GST Rate for Tools, Knives and Cutlery

Home » Learn » GST » GST Rate for Tools, Knives and Cutlery

GST Rate for Tools, Knives and Cutlery

GST rate for tools, knives and cutlery was fixed in the GST Council meeting held on 18th May 2017. The GST Council has fixed rates for all goods and services supplied in India under five rates, namely 0%, 5%, 12%, 18% and 28%. The GST rates are based on HSN code, an internationally used system for classifying goods in the course of international trade. With the GST Portal getting live, the Government starting the new application process for GST registration in India and GST shall start effect from 1st July 2017. In this article, let us look at the GST rate for tools, knives and cutlery in detail.

HSN Code for Tools, Knives and Cutlery

Tools, implements, cutlery, knives, spoons and forks fall under chapter 82 of the HSN code. Under this chapter, all goods are taxed at 0%, 12%, 18% or 28%. No product is taxed at 5% GST.

Agricultural and Hand Tools Exempt from GST

Agricultural implements manually operated or animal driven is exempt from GST. Automatic or power operated tools used for agriculture are taxable under GST.

Also, hand tools, like spades, shovels, mattocks, picks, hoes, forks and rakes; axes, bill hooks and similar hewing tools; secateurs and pruners of any kind; scythes, sickles, hay knives, hedge shears, timber wedges and other tools of a kind used in agriculture, horticulture or forestry is not taxable under GST.

Know the Benefits of GST to Farmers.

12% under GST for Knives

12% GST shall apply to Paper knives, knives with cutting blades, serrated or not (including pruning knives) and pencil sharpeners.

Cutlery like spoons & forks Taxed at 18% GST

Spoons, forks, ladles, skimmers, cake servers, fish-knives, butter-knives, sugar tongs and similar kitchen or tableware are taxed at 18% GST.

Other Tools, Knives and Cutlery Taxed at 18% GST

As per chapter 82 of the HSN code, the Ministry shall tax the following types of tools, knives and cutlery at 28%:

  • Files, rasps, pliers (including cutting pliers), pincers, tweezers, metal cutting shears, pipe cutters, bolt croppers, perforating punches and similar hand tools.
  • Hand-operated spanners and wrenches (including torque meter wrenches but not including tap wrenches); interchangeable spanner sockets, with or without handles.
  • Hand tools (including glaziers’ diamonds), not elsewhere specified or included; blow lamps; vices, clamps and the like, other than accessories for and parts of, machine-tools or water-jet cutting machines; anvils; portable forges; hand or pedal-operated grinding wheels with frameworks
  • Tools of two or more, put up in sets for retail sale.
  • Interchangeable tools for hand tools, whether or not power-operated, or for machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning or screw driving), including dies for drawing or extruding metal, and rock drilling or earth-boring tools.
  • Knives and cutting blades, for machines or mechanical appliances.
  • Plates, sticks, tips and the like for tools, unmounted, of cermets.
  • Hand-operated mechanical appliances, weighing 10 kg or less, used in the preparation, conditioning or serving of food or drink
  • Scissors, tailors’ shears and similar shears, and blades therefor.

Know the GST rate for mechanical tools.

Other Tools, Knives and Cutlery Taxed at 28% GST

As per chapter 82 of the HSN code, the Ministry shall tax the following types of tools, knives and cutlery at 28%:

  • Razors and razor blades (including razor blade blanks in strips)
  • Other articles of cutlery (for example, hair clippers, butchers’ or kitchen cleavers, choppers and mincing knives,); manicure or pedicure sets and instruments (including nail files); other than paper knives, pencil sharpeners

Post by IndiaFilings is committed to helping entrepreneurs and small business owners start, manage and grow their business with peace of mind at an affordable price. Our aim is to educate the entrepreneur on the legal and regulatory requirements and be a partner throughout the entire business life cycle, offering support to the company at every stage to make sure they are compliant and continually growing.