HSN Code and GST Rates for Pencils, Sanitary Towels, and Lighters

HSN Code and GST Rates for Pencils, Sanitary Towels, and Lighters. The implementation of the Goods and Services Tax (GST) in India on July 1, 2017, brought about a significant change in the indirect tax structure. It subsumed multiple indirect taxes into a single, unified tax, aiming to simplify the tax regime and create a common national market. An important aspect of the GST system is the Harmonized System of Nomenclature (HSN) code, which is used to classify goods for taxation purposes. Knowing about the HSN codes and the corresponding GST rates for specific products is essential for businesses, manufacturers, and consumers alike. This article delves into the HSN codes and GST rates applicable to pencils, sanitary towels, and lighters in India.  
What are HSN Codes?
The Harmonized System of Nomenclature (HSN) is a six-digit code developed by the World Customs Organization (WCO) to classify goods traded internationally. India has adopted a more detailed eight-digit HSN code for classifying goods under GST. These codes help in the systematic classification of goods, making it easier to determine the applicable GST rate, calculate tax liabilities, and comply with regulations. The HSN code ensures uniformity in the classification of goods across different tax jurisdictions, reducing ambiguities and facilitating international trade.  
GST Rate Structure in India
The GST in India follows a multi-tiered rate structure, with different goods and services being taxed at varying rates. The current GST rates are 0%, 5%, 12%, 18%, and 28%. Essential goods and services, as well as items of basic necessity, often fall under the lower tax brackets or are exempt from GST. Conversely, luxury goods and items considered less essential are typically taxed at higher rates. The GST Council, comprising representatives from the central and state governments, is responsible for deciding and revising the GST rates for various goods and services.  
HSN Code and GST Rate for Pencils
Pencils, a common stationery item used by students, artists, and professionals, are classified under Chapter 96 of the HSN code, which covers "Miscellaneous manufactured articles." Specifically, HSN code 9609 is designated for "Pencils (including propelling or sliding pencils), crayons, pastels, drawing charcoals, writing or drawing chalks and tailor's chalks."  
Under the GST regime, pencils attract a GST rate of 12%. This rate applies to all types of pencils, including graphite pencils, colored pencils, propelling pencils, and mechanical pencils. The 12% GST rate falls under Schedule II of the GST rate structure, which includes goods that are considered neither essential nor luxury items.  
It's important to note that slate pencils and chalk sticks fall under a different HSN code, 96091000 and 96092000 respectively, and currently attract a Nil GST rate. This exemption likely considers their use primarily in educational settings and their affordability.
HSN Code and GST Rate for Sanitary Towels
Sanitary towels, also known as sanitary pads or napkins, are essential hygiene products for women. Initially, under the GST regime implemented in 2017, sanitary towels were taxed at 12%, which drew considerable criticism from various sections of society advocating for tax exemption on these essential items.  
Recognizing the necessity of making these products affordable and accessible, the GST Council, in a significant move, decided to exempt sanitary towels from GST. Consequently, the current GST rate for sanitary towels (pads) falling under HSN code 9619 is Nil (0%). The specific description under this HSN code includes "Sanitary towels (pads) and tampons, napkins and napkin liners for babies and similar articles, of any material."
However, it's important to note that certain related products under the same broader HSN code might attract different GST rates. For instance, napkins and napkin liners for babies and clinical diapers under specific sub-classifications (e.g., 96190030, 96190040, 96190090 for "others") attract a GST rate of 12%. This distinction highlights the importance of accurately classifying the specific type of product under the correct sub-HSN code. 
HSN Code and GST Rate for Lighters
Lighters, commonly used for lighting cigarettes, cigars, or gas stoves, are classified under Chapter 96 of the HSN code, specifically under HSN code 9613, which covers "Cigarette lighters and other lighters, whether or not mechanical or electrical, and parts thereof other than flints or wicks."  
The applicable GST rate for lighters is 28%. This high tax rate places lighters in the highest GST bracket, which typically includes luxury goods and items considered non-essential or potentially harmful. The 28% rate applies to various types of lighters, including disposable lighters, refillable lighters, gas lighters, and electric lighters.
It's crucial to note the exclusion of "flints or wicks" from this HSN code. While the GST rate for complete lighters is 28%, the GST rate for parts like flints and wicks might fall under a different HSN code and potentially a different GST rate. Generally, parts of lighters, other than flints and wicks, are also taxed at 18%. This distinction is important for businesses involved in the manufacturing or trading of lighter components.  
Conclusion
Knowing about the HSN codes and the corresponding GST rates for pencils, sanitary towels, and lighters is vital for ensuring tax compliance and accurate pricing. While pencils are taxed at 12%, sanitary towels are exempt from GST, reflecting their status as an essential hygiene product. Conversely, lighters attract the highest GST rate of 28%, categorizing them as non-essential goods. Businesses dealing with these products must accurately classify them under the correct HSN codes to apply the appropriate GST rates and avoid penalties. Consumers, too, can benefit from this knowledge to understand the tax component in the prices they pay. The GST framework, with its detailed HSN classification, aims to bring clarity and uniformity to the taxation of goods and services across India.
In case of any help, you can connect with Compliance Calendar LLP Experts through email at info@ccoffice.in or Call/Whatsapp at +91 9988424211.
Frequently Asked Questions (FAQs)
Q1. What is the HSN code for pencils, and what is the applicable GST rate?
Ans. The HSN code for pencils, including graphite pencils, colored pencils, propelling pencils, and mechanical pencils, is 9609. Under the GST regime, all types of pencils attract a 12% GST rate as they fall under Schedule II of the GST rate structure.
Q2. Are sanitary towels (pads) subject to GST in India?
Ans. No, sanitary towels (pads) are currently exempt from GST. Initially taxed at 12%, the GST Council decided to exempt these essential hygiene products, making their GST rate 0% under HSN code 9619.
Q3. What is the GST rate for lighters in India, and which HSN code do they fall under?
Ans. Lighters are classified under HSN code 9613, which includes cigarette lighters, gas lighters, and electric lighters. They attract a GST rate of 28%, placing them in the highest tax bracket designated for luxury or non-essential items.
Q4. Do slate pencils and chalk sticks attract GST?
Ans. No, slate pencils (HSN 96091000) and chalk sticks (HSN 96092000) are currently exempt from GST, primarily considering their usage in educational settings.
Q5. Are parts of lighters taxed at the same rate as complete lighters?
Ans. No, complete lighters attract a GST rate of 28%, while parts of lighters, excluding flints and wicks, are generally taxed at 18%. Flints and wicks fall under different HSN classifications and may have different GST rates.

