written by | November 8, 2022

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

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Table of Content


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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The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.