Tools HSN Code: Classification for Hand Tools and Interchangeable Tools
Tools are used in every industry, from construction and engineering to carpentry, plumbing and home repair. Hand tools such as spanners, pliers, hammers and screwdrivers, as well as interchangeable tools like bits and sockets, all need to be billed with the correct HSN code under GST. This helps traders, hardware shops and industrial suppliers to charge GST properly and keep accurate records.
Under GST, most hand tools are classified under HSN 8205, while interchangeable tools such as tool bits and sockets are generally grouped under HSN 8207. Power operated tools may fall under a different heading, such as HSN 8467. For most of these tool products, the usual GST rate is 18 %.
What is the HSN Code for Tools?
Common hand tools, such as spanners, hammers, screwdrivers, pliers and similar items, are generally classified under HSN 8205. This heading covers a wide range of non power operated hand tools. Interchangeable tools like drill bits, sockets and tool inserts often fall under HSN 8207, while many power driven hand tools are classified under HSN 8467.
Tools HSN Code and GST Rate Table
| Product type | HSN code | Product description | GST rate |
|---|---|---|---|
| Hand tools such as spanners and pliers | 8205 | Manual hand tools used for tightening, gripping and cutting tasks. | 18% |
| Interchangeable tools such as drill bits and sockets | 8207 | Tool bits and sockets designed to be mounted on hand tools or machines. | 18% |
| Power operated hand tools | 8467 | Hand held tools driven by electric motor, battery or compressed air. | 18% |
These are general entries. Traders should always check the detailed tariff description to confirm the exact sub heading for their product.
How Hand Tools and Interchangeable Tools Are Classified under HSN
Hand tools are classified based on their design and primary function. If a tool is operated by hand without built in power, and is used for cutting, tightening, loosening or shaping, it normally comes under HSN 8205. Interchangeable tools that fit into a holder, such as drill bits and sockets, are grouped under HSN 8207, because they are not complete tools by themselves but parts of a tool system.
When a set includes both the holder and the interchangeable tools, classification is decided by the main character of the set. For example, a socket set supplied with a ratchet handle is still generally treated as an interchangeable tool set and classified under HSN 8207 with 18 % GST.
The HSN Code for Other Types of Tools
Some specialized tools, such as measuring tools, machine tools or cutting tools for metal, may fall under other headings of Chapter 82 or Chapter 84. The correct classification depends on the detailed wording of the tariff and the technical nature of the tool. For everyday hardware trade, however, HSN 8205 and 8207 cover most common hand and interchangeable tools.
If a tool is supplied as part of a machine or appliance, the classification may follow the main machine rather than the tool on a standalone basis. Dealers should keep product catalogues and specifications handy to support their classification during audits.
GST on Tool Products
Most tool products attract 18 % GST under the GST regime. The tax is charged on the invoice value of the goods. Registered buyers such as workshops, factories and contractors can take input tax credit on this GST, which helps reduce their overall tax cost.
For exports of tools, the supplies are usually treated as zero rated, and eligible exporters can claim refunds of input tax credit. Proper documentation, such as shipping bills and export invoices, is important to support such refund claims.
As a Chartered Accountant with more than 8 years of experience, I have refined my skills in the field and developed a true passion for writing. I specialize in creating insightful content on topics such as GST, income tax, audits, and accounts payable. By focusing on delivering information that is both engaging and informative, I aim to share valuable insights that resonate with readers.
Frequently Asked Questions
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What is the HSN code for hand tools?
Most non power operated hand tools such as spanners, pliers, hammers and screwdrivers are generally classified under HSN 8205.
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Are interchangeable tools classified separately under HSN?
Yes. Interchangeable tools like drill bits, sockets and tool inserts are usually classified under HSN 8207, which is separate from the heading for hand tools.
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How does GST apply to tools products?
Tool products commonly attract 18 % GST on their transaction value. Business users can claim input tax credit on this GST when tools are used for taxable supplies.
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Can tools for industrial and household use have different HSN codes?
The same HSN codes are normally used for industrial and household tools if their design and function are similar. The place of use does not usually change the HSN classification.
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Are electric tools classified under the same HSN as manual tools?
No. Many power operated hand tools are classified under HSN 8467, while manual hand tools remain under HSN 8205. The presence of a built in power source is important for classification.