The implementation of the Goods and Services Tax (GST) in India on July 1, 2017, brought about a significant change in the indirect tax structure. It subsumed multiple indirect taxes into a single, unified tax, aiming to simplify the tax regime and create a common national market. An important aspect of the GST system is the Harmonized System of Nomenclature (HSN) code, which is used to classify goods for taxation purposes. Knowing about the HSN codes and the corresponding GST rates for specific products is essential for businesses, manufacturers, and consumers alike. This article delves into the HSN codes and GST rates applicable to pencils, sanitary towels, and lighters in India.

What are HSN Codes?

The Harmonized System of Nomenclature (HSN) is a six-digit code developed by the World Customs Organization (WCO) to classify goods traded internationally. India has adopted a more detailed eight-digit HSN code for classifying goods under GST. These codes help in the systematic classification of goods, making it easier to determine the applicable GST rate, calculate tax liabilities, and comply with regulations. The HSN code ensures uniformity in the classification of goods across different tax jurisdictions, reducing ambiguities and facilitating international trade.

GST Rate Structure in India

The GST in India follows a multi-tiered rate structure, with different goods and services being taxed at varying rates. The current GST rates are 0%, 5%, 12%, 18%, and 28%. Essential goods and services, as well as items of basic necessity, often fall under the lower tax brackets or are exempt from GST. Conversely, luxury goods and items considered less essential are typically taxed at higher rates. The GST Council, comprising representatives from the central and state governments, is responsible for deciding and revising the GST rates for various goods and services.

HSN Code and GST Rate for Pencils

Pencils, a common stationery item used by students, artists, and professionals, are classified under Chapter 96 of the HSN code, which covers "Miscellaneous manufactured articles." Specifically, HSN code 9609 is designated for "Pencils (including propelling or sliding pencils), crayons, pastels, drawing charcoals, writing or drawing chalks and tailor's chalks."

Under the GST regime, pencils attract a GST rate of 12%. This rate applies to all types of pencils, including graphite pencils, colored pencils, propelling pencils, and mechanical pencils. The 12% GST rate falls under Schedule II of the GST rate structure, which includes goods that are considered neither essential nor luxury items.

