Gaskets GST Rates and HSN Code 8484: Complete Guide

Gaskets form an important aspect of engineering, motor vehicle, and manufacturing uses. Their simplest purpose is to seal the space between two surfaces such that there shall not be any leakage of gases or liquids. In engines, pipelines, or heavy machines, gaskets provide operational efficiency and safety. According to the GST regime, all products have to be placed in the proper category using HSN (Harmonized System of Nomenclature) codes for taxation, and gaskets come under HSN code 8484.

Misclassification would invite penalty, interest, or even litigation upon tax audit. It is essential for manufacturers, suppliers, and traders trading in gaskets to know where gaskets fall under GST legislation. This article tries to encompass not just the GST rate that gaskets are subject to but also compliance conditions, main government notifications, and recent news. For real-time data and tax compliance solutions, companies can also visit resources from Swipe's GST Billing Blog.

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Understanding HSN Code 8484

HSN Code 8484 is particularly used to refer to "Gaskets and similar joints of metal sheeting combined with other material or of two or more layers of metal." The code is recognized globally and utilized in countries to harmonize the classification of products for taxation, customs, and trade.

In India, under GST, HSN codes use was made obligatory in order to make the process of classification clearer and avoid uncertainty. Companies whose turnover is more than specified thresholds (₹5 crore and above) must quote 6-digit HSN codes on the bills. Even those with lower turnover should at least use a 4-digit HSN code to ensure correct filing.

Using HSN 8484 ensures uniformity in tax treatment of gaskets. It covers metal gaskets, composite gaskets (rubber and metal combined), and even certain asbestos-based gaskets. Misclassification can cause delays in claiming input tax credit and may result in penalties. To stay compliant, businesses are encouraged to verify the latest list on the CBIC GST website.

GST Rates Applicable on Gaskets

Type of Gasket	GST Rate	HSN Code
Metallic gaskets	18%	8484
Rubber/composite gaskets	18%	8484
Asbestos gaskets	18%	8484

The applicable GST rate for gaskets classified under HSN Code 8484 is 18%. This includes metallic gaskets, rubber or composite gaskets, and even gasket kits sold as assemblies.

The 18% slab is standard for most industrial components, considering their essential but specialized nature. Businesses need to be aware that if a gasket is sold as part of another machine, the GST rate applicable could vary depending on the principal machine's classification.

For example, a gasket bundled with a car engine will attract the GST rate applicable to the engine or automobile if sold as part of the whole. For standalone sales, 18% is the rate. Keeping proper records and understanding bundled supply rules is key to preventing any GST disputes.

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Key Compliance Requirements for GST on Gaskets

For businesses trading or manufacturing gaskets, compliance involves multiple checkpoints:

Correct HSN Classification: Always list 8484 on invoices.

Invoice Accuracy: Ensure tax invoices mention the right GST rate (18%) and HSN code.

E-Way Bill Generation: For transportation over the prescribed limit (₹50,000), generate e-way bills correctly mentioning 8484.

GST Returns Filing: Report outward supplies in GSTR-1 and inward supplies in GSTR-3B accurately.

Input Tax Credit (ITC) Claims: Properly claim ITC on purchases by linking gaskets used in production or resale.

Maintaining organized documentation and staying updated on latest CBIC notifications will ensure businesses avoid late fees or penalties.

Government Notifications Related to HSN Code 8484

The government of India, by way of the Central Board of Indirect Taxes and Customs (CBIC), issues periodic notifications on GST rates and HSN codes. For HSN Code 8484, in particular, Notification No. 1/2017 – Central Tax (Rate) dated 28th June 2017 originally set the rate of 18% GST. Subsequent amendments or clarifications have maintained this rate.

Government circulars and updates emphasize proper classification and explain the treatment of composite supplies involving gaskets. For example:

Clarification Circular No. 126/45/2019–GST explained the treatment of parts sold along with machinery.

CBIC Updates frequently reinforce the need for businesses to adapt to any changes.

You can access the latest updates directly from the official CBIC GST Notifications page.

It is recommended to monitor these updates periodically or consult GST advisors to remain compliant.

Challenges in GST Compliance for Gasket Traders and Manufacturers

Though classification seems straightforward, practical challenges include:

Bundled Supplies: Difficulty in determining GST rates if gaskets are sold along with other equipment.

Material Composition Variations: Complex products made of different materials might confuse classification.

ITC Documentation: Errors in input claims can invite scrutiny from GST departments.

Awareness: Lack of knowledge about the need for 6-digit HSN usage above certain turnover limits.

Businesses can overcome these hurdles by training their invoicing teams, maintaining precise records, and consulting experts periodically.

FAQs

Q1. What is the GST rate applicable on gaskets?‍

The GST rate applicable on gaskets under HSN code 8484 is 18%.

Q2. Which HSN code is used for rubber gaskets?‍

Rubber gaskets are also classified under HSN Code 8484, attracting 18% GST.

Q3. Can a gasket be classified under machinery parts?‍

If sold as part of a complete machine, the gasket may adopt the GST classification of the principal machinery.

Q4. What happens if the wrong HSN code is used?‍

Incorrect HSN classification can lead to penalties, reversal of Input Tax Credit (ITC), and audit issues.

Q5. Where can I check the latest GST notifications?‍

You can check official updates on the CBIC GST Notifications page.

Conclusion

Gaskets are an essential component in industrial establishments, and their proper GST classification makes for smooth trade practices. Knowing HSN Code 8484, using the right 18% GST rate, and following government notifications can help businesses achieve smooth compliance. Always check the current tax guidelines, create correct e-way bills, and make GST filings error-free to prevent any unnecessary legal issues.
For more practical GST compliance tips, check out Swipe's blog.

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