Detailed Notes on Nut Bolt HSN Code and its Impact in the Sector

HSN, the Harmonized System of Nomenclature, is a code that systematically classifies goods in national and international markets. A 6 – digit code classifies various products in groups. The B2B and B2C tax invoices must mention the HSN code. Introduced by the World Customs Organization (WCO), the HSN code applies to customs and GST. It makes filing returns easier as the need to upload details about the goods is eliminated.

Did you know? HSN codes are accepted worldwide.

Also read: GSTR-8: Return, Filing, Format, Eligibility & Rules

How does HSN function in India?

After the introduction of GST in India, HSN has been used under a 3-tiered system. The system is defined below:

HSN codes have 21 sections. The sections contain 99 chapters, along with 1,244 headings and 5,224 sub-headings.
Each section number is further divided into chapters. These chapters include headings and sub-headings.
The sections and chapters describe the product
The headings and the sub-headings mention essential details about the commodity

GST Rates and HSN code of the nut bolt.

The table below shows the bolt nut HSN code and GST rates.

HSN Code	Description	Rate (%)	CESS (%)	Effective Date	Rate Revision
7318	Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles	18 %	0	01/ 07/ 2017	18 per cent
731811	Coach screws	18 %	0	01/ 07/ 2017	18 per cent
73181110	Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles - coach screws: machine screws	18 %	0	01/ 07/ 2017	18 per cent
73181190	Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles - coach screws: Other	18 %	0	01/ 07/ 2017	18 per cent
73181200	Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles - other wood screws	18 %	0	01/ 07/ 2017	18 percent
73181300	Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles - screw hooks and screw rings	18 %	0	01/ 07/ 2017	18 percent
73181400	Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles - self-tapping screws	18 %	0	01/ 07/ 2017	18 percent
73181500	Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles - other screws and bolts, whether or not with their nuts or washers	18 %	0	01/ 07/ 2017	18 percent
73181600	Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles - nuts	18 %	0	01/ 07/ 2017	18 percent
73181900	Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles - other	18 %	0	01/ 07/ 2017	18 percent
73182100	Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles - spring washers and other lock washers	18 %	0	01/ 07/ 2017	18 percent
73182200	Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles - other washers	18 %	0	01/ 07/ 2017	18 percent
73182300	Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles - rivets	18 %	0	01/ 07/ 2017	18 percent
73182400	Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles - cotters and cotter-pins	18 %	0	01/ 07/ 2017	18 percent
731829	Other	18 %	0	01/ 07/ 2017	18 percent
73182910	Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles - other: circlips	18 %	0	01/ 07/ 2017	18 percent
73182990	Screws, bolts, coach screws, nuts, screw hooks, cotters, cotter-pins, rivets, washers (incl spring washers), and other similar articles, of iron / steel-threaded articles - other: other	18 %	0	01/ 07/ 2017	18 percent

Why is HSN important under GST?

The main aim of the HSN code is to make the GST process systematic and globally accepted. This code eliminates the need to upload a detailed description of a commodity. Thus, saving time. It also makes filing hassle-free and easier as GST returns are automated. A service provider needs to mention an HSN-wise summary of the sales in the GSTR – 1 if the turnover of the business increases ₹1. 5 crores.

Who needs to use the HSN code?

The HSN codes should be used by the following:

Businesses with a turnover of ₹1.5 crores or less need not use the HSN
Businesses with a turnover of more than ₹1.5 crores, but less than ₹5 crores should use the 2- digit HSN codes
Businesses having a turnover of more than ₹5 crores must use 4- digit HSN codes
Businesses dealing with exports and imports need to use an 8- digit HSN code

Classification of goods under HSN

The Central excise and customs department has been using the HSN system in India since 1986. In India, two more digits were added to the 6-digit code for better differentiation of the commodities. The HSN code is classified as under

·The first two digits represent the chapter number of a commodity

·The next 2 digits refer to the heading number

·The last 2 digits represent the product code.

Benefits of the HSN Code

The benefits of the HSN code are mentioned below:

It is used in filing returns
It makes it easier to have international business dealings
It offers a uniform global taxation system
The code provides a uniform system of classifying goods for Customs and Central Excise globally

Also read: Impact of GST Rate on Steel and Iron in India

Conclusion

We hope this article has been of help in providing information about the Nut Bolt HSN Code. The use of HSN codes is mainly for traders and dealers. They must adopt the 2-digit, 4-digit, or 8-digit codes depending on the category (annual business turnover) to which they belong. The HSN code helps save time and money when filing the GST.

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FAQs

Q: How does HSN code function?

Ans:

After the introduction of GST in India, HSN has been used under a 3-tiered system. The system is defined below:

HSN codes have 21 sections. The sections contain 99 chapters, along with 1,244 headings and 5,224 sub-headings.
Each section number is further divided into chapters. These chapters contain headings and sub-headings.
The sections and chapters describe the product
The headings and the sub-headings mention important details about the commodity

Q: How are goods classified under the HSN code?

Ans:

It is classified as under

·The first two digits represent the chapter number of the commodity

·The next two digits refer to the heading number

·The last two digits represent the product code

Q: Is the HSN code required on the invoice?

Ans:

Turnover less than or equal to ₹5 crores must use a 4-digit HSN code for all the B2B invoices. However, this reporting is optional for B2C invoices.

Q: Who needs to use the HSN code?

Ans:

HSN has to be used by the following:

Businesses may utilise 4-digit HSN numbers if their annual revenue exceeds ₹5 crores. Businesses that deal in the import and export goods are intended for the 8-digit HSN code.

Q: What is the HSN code necessary?

Ans:

The main aim of the HSN code is to make the GST process systematic and globally accepted. This code eliminates the need to upload a detailed description of a commodity. Thus, saving time. It also makes filing hassle-free and more effortless as GST returns are automated. A service provider needs to mention an HSN-wise summary of the sales in the GSTR – 1 if the business turnover increases ₹1.5 crores.

Q: What is the HSN code for a nut bolt?

Ans:

The 4 - digit nut bolt HSN code is 7318.

Q: What is the HSN code in India?

Ans:

Harmonized System of Nomenclature (HSN) is used to classify goods systematically.

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