Understanding GST Rates and HSN Code 7018 for Glass Beads and Imitation Pearls In international trade, goods are classified through a standardized system known as the Harmonized System of Nomenclature (HSN). The use of HSN codes for taxation in India under the Goods and Services Tax (GST) policy has simplified tax collection by ensuring proper categorization in all states. This article breaks down HSN code 7018, which covers devices such as glass beads and imitation pearls, and explains the GST rates applicable to it.
Overview of HSN Code 7018 HSN code 7018 forms a part of Chapter 70 on glass and products made of glass. This code has a specific description that includes:
Glass microspheres not exceeding 1 mm in diameter, statuettes and other ornaments of lamp worked glass other than imitation jewelry, glass eyes other than prosthetic articles, and articles thereof other than imitation jewelry, imitation precious or semi-precious stones, and similar glass small wares. This general classification covers different types of ornamental and practical glassware, and excludes imitation jewelry and prosthetic devices.
Also Read: Top Artificial/Imitation Jewellery Manufacturers in India
Detailed Breakdown of HSN Code 7018 For better understanding, HSN code 7018 is divided further and every division has a unique GST rate pertaining to itself:
HSN Code Description Effective Date Rate Revision 7018 Glass Beads, Imitation Pearls, Imitation Precious Or Semi-Precious Stones And Similar Glass Smallwares, And Articles Thereof Other Than Imitation Jewellery, Glass Eyes Other Than Prosthetic Articles; Statuettes And Other Ornaments Of Lamp-Worked Glass, Ot 01/07/2017 5% 18% 7018 Glass Beads, Imitation Pearls, Imitation Precious Or Semi-Precious Stones And Similar Glass Smallwares, And Articles Thereof Other Than Imitation Jewellery, Glass Eyes Other Than Prosthetic Articles; Statuettes And Other Ornaments Of Lamp-Worked Glass, Ot 01/07/2017 0 701810 Glass Beads, Imitation Pearls, Imitation Precious Or 01/07/2017 5% 18% 70181010 Glass Beads, Imitation Pearls, Imitation Precious Or Semi-Precious Stones And Similar Glass Smallwares, And Articles Thereof Other Than Imitation Jewellery, Glass Eyes Other Than Prosthetic Articles; Statuettes And Other Ornaments Of Lamp-Worked Glass, Ot 01/07/2017 5% 18% 70181020 Glass Beads, Imitation Pearls, Imitation Precious Or Semi-Precious Stones And Similar Glass Smallwares, And Articles Thereof Other Than Imitation Jewellery, Glass Eyes Other Than Prosthetic Articles; Statuettes And Other Ornaments Of Lamp-Worked Glass, Ot 01/07/2017 5% 18% 70181090 Glass Beads, Imitation Pearls, Imitation Precious Or Semi-Precious Stones And Similar Glass Smallwares, And Articles Thereof Other Than Imitation Jewellery, Glass Eyes Other Than Prosthetic Articles; Statuettes And Other Ornaments Of Lamp-Worked Glass, Ot 01/07/2017 5% 18% 70182000 Glass Beads, Imitation Pearls, Imitation Precious Or Semi-Precious Stones And Similar Glass Smallwares, And Articles Thereof Other Than Imitation Jewellery, Glass Eyes Other Than Prosthetic Articles; Statuettes And Other Ornaments Of Lamp-Worked Glass, Ot 01/07/2017 5% 18% 701890 Other 01/07/2017 5% 18% 70189010 Glass Beads, Imitation Pearls, Imitation Precious Or Semi-Precious Stones And Similar Glass Smallwares, And Articles Thereof Other Than Imitation Jewellery, Glass Eyes Other Than Prosthetic Articles; Statuettes And Other Ornaments Of Lamp-Worked Glass, Ot 01/07/2017 5% 18% 70189090 Glass Beads, Imitation Pearls, Imitation Precious Or Semi-Precious Stones And Similar Glass Smallwares, And Articles Thereof Other Than Imitation Jewellery, Glass Eyes Other Than Prosthetic Articles; Statuettes And Other Ornaments Of Lamp-Worked Glass, Ot 1/7 5% 18%
Note: You should keep in mind that GST is updated periodically. For more precise information, always refer to government GST portals or financial practitioners.
