Metal Drilling Machines GST Rates & HSN Code 8459 Metal drilling machines are the backbone of modern manufacturing—they help shape everything from car parts to big industrial equipment. Known for their precision and power, these machines fall under HSN code 8459, which makes billing and GST management easier for businesses. Whether you're making machines or selling them, knowing the right GST rates can save you money and keep your business GST-compliant with zero stress.
What is HSN Code 8459? HSN Code 8459 classifies metal drilling machines for GST and trade purposes. It covers various types of drilling, boring, milling, and tapping machines designed for working with metal. This code helps businesses stay organized during invoicing and ensures the correct GST rate is applied when buying or selling these machines.
How GST is Applied to Metal Drilling Machines HSN Code Description GST Rate(%) 8459 General heading for machine tools for drilling, boring, milling, etc. 18% 84591000 Way-type unit head machines 18% 84592100 Numerically controlled drilling machines 18% 84592910-84592990 Other types of drilling machines( bench, pillar, radial, deep hole, multi-head, etc) 18% 84593100 NC boring-