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.
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.
Here are some commonly used HSN codes and GST rates for this category:
| HSN Code | Product Name | Product Description | Product Type or Variant | GST Rate |
|---|---|---|---|---|
| 9988 | Fabrication job work services | Manufacturing services on physical inputs owned by others such as metal fabrication job work | Service supply | 18% |
| 9989 | Other fabrication services | Fabrication and processing services not covered elsewhere in manufacturing services | Service supply | 18% |
| 7308 | Fabricated steel structures | Beams, columns, frames and other fabricated structures of iron or steel | Goods supply | 18% |
The above service accounting codes and GST rates are indicative. Where fabrication is part of a works contract related to immovable property it may be classified under construction services with separate rules and rates.
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.
I’m CA Shivani Kandalkar, a Chartered Accountant based in Mumbai with over 1 year of experience. My focus areas are Taxation and GSTR compliance, where I help individuals and businesses file accurate returns and avoid notices. With a background in M.Com and professional training as a Chartered Accountant, I aim to provide clear, practical guidance that simplifies tax laws and supports better financial decisions.
Frequently Asked Questions
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What is the HSN code for metal fabrication?
Metal fabrication done as job work on material owned by the customer is generally treated as a service and classified under code 9988 for manufacturing services on physical inputs owned by others. If the fabricator supplies finished steel structures from his own material, that supply is usually treated as goods and classified under headings like 7308 for fabricated steel structures.
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How is sheet metal fabrication classified in HSN?
Sheet metal fabrication such as cutting, bending, punching and welding on customer supplied sheets is normally covered under 9988 as fabrication job work services. Where the fabricator purchases sheet metal and supplies completed enclosures, frames or panels as goods, the classification shifts to the relevant goods chapter, often 7308 for structures and parts of structures of iron or steel.
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What fabrication services require an HSN code?
All taxable fabrication activities under GST require an appropriate code. This includes metal fabrication job work on customer material, sheet metal fabrication, structural fabrication for beams and frames, and other processing services covered under 9988 or 9989. Even when fabrication forms part of a works contract for immovable property, a suitable service code from the construction and works contract category must be used on invoices.
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Can HSN codes vary for different types of fabricated products?
Yes, HSN and service codes can change based on the nature of supply. Job work and manufacturing services on customer owned inputs are usually classified under 9988 or 9989, while finished fabricated products supplied from the fabricator’s own material are treated as goods under headings like 7308 or other relevant commodity chapters. Special structures or non steel items may fall under different goods headings.
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How do fabrication services impact GST charges?
Fabrication services generally attract the standard GST rate for such services, commonly 18%. Correct classification affects the rate of tax, place of supply and eligibility of input tax credit for the recipient. When job work provisions apply, they also influence how goods move between principal and job worker and how long materials can remain with the fabricator. Using the right code helps avoid short payment of tax, interest and disputes during GST verification.