GST Rates Explained The items in HSN code 7018 have different GST rates depending on the item category: HSN Code Description GST Rate 701810 Glass beads, imitation pearls, imitation precious or semi-precious stones, and similar glass smallwares, and articles thereof 18% -70181010 Bangles Exempt -70181020 Beads 5% -70181090 Others 18% 70182000 Glass microspheres not exceeding 1 mm in diameter 18% 701890 Other: 18% -70189010 Glass statues 12% -70189090 Other articles 18%
1. Bangles made of Glass (HSN 70181010): These items have no GST imposed upon them due to their cultural relevance and heavy usage for conventional jewelry.
2. Beads (HSN 70181020): These are subjected to a reduced GST of 5% to help craftsmen and cottage industries involved in bead making.
3. Other (HSN 70181090, 70182000, 70189090): Items such as glass beads, imitation pearls, glass microspheres and other non articles fall under GST item category and have standard GST of 18%.
4. Glass Statues (HSN 70189010): These items are signified with Blass Statutes and are taxed upon 12% GST A related to each sphere or field of illumination.
Suggested Read: Best Artificial Jewellery Brands in India
Why Accurate HSN Classification is Important Customers are obliged to give accurate HSN classification for sound business management in relation to:
1. Ensure Compliance: Using correct HSN code helps avoid potential legal conflicts and fines that arise from using the wrong code which is linked to legal frameworks.
2. Tax Liability Calculation: Classification permits businesses to charge, collect, and pay the correct GST amount without any discrepancies.
3. Seamless Business Management: Correct assignment of HSN codes also helps in the proper and timely submission of GST returns and reduces the chances for disagreements in the tax audit.
Conclusion Businesses that trade in glass beads, imitation pearls and other categories products will find that learning about the application of relevant GST rates and different HSN classifications will be crucial. The same principle applies to HSN code 7018 and its specific subcategories. These businesses are able to meet their obligations, precise limits, and foster transparent business activities. Official sources of information on GST regulations and tax experts can provide further guidance on this topic.
FAQs 1. What does the 7018 HSN code stand for? The 7018 HSN code relates to glass imitation pearls and beads and other glassware but doesn’t cover imitation jewelry and prosthetic products.
2. Is there GST for the 7018 HSN code? The answer is yes. However, the rate differs across glass items; 0 for bangles attracts 5% for beads and 18% for the rest, including imitation pearls and glass microspheres.
3. What GST is charged on glass beads under HSN Code 7018? The HSN code for glass beads is 70181020 and it has a GST charge of 5 percent.
4. Are glass bangles taxable under GST? No, under HSN 70181010 glass bangles GST rate is 0% (exempted) from GST. 5. How can businesses classify imitation pearls under the 7018 HSN code?
Imitation pearls fall under 701810 and are generally taxed at 18% GST unless specified otherwise.
5. What is the GST rate for glass microspheres under HSN 7018? Glass microspheres (not exceeding 1 mm in diameter) under HSN 70182000 attract 18% GST.
People Also Ask 1. What is HSN Code 7018 under GST? HSN Code 7018 covers glass beads, imitation pearls, glass microspheres, ornaments, and other glassware , excluding imitation jewellery and prosthetic articles. It falls under Chapter 70 – Glass and Glassware in the GST classification.
2. What is the GST rate for glass beads and imitation pearls under HSN 7018? Under HSN 7018 , glass beads (70181020) attract 5% GST , while imitation pearls and other glassware are generally taxed at 18% GST depending on their subcategory.
3. Are glass bangles taxable under GST? No. Glass bangles (HSN 70181010) are exempt from GST (0%) due to their traditional and cultural significance in India.
4. What is the GST rate for glass statues and microspheres under HSN 7018? Glass statues (HSN 70189010) are taxed at 12% GST , while glass microspheres (HSN 70182000) attract 18% GST under the same classification.
5. Why is correct HSN classification important for glass and imitation products? Accurate HSN classification ensures proper GST rate application, helps avoid penalties, enables smooth return filing, and maintains transparency in business transactions.
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