Wire HSN Code: Understanding HSN Classifications for Wire Products
Wires are used everywhere in homes, shops, farms and factories. They carry electricity, signals and also tie or bind structures during construction work. For all these uses, it is important to apply the correct wire HSN code so that GST on copper wire, electric wire and binding wire is charged properly.
In this guide you will learn the main wire HSN codes, how copper, electric and binding wires are classified, what GST rates usually apply and how wire manufacturers and traders use these codes in their GST returns.
What Is the Wire HSN Code?
Under GST, wires are classified based on the material and whether they are insulated for carrying electricity. This means there is no single wire HSN code for every type of wire. Instead, different families of HSN codes apply to different types of products.
Bare copper wires that are not insulated are normally classified in chapter seventy four under heading 7408. This heading covers copper wire used in many electrical and industrial applications before insulation or further processing.
Iron and steel wires such as binding wire used in construction are usually classified in chapter seventy two under heading 7217. This heading covers wire of iron or non alloy steel in coils, whether or not coated or plated.
Insulated electric wires used in house wiring, appliances and machines are generally classified in chapter eighty five under heading 8544. This heading covers insulated wire, cable and other insulated electric conductors, whether or not fitted with connectors.
| HSN Code | Product Description | Product Type or Variant | GST Rate |
|---|---|---|---|
| 7408 | Bare copper wire | Copper wire without insulation for electrical and industrial applications | 18% |
| 8544 | Insulated electric wires and cables | House wiring cables, single core and multi core PVC insulated copper wires | 18% |
| 8544 | Flexible electrical cords and control cables | Flexible cords, appliance cords and control cables with insulation | 18% |
| 7217 | Iron or non alloy steel wire | Binding wire for construction, tying rebar and general purpose use | 18% |
| 7217 | Coated or galvanized steel binding wire | GI binding wire and coated steel wire used in construction and fencing | 18% |
HSN Code for Copper, Electric and Binding Wires
Copper wire that is not yet insulated is placed under heading 7408. Inside this heading there are detailed eight digit codes that depend on the type of copper, the size of the cross section and the type of alloy. For day to day GST work, many businesses use 7408 as the base HSN code for bare copper wire.
Electric wires that are already insulated and ready for wiring work usually fall under heading 8544. The detailed eight digit lines in this heading describe whether the conductor is copper or aluminium, the voltage rating and whether the wire or cable is fitted with connectors. Household wires, flexible cords and many control cables are covered in this family.
Binding wire used on construction sites for tying rebar and other structural elements is normally a steel wire. It is generally classified under heading 7217, which covers wire of iron or non alloy steel. Different eight digit codes under this heading depend on the coating and thickness of the wire.
So copper wire, electric wire and binding wire do not share the same HSN code, but each has a clear place in the tariff. Copper wire falls under 7408, insulated electric wire falls under 8544 and iron or steel binding wire falls under 7217. All these codes should be set correctly in the item master of your billing software.
GST on Wires and HSN Code Classification
The GST rate for wires is linked to the HSN heading where they are placed. Under the present slab structure, most standard copper wires under heading 7408 attract 18% GST. Iron and steel wires under heading 7217 also generally fall in the 18% slab.
Insulated electric wires and cables under heading 8544 were earlier placed in higher slabs for some specific items. With the move to a simpler GST structure, most common insulated wires and cables now fall in the standard 18% slab as well. Any remaining special entries where the rate differs need to be checked in the latest notifications.
For binding wire, which is normally classified under heading 7217 as an iron or steel wire, the 18% slab also applies in most cases. This means that for many practical situations, copper wire, electric wire and binding wire all attract 18% GST even though they sit in different chapters and headings.
Because wires are often used as inputs by registered businesses in construction, engineering, electrical projects and manufacturing, correct HSN classification is important for input tax credit. When the wire has the right HSN code and rate on the invoice, the buyer can claim credit more smoothly and avoid disputes during audits.
Wire manufacturers and traders use these HSN codes in their product masters and show them in all tax invoices. While filing GST returns , they report outward supplies with HSN wise summaries so that sales of copper wires, insulated electric wires and binding wires are all clearly mapped to their correct headings and GST rates.
Conclusion
The wire HSN code is a key element in correct GST treatment for wire products. Bare copper wires are grouped in chapter seventy four under heading 7408, iron and steel binding wires are placed in chapter seventy two under heading 7217 and insulated electric wires are grouped in chapter eighty five under heading 8544.
When every wire item is mapped to its correct HSN code and the proper GST slab is applied, usually 18% for most common wires in the present structure, your invoices remain accurate and input tax credit flows correctly through the supply chain. This lowers the risk of notices and penalties linked to wrong HSN codes or wrong GST rates on wire products.
I’m CA Chintan Rathod, a Chartered Accountant based in Nagpur with over 4 years of experience. I specialise in Taxation, helping individuals and businesses plan and file their taxes accurately while staying compliant with the latest regulations. My approach is focused on practical, easy-to-understand guidance so clients can make better financial decisions with confidence.
Frequently Asked Questions
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What is the HSN code for wires in India?
There is no single HSN code for all wires. Bare copper wire usually comes under heading 7408, insulated electric wire comes under heading 8544 and iron or steel binding wire generally comes under heading 7217.
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How does the HSN code for copper wire impact GST?
The HSN code 7408 for copper wire links the product to the GST rate for that heading. Under the current structure, most copper wire entries under 7408 attract 18% GST, so the correct code ensures the right rate and smooth input tax credit.
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Are electric wires classified under the same HSN code as copper wires?
No. Bare copper wire normally uses heading 7408, while insulated electric wires are generally classified under heading 8544. Even when the conductor inside is copper, the presence of insulation and connectors puts the product in the insulated wire heading rather than the bare copper wire heading.
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What are the GST rates for binding wires under HSN code?
Binding wires that are classified as iron or steel wire under heading 7217 are generally taxed at 18% GST under the current slab structure. Any different rate would depend on a specific notification for a particular type of steel product.
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How do wire manufacturers use the HSN code for GST filing?
Wire manufacturers set HSN codes like 7408, 8544 and 7217 in their item masters and print these on every invoice. They then file GST returns with HSN wise summaries so that all wire sales are clearly reported under the correct headings and tax rates.