HSN codes
HSN codes and GST rates for machinery and parts makers
A small manufacturer of machines and parts lives in chapter 84, buys from chapters 72 to 76 and bills a mix of both. These are the codes it uses most.
In short
Machines without a specific heading usually sit under HSN 8479, pumps under 8413, compressors under 8414 and gears and shafts under 8483. SimpleERP stores the HSN and rate on each product and prints both on every line.
Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.
The data
The codes and usual rates
| HSN | Goods | Usual GST rate | Notes |
|---|---|---|---|
| 8479 | Machines with individual functions, not elsewhere specified | 18% | Special purpose machines |
| 8413 | Pumps for liquids | 18% | Hand pumps and some farm pumps have a lower rate; check |
| 8414 | Air compressors, blowers and fans | 18% | Industrial and ceiling fans too |
| 8483 | Transmission shafts, gears, gearboxes and couplings | 18% | Bearing housings and pulleys too |
| 8482 | Ball and roller bearings | 18% | Often bought out |
| 8481 | Valves and taps | 18% | Industrial and plumbing valves |
| 8466 | Parts and accessories for machine tools | 18% | Jigs, fixtures and tool holders |
| 8208 | Knives and cutting blades for machines | 18% | Shear blades and cutters |
| 8207 | Interchangeable tools: drills, taps, dies, inserts | 18% | Consumable tooling |
| 8501 | Electric motors | 18% | Bought out and fitted to machines |
| 8432 | Agricultural and horticultural machinery | check | Farm machinery has a lower rate than general machinery |
| 7326 | Other articles of iron or steel | 18% | Fabricated and forged parts |
| 7318 | Bolts, nuts, screws and washers | 18% | Fasteners |
| 7214 | Steel bars and rods | 18% | Bright bars and rounds for turning |
| 7208 | Hot-rolled flat steel | 18% | Plate for frames and bases |
| 7604 | Aluminium bars and profiles | 18% | Extrusions |
| 7407 | Copper and brass bars and rods | 18% | Bushes and fittings |
| 4016 | Rubber parts: seals, gaskets, mountings | 18% | Bought-out parts |
| 2710 | Lubricating oils and greases | 18% | Under GST, unlike diesel |
Sources: CBIC: Customs tariff (HSN chapters), GST Council: rate changes effective 22 September 2025, CBIC: GST rates and notifications. Verified .
Which HSN codes does a machinery maker use most?
Machines and their parts live in chapter 84, where the heading follows what the machine does: pumps for liquids in 8413, air pumps, compressors and fans in 8414, transmission shafts, gears and bearing housings in 8483, bearings in 8482, valves in 8481, and machines with no more specific home in 8479. Electric motors cross into chapter 85 under 8501.
Inputs differ because a machine shop buys metal, not machines: steel bars in 7214, flat steel in 7208, aluminium in 7604, brass in 7407, fasteners in 7318, plus bought-out bearings, motors and rubber parts. Most of these carry 18%, but farm machinery and hand pumps have their own lower rates, so a code copied from the wrong heading shows up as the wrong tax.
How to check a rate before billing
Most machinery and parts carry the same rate, which is why the exceptions catch people out. Check these before you bill a new product.
- Specific beats general: use 8479 only when no other heading describes the machine; a pump is 8413 even if it is special.
- Parts follow the machine where a part is made only for it, but general parts such as bearings, bolts and gears keep their own headings.
- Farm use matters: agricultural machinery and some pumps for farm use have had lower rates than general machinery.
- Search the code in the CBIC tariff or the GST portal's HSN search, and ask your CA when a product could fall under two headings.
HSN on invoices and the GSTR-1 HSN summary in SimpleERP
A machinery invoice can carry the machine, spares and a few bought-out parts. SimpleERP keeps each line's code and rate and totals them by code.
- HSN on every product and every invoice line, so 8479 for the machine and 8483 for the spare gearbox print side by side.
- Four or six digits by turnover, as notified: currently four digits on B2B invoices up to ₹5 crore of aggregate turnover and six above it.
- The HSN summary report groups sales by code with taxable value, CGST, SGST and IGST, and exports to CSV for GSTR-1 table 12. See HSN codes on invoices and GSTR-1 table 12.
- Made from a bill of materials: the machine carries its own HSN on the invoice while the steel and parts it used keep theirs in stock.
Illustration of a profit and loss statement for April to September 2026 with net profit of ₹4,12,800, a GST summary and the lock date.
Inputs and input tax credit for machinery makers
Steel, bought-out parts and tooling come in on supplier bills, and the codes on those bills are what your GSTR-2B lists.
- Bars, plate and profiles arrive under 7214, 7208 and 7604; bearings, motors and seals under 8482, 8501 and 4016.
- Same rate in and out for most machines means the credit is used up month by month; farm machinery at a lower rate can leave credit building up.
- Credit follows GSTR-2B: the purchase register lists every bill with GSTIN, HSN and tax and exports to CSV so your CA can match it against GSTR-2B.
- Capital goods count too: a new lathe or CNC machine for the shop usually carries credit when used for taxable sales.
FAQ
Questions, answered
How many digits of HSN must a machinery maker print?
As notified, a business with aggregate turnover up to ₹5 crore in the previous year shows at least four digits on B2B invoices, such as 8479 or 8413. Above ₹5 crore you show six digits on every invoice, such as 847989. More digits are always allowed and many exporters print eight.
What is the GST rate on machinery?
Most general machinery and parts in chapter 84, such as 8479, 8414 and 8483, have usually been taxed at 18%. Agricultural machinery and some pumps have had lower rates. Confirm the rate for each product before billing. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
Is ITC available on steel bars for a machine shop?
Generally yes. Steel bars, plate and bought-out parts used to make machines for sale qualify for input tax credit when the supplier's bill appears in GSTR-2B and the other conditions are met. With inputs and machines usually at 18%, the credit is normally used up.
Where do I set HSN in SimpleERP?
Open the product, type the HSN code and pick the GST rate. Every invoice line for that product then carries both, and the HSN summary report groups sales by code. For a full catalogue of machines and spares, fill the HSN column in the product CSV import.
Related
Keep reading
GST billing for manufacturers
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Read moreHSN code
The number that classifies goods for GST and customs, and so decides their GST rate.
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