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 %.
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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 Classification and GST Rates
Here are some commonly used HSN codes and GST rates for this category
Section Classification
Chapter Classification
4 Digit HSN Code Classification
8 Digit HSN Code Classification
| HSN Code | HSN Code Title | GST Rate |
|---|---|---|
| 72141010 | Forged – Spring steel quality | 18% |
| 72141090 | Forged – Other | 18% |
| 72142010 | Spring Steel Quality with Indentations or Ribs | 18% |
| 72142090 | Twisted/Rolled Steel with Indentations or Ribs | 18% |
| 72143000 | Other, Of Free Cutting Steel | 18% |
| 72149110 | Mild Steel Bright Bar (Rectangular) | 18% |
| 72149190 | Rectangular cross-section: Other | 18% |
| 72149910 | Other | Other | Of Spring Steel Quality | 18% |
| 72149990 | Other bars and rods of iron or non-alloy steel | Other | 18% |
HSN Code
HSN Code Title
GST Rate
* GST rates may vary based on the latest GST notifications.
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.
