GST Rate for Machinery, Mechanical Equipment and Boilers

GST rollout is set to begin from 1st July 2017 in India. With GST implemented, India would become one of the single largest markets for goods and services across the world. GST will deliver tremendous advantages to the nation and businesses, by reducing the number of taxes and improving ease of doing business. Further, the GST rate for machinery, mechanical equipment and boilers are now based on the HSN code, making import of such products seamless. In this article, we look at the GST rate applicable for machinery, mechanical equipment and boilers in India.

HSN Code for Machinery, Mechanical Equipment and Boilers

The HSN code and GST rate for nuclear reactors, boilers, machinery and mechanical appliances are based on chapter 84 of the HSN.

Handlooms NOT Taxable under GST

To provide relief to the common man and micro-businesses, handlooms have not been taxed under GST.

Machinery or Equipment Attracting 5% GST

The following goods under chapter 84 of the HSN code attract 5% GST:

• Hand pumps and parts thereof
• Solar water heater and system
• Renewable energy devices & spare parts for their manufacture
  • Biogas plant
  • Solar power based devices
  • Solar power generating system
  • Windmills and wind operated electricity generator
  • Waste to energy plants/devices
  • Solar lantern/solar lamp
  • Ocean waves/tidal waves energy devices/plants

Know more about the benefits of GST for farmers.

Machinery or Equipment Attracting 12% GST

The following goods under chapter 84 of the HSN code attract 12% GST:

• Nuclear fuel elements
• Power-driven pumps primarily designed for handling water, namely, centrifugal pumps (horizontal and vertical), deep tube-well turbine pumps, submersible pumps, axial flow and mixed flow vertical pumps
• Bicycle pumps, hand pumps etc.
• Milking machines and dairy machinery
• Sewing machines
• Composting Machines

Machinery or Equipment Attracting 18% GST

The following goods under chapter 84 of the HSN code attract 18% GST:

• Auxiliary plant for use with boilers (for example, economisers, superheaters, soot removers, gas recoverers); condensers for steam or other vapour power units
• Producer gas or water gas generators, with or without their purifiers; acetylene gas generators and similar water process gas generators, with or without their purifiers
• Steam turbines and other vapour turbines
• Hydraulic turbines, water wheels, and regulators thereof
• Turbo-jets, turbopropellers and other gas turbines – turbojets
• Other engines and motors (Reaction engines other than turbojets, Hydraulic power engines and motors, Pneumatic power engines and motors, other, parts) [other than wind turbine or engine]
• Furnace burners for liquid fuel, for pulverised solid fuel or for gas; mechanical stokers, including their mechanical grates, mechanical ash dischargers and similar appliances.
• Industrial or laboratory furnaces and ovens, including incinerators, non-electric.
• Calendering or other rolling machines, other than for metals or glass, and cylinders therefor
• Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases
• Pulley tackle and hoists other than skip hoists; winches and capstans; jacks
• Ship’s derricks; cranes including cable cranes; mobile lifting frames, straddle carriers and works trucks fitted with a crane
• Parts suitable for use solely or principally with the machinery
• Presses, crushers and similar machinery used in the manufacture of wine, cider, fruit juices or similar beverages.
• Machinery for the industrial preparation or manufacture of food or drink, other than machinery for the extraction or preparation of animal or fixed vegetable fats or oils.
• Machinery for making pulp of fibrous cellulosic material or for making or finishing paper or paperboard.
• Bookbinding machinery, including booksewing machines.
• Other machinery for making up paper pulp, paper or paperboard, including cutting machines of all kinds.
• Machinery, apparatus and equipment for preparing or making plates, printing components; plates, cylinders and lithographic stones, prepared for printing purposes (for example, planed, grained or polished).
• Printing machinery used for printing by means of plates, cylinders and other printing components; other printers, copying machines and facsimile machines, whether or not combined; parts and accessories thereof.
• Machines for extruding, drawing, texturing or cutting man-made textile materials.
• Machines for preparing textile fibres; spinning, doubling or twisting machines and other machinery for producing textile yarns; textile reeling or winding (including weft-winding) machines and machines for preparing textile yarns for use on the machines of heading
• Weaving machines (looms).
• Knitting machines, stitchbonding machines and machines for making gimped yarn, tulle, lace, embroidery, trimmings, braid or net and machines for tufting.
• Auxiliary machinery for use with machines (for example, dobbies, Jacquards, automatic stop motions, shuttle changing mechanisms); parts and accessories suitable for use solely or principally with the machines of this heading (for example, spindles and spindles flyers, card clothing, combs, extruding nipples, shuttles, healds and heald frames, hosiery needles)
• Machinery for the manufacture or finishing of felt or nonwovens in the piece or in shapes, including machinery for making felt hats; blocks for making hats.
• Machinery for washing, cleaning, wringing, drying, ironing, pressing (including fusing presses), bleaching, dyeing, dressing, finishing, coating or impregnating textile yarns, fabrics or made up textile articles and machines for applying the paste to the base fabric or other support used in the manufacture of floor covering such as linoleum; machines for reeling, unreeling, folding, cutting or pinking textile fabrics.
• Braille typewriters, electric or non-electric
• Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus
• Machinery parts, not containing electrical connectors, insulators, coils, contacts or other electrical features not specified or included elsewhere
• Machines and mechanical appliances having individual functions, not specified or included elsewhere

