GST HSN Code for Paints, Hardware & Flooring Items Explained

HSN Code for Paints: Find the Right One! [Updated]

GST HSN Code for Paints, Hardware & Flooring Items Explained

Whether you’re a hardware store owner managing inventory, a contractor issuing invoices, or a homeowner embarking on a renovation, navigating the complexities of GST can be a daunting task. One of the most common points of confusion is correctly identifying the tax codes for various building materials. Getting this wrong can lead to compliance issues, incorrect tax payments, and even penalties. This is where understanding the HSN code for paints, hardware, and flooring becomes absolutely essential. For those in the construction industry, a detailed guide on the GST Rate & HSN Code for Building Contractors and Developers can be particularly useful. Knowing the correct Harmonized System of Nomenclature (HSN) code is the first step towards accurate GST invoicing, seamless input tax credit (ITC) claims, and a hassle-free business operation. This comprehensive guide will simplify the process by breaking down the specific HSN codes and GST rates for these key categories, helping you master the essentials of understanding HSN code for paints India and related products.

What is an HSN Code and Why is it Important in India?

Before diving into specific product categories, it’s crucial to understand what an HSN code is and its significance in India’s GST framework. The Harmonized System of Nomenclature, or HSN, is a globally recognized system for classifying goods. It uses a systematic 8-digit code to categorize products, creating a uniform classification method that simplifies international trade and domestic taxation. For GST purposes in India, this code helps in identifying the applicable tax rate for a specific product, ensuring consistency across the country. The structure is hierarchical: the first two digits represent the Chapter, the next two represent the Heading, the following two are the Sub-heading, and the final two digits specify the Tariff Item for further detailed classification. Under the current GST regulations, it is mandatory for businesses with an annual aggregate turnover of more than ₹5 crore to use a 6-digit HSN code on their tax invoices. For a complete overview, our Understanding GST Invoicing: A Detailed Guide can provide more context. This systematic approach, known as the HSN classification for hardware and flooring India, is not just a procedural requirement but a cornerstone of the GST system that aids in data collection, automates tax filings, and prevents misclassification of goods. For detailed rules, you can always refer to the official GST Portal.

Detailed Breakdown: The Official HSN Code for Paints and Varnishes

The HSN code for paints and related products primarily falls under Chapter 32 of the HSN system. This chapter covers tanning and dyeing extracts, paints, varnishes, putty, and inks. However, different types of paints and surface preparations have distinct codes and, in some cases, different GST rates, making it vital for sellers and buyers to classify them correctly. For instance, the general paint HSN code in India attracts an 18% GST rate, but preparatory items like wall putty are taxed at a higher slab of 28%. Misclassifying a high-value consignment can lead to significant tax discrepancies. To avoid any confusion, here is a clear breakdown of the most common HSN codes for paints and varnishes.

Product Description HSN Chapter/Heading HSN Code GST Rate
Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed/dissolved in a non-aqueous medium Chapter 32 3208 18%
Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed/dissolved in an aqueous medium (e.g., distempers, acrylic emulsions) Chapter 32 3209 18%
Other paints and varnishes; prepared water pigments used for finishing leather Chapter 32 3210 18%
Glaziers’ putty, grafting putty, resin cements, caulking compounds and other mastics; painters’ fillings (e.g., Wall Putty) Chapter 32 3214 28%
Pigments (including metallic powders and flakes) dispersed in non-aqueous media, in liquid or paste form, of a kind used in the manufacture of paints Chapter 32 3212 18%

Understanding Different Types of Paints Under GST

It’s important to understand the subtle distinctions within Chapter 32 that influence the HSN code. The primary classification for paints is based on their medium: HSN code 3208 is used for solvent-based paints like enamels and lacquers, while HSN code 3209 applies to water-based paints such as acrylic emulsions and distempers. Both of these categories currently fall under the 18% GST slab. The most notable exception is wall putty and other fillers, which are classified under HSN code 3214. These products are considered “surfacing preparations” rather than primary coatings and are taxed at the highest GST slab of 28%. This distinction is critical for retailers and contractors who deal in both paints and preparatory materials, as incorrect invoicing for putty can lead to significant underpayment of tax and subsequent penalties.

A Guide to the HSN Code for Hardware Items in India

Unlike paints, which are neatly categorized under a single chapter, the HSN code for hardware items India is spread across several chapters of the HSN schedule. This is because hardware is classified based on the material it is made from (e.g., iron, steel, brass) and its function. The most common chapters for hardware are Chapter 73 (Articles of Iron or Steel), Chapter 82 (Tools, Implements, Cutlery), and Chapter 83 (Miscellaneous Articles of Base Metal). This diversity means that a typical hardware store’s inventory will feature dozens of different HSN codes. For example, nuts and bolts made of steel have a different classification than brass hinges or aluminium handles. Understanding the correct hardware HSN code in India is therefore a matter of paying close attention to product details. Most standard hardware items, however, fall under a uniform GST rate of 18%.

