility of input tax credit may depend on the classification. Wrong classification can lead to short payment of tax, interest liability and denial of input tax credit to the recipient.
Businesses engaged in fabrication should study the description of service codes in detail, consider advance rulings issued for similar activities and, where necessary, take professional advice. Correct classification helps in accurate pricing, smoother GST return filing and fewer disputes in the long run.