GST rate for construction and building materials.

Machinery or Equipment Attracting 28% GST

The following goods under chapter 84 of the HSN code attract 28% GST:

• Spark-ignition reciprocating or a rotary internal combustion piston engine
• Compression-ignition internal combustion piston engines (diesel or semi-diesel engines)
• Parts suitable for use solely or principally with the engines
• Pumps for dispensing fuel or lubricants of the type used in filling stations or garages (except hand pumps), Fuel, lubricating or cooling medium pumps for internal combustion piston engines, concrete pumps, other rotary positive displacement pumps
• Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters
• Air-conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated
• Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines
• Storage water heaters, non-electric (except solar water heater and system), pressure vessels, reactors, columns or towers or chemical storage tanks, glass-lined equipment, autoclaves other than for cooking or heating food, not elsewhere specified or included, cooling towers and similar plants for direct cooling (without a separating wall) by means of recirculated water, plant growth chambers and rooms and tissue culture chambers and rooms having temperature, humidity or light control, apparatus for rapid heating of semiconductor devices, apparatus for chemical or physical vapour deposition on semiconductor wafers; apparatus for chemical vapour deposition on LCD substrates
• Dishwashing machines, household and other
• Weighing machinery (excluding balances of a sensitivity of 5 centigrams or better), including weight operated counting or checking machines; weighing machine weights of all kinds
• Fire extinguishers
• Fork-lift trucks; other works trucks fitted with lifting or handling equipment
• Other lifting, handling, loading or unloading machinery (for example, lifts, escalators, conveyors, teleferics)
• Self-propelled bulldozers, angledozers, graders, levellers, scrapers, mechanical shovels, excavators, shovel loaders, tamping machines and road rollers
• Other moving, grading, levelling, scraping, excavating, tamping, compacting, extracting or boring machinery, for the earth, minerals or ores; piledrivers and pileextractors; snowploughs and snowblowers.
• Printer, photocopying, fax machines, ink cartridges
• Household or laundrytype washing machines, including machines which both wash and dry
• Other office machines (for example, hectograph or stencil duplicating machines, addressing machines, automatic banknote dispensers, coin-sorting machines, coin-counting or wrapping machines, pencil-sharpening machines, perforating or stapling machines) [other than Braille typewriters
• Automatic goods-vending machines (for example, postage stamps, cigarette, food or beverage machines), including money changing machines
• Machinery for preparing or making up tobacco, not specified or included elsewhere in this chapter
• Passenger boarding bridges of a kind used in airports
• Transmission shafts (including camshafts and crank shafts) and cranks; bearing housings and plain shaft bearings; gears and gearing; ball or roller screws; gearboxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints)
• Gaskets and similar joints of metal sheeting combined with other material or of two or more layers of metal; sets or assortments of gaskets and similar joints, dissimilar in composition, put up in pouches, envelopes or similar packings; mechanical seals

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