Product Description HSN Chapter/Heading Common HSN Code(s) GST Rate
Nuts, Bolts, Screws, Washers, and similar articles (of iron or steel) Chapter 73 7318 18%
Locks and Padlocks (of base metal) Chapter 83 8301 18%
Hinges, Handles, Brackets, and similar Fixtures (for furniture, doors, windows) Chapter 83 8302 18%
Nails, Tacks, Drawing pins, and Staples (of iron or steel) Chapter 73 7317 18%
Hand Tools (e.g., saws, hammers, screwdrivers, wrenches) Chapter 82 8202, 8204, 8205 18%

Key Considerations for Hardware Retailers

For hardware retailers and suppliers, managing GST compliance requires meticulous inventory management. The most critical factor to consider is the material composition of the product. While most iron, steel, and base metal hardware falls under the 18% GST slab, specific items made of other metals or for specialized uses might have different codes. It is essential to segregate inventory based on HSN codes and ensure that your billing software is programmed to apply the correct code for each item sold. A good practice is to source HSN codes directly from the invoices of reputable manufacturers and distributors. This not only ensures accuracy but also makes it easier to claim Input Tax Credit, as the HSN codes on your purchase and sales invoices will match perfectly, creating a clean and verifiable audit trail.

Navigating the HSN Code for Flooring Products in India

The HSN code for flooring products India is another diverse category, with classifications depending heavily on the material used in manufacturing. From natural stones like marble and granite to man-made products like ceramic tiles and vinyl flooring, each has a specific place in the HSN schedule. The majority of common flooring materials, including ceramic tiles, vitrified tiles, marble, granite, and wooden flooring, are taxed at a GST rate of 18%. This uniformity simplifies things for retailers dealing in these popular categories. However, textile floor coverings like carpets have a more complex structure with varying rates (5% or 12%) depending on their value and material. Therefore, accurately identifying the flooring HSN code in India is crucial for suppliers and contractors to ensure they are charging and paying the correct amount of tax.

Product Description HSN Chapter/Heading Common HSN Code GST Rate
Ceramic Tiles (Glazed and Unglazed) Chapter 69 6907 18%
Vitrified Tiles Chapter 69 6907 18%
Marble, Granite, and Travertine Blocks/Slabs Chapter 68 6802 18%
Wooden Flooring (Laminated, Parquet Panels) Chapter 44 4409, 4412 18%
Carpets and other textile floor coverings Chapter 57 5701-5705 5% / 12%
Linoleum, Vinyl, and other plastic floor coverings Chapter 39 3918 18%

How to Find the Correct HSN Code and Avoid Penalties

Ensuring you use the correct HSN code is a non-negotiable part of GST compliance. Errors can lead to serious consequences, so it’s wise to be proactive and diligent. Here are four practical steps you can take to find the right code and stay on the right side of the law:

  • Use the Official GST Portal: The government’s GST Portal has a built-in search tool. You can search for HSN codes by entering a description of the goods, which is the most reliable and direct way to find the correct classification.
  • Check Your Supplier’s Invoice: When you purchase goods, the HSN code should be mentioned on the tax invoice provided by your supplier. This is a great reference point, especially for retailers, as it helps maintain consistency in the supply chain.
  • Understand the Consequences of Errors: Mentioning the wrong HSN code can lead to several problems. The most immediate issue is charging the incorrect GST rate, leading to either overpayment or underpayment of taxes. Furthermore, it can cause the buyer’s Input Tax Credit (ITC) claim to be rejected. In more serious cases, it can attract a penalty of up to ₹50,000 (₹25,000 for CGST and ₹25,000 for SGST) under Section 125 of the CGST Act for incorrect invoicing.
  • When in Doubt, Consult an Expert: The HSN system has thousands of codes and can be complex. If you are ever unsure about the classification of a particular product, it is always best to consult a tax professional.

Conclusion: Simplify Your GST with the Right HSN Codes

In the world of GST, details matter. Correctly identifying and using the HSN code for paints, hardware, and flooring is not just a compliance requirement; it’s a fundamental aspect of running a smooth and transparent business. It ensures you are invoicing correctly, claiming accurate Input Tax Credit, and avoiding any potential disputes or penalties from the tax authorities. By using the tables and tips in this guide, you can build a strong foundation for your GST compliance. For a broader perspective on other materials, you can also consult the HSN Code List for Construction Materials 2025 – Cement, Steel, Bricks & Tiles. It leads to better inventory management, accurate financial reporting, and ultimately, peace of mind.

Feeling overwhelmed with GST codes and filings? Let the experts at TaxRobo handle it for you. From accurate HSN classification to timely GST return filing, we’ve got you covered. Contact us today for a consultation!

Frequently Asked Questions (FAQs)

Q1: Is the HSN code the same for all states in India?

Answer: Yes, the HSN code is part of a standardized system used across India for GST. The tax rates will be split into CGST (Central GST) and SGST (State GST) for intra-state transactions or levied as IGST (Integrated GST) for inter-state transactions, but the HSN code for the product itself remains the same regardless of the state.

Q2: What happens if I use the wrong HSN code on my invoice?

Answer: Using an incorrect HSN code can lead to several issues. These include charging the wrong GST rate (leading to tax differences), rejection of Input Tax Credit (ITC) for the recipient of the goods, and potential demand notices or penalties from the tax department under Section 125 of the CGST Act for non-compliance.

Q3: As a small painter, do I need to mention the HSN code for my services?

Answer: This is an important distinction. Painting services fall under the Services Accounting Code (SAC), not HSN. The SAC for painting services is typically 995434. However, if you are also selling the paint to your client as part of a composite supply, you must use the correct HSN code for paints (e.g., 3208, 3209) on the invoice for the goods portion of the transaction.

Q4: Where can I find the complete list of HSN codes?

Answer: The most reliable and official source for the complete HSN code list is the Customs Tariff Act, 1975. This is available on the website of the Central Board of Indirect Taxes and Customs (CBIC). For quick searches, you can also use the HSN search functionality available on the official GST Portal.

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