It's important to note that slate pencils and chalk sticks fall under a different HSN code, 96091000 and 96092000 respectively, and currently attract a Nil GST rate. This exemption likely considers their use primarily in educational settings and their affordability.

HSN Code and GST Rate for Sanitary Towels

Sanitary towels, also known as sanitary pads or napkins, are essential hygiene products for women. Initially, under the GST regime implemented in 2017, sanitary towels were taxed at 12%, which drew considerable criticism from various sections of society advocating for tax exemption on these essential items.

Recognizing the necessity of making these products affordable and accessible, the GST Council, in a significant move, decided to exempt sanitary towels from GST. Consequently, the current GST rate for sanitary towels (pads) falling under HSN code 9619 is Nil (0%). The specific description under this HSN code includes "Sanitary towels (pads) and tampons, napkins and napkin liners for babies and similar articles, of any material."

However, it's important to note that certain related products under the same broader HSN code might attract different GST rates. For instance, napkins and napkin liners for babies and clinical diapers under specific sub-classifications (e.g., 96190030, 96190040, 96190090 for "others") attract a GST rate of 12%. This distinction highlights the importance of accurately classifying the specific type of product under the correct sub-HSN code.

HSN Code and GST Rate for Lighters

Lighters, commonly used for lighting cigarettes, cigars, or gas stoves, are classified under Chapter 96 of the HSN code, specifically under HSN code 9613, which covers "Cigarette lighters and other lighters, whether or not mechanical or electrical, and parts thereof other than flints or wicks."

The applicable GST rate for lighters is 28%. This high tax rate places lighters in the highest GST bracket, which typically includes luxury goods and items considered non-essential or potentially harmful. The 28% rate applies to various types of lighters, including disposable lighters, refillable lighters, gas lighters, and electric lighters.

It's crucial to note the exclusion of "flints or wicks" from this HSN code. While the GST rate for complete lighters is 28%, the GST rate for parts like flints and wicks might fall under a different HSN code and potentially a different GST rate. Generally, parts of lighters, other than flints and wicks, are also taxed at 18%. This distinction is important for businesses involved in the manufacturing or trading of lighter components.

Conclusion

Knowing about the HSN codes and the corresponding GST rates for pencils, sanitary towels, and lighters is vital for ensuring tax compliance and accurate pricing. While pencils are taxed at 12%, sanitary towels are exempt from GST, reflecting their status as an essential hygiene product. Conversely, lighters attract the highest GST rate of 28%, categorizing them as non-essential goods. Businesses dealing with these products must accurately classify them under the correct HSN codes to apply the appropriate GST rates and avoid penalties. Consumers, too, can benefit from this knowledge to understand the tax component in the prices they pay. The GST framework, with its detailed HSN classification, aims to bring clarity and uniformity to the taxation of goods and services across India.

In case of any help, you can connect with Compliance Calendar LLP Experts through email at info@ccoffice.in or Call/Whatsapp at +91 9988424211.

Frequently Asked Questions (FAQs)

Q1. What is the HSN code for pencils, and what is the applicable GST rate?

Ans. The HSN code for pencils, including graphite pencils, colored pencils, propelling pencils, and mechanical pencils, is 9609. Under the GST regime, all types of pencils attract a 12% GST rate as they fall under Schedule II of the GST rate structure.

Q2. Are sanitary towels (pads) subject to GST in India?

Ans. No, sanitary towels (pads) are currently exempt from GST. Initially taxed at 12%, the GST Council decided to exempt these essential hygiene products, making their GST rate 0% under HSN code 9619.

Q3. What is the GST rate for lighters in India, and which HSN code do they fall under?

Ans. Lighters are classified under HSN code 9613, which includes cigarette lighters, gas lighters, and electric lighters. They attract a GST rate of 28%, placing them in the highest tax bracket designated for luxury or non-essential items.

Q4. Do slate pencils and chalk sticks attract GST?

Ans. No, slate pencils (HSN 96091000) and chalk sticks (HSN 96092000) are currently exempt from GST, primarily considering their usage in educational settings.

Q5. Are parts of lighters taxed at the same rate as complete lighters?

Ans. No, complete lighters attract a GST rate of 28%, while parts of lighters, excluding flints and wicks, are generally taxed at 18%. Flints and wicks fall under different HSN classifications and may have different GST rates.