Switches HSN Code: Everything You Need to Know
Switches control the flow of power and data in every building and network. Under GST, electrical switches, smart switches and network switches must be billed with the right HSN code so that GST rate and return reporting match the law. This guide explains how different types of switches are classified, how HSN code affects GST and pricing, and how to stay accurate while filing returns.
HSN Code for Smart Switches
Smart switches are modern devices that allow you to control lights and appliances using remote, app or voice. They often include wifi or radio modules along with normal switch contacts. In GST, smart switches are generally treated as electrical apparatus for switching or protecting circuits. Many products in this group are covered under the broad electrical apparatus heading for switches.
Common HSN codes for switches with GST rate are listed below.
| HSN Code | Product Name | Product Description | GST Rate |
|---|---|---|---|
| 8536 | Electrical wall switches | Standard wall mounted and modular switches used for lights and power points | 18% |
| 8536 | Smart switches and dimmers | Smart wifi switches, touch switches and dimmers for home and office use | 18% |
| 8517 | Network switches | Ethernet switches used for routing data in computer networks | 18% |
While preparing invoices you can pick the HSN code based on whether the product is an electrical power switch or a data communication switch.
HSN Code for Electrical and Light Switches
Electrical switches, piano type switches and modular switches for lights and sockets are grouped together under the electrical apparatus heading. This heading covers items that open or close an electrical circuit such as switches, relays and fuses.
Under GST, these switches generally attract the standard goods GST rate, which is usually 18%. You should still check the latest notifications for any special rate given to low value domestic items or special energy saving devices.
How HSN Code Affects the Switches Industry?
Correct HSN classification gives clarity on GST rate, input tax credit and reporting in returns. For manufacturers and importers, the switch HSN code also decides customs duty and any safeguard duty. If the wrong HSN code is used, GST may be charged at a lower rate and can later lead to tax demand and interest. Using a uniform HNS code across purchase, production and sale makes pricing easier and supports smooth audits.
Benefits of Understanding HSN Codes for Switches
For retailers and electricians, awareness of correct switch HSN code means accurate billing and fewer queries from customers. For traders and distributors, it helps while comparing supplier invoices, calculating margins and planning stock. For large projects, correct HSN codes in contracts and purchase orders reduce disputes during certification and payment. It also helps in claiming input tax credit correctly in GST returns.
Conclusion
Switches for electrical power and network data are covered under different HSN headings. Electrical wall switches and smart switches are usually grouped under the electrical apparatus heading, while network switches fall under the telecommunication equipment heading. By using the correct HSN code and keeping rate mapping updated, businesses dealing in switches can keep GST compliance simple and reliable.
As a Chartered Accountant with over 12 years of experience, I am not only skilled in my profession but also passionate about writing. I specialize in producing insightful content on topics like GST, accounts payable, and income tax, confidently delivering valuable information that engages and informs my audience.
Frequently Asked Questions
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What is the HSN code for normal electrical switches?
Normal electrical switches for lights and sockets are usually classified under the broad electrical apparatus heading for switches. You should confirm the exact code from the tariff and map it in your billing system.
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How are smart switches classified under GST?
Smart switches are also treated as electrical apparatus because their main function is still switching power. Extra features like wireless control do not change the basic heading in most cases.
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Does HSN code affect the price of light switches?
Yes, HSN code fixes the GST rate. A higher rate increases the tax part of the price. Correct classification helps you charge the right GST and stay competitive.
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Can I use the same HSN code for light switches and network switches?
Light switches and network switches are usually classified in different chapters. You should not use one common code for both, as this can cause confusion in GST and customs.
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How does HSN classification help with GST on switches?
Clear HSN mapping makes it easy to prepare invoices, e way bills and returns. It supports accurate input tax credit and reduces the risk of disputes during assessment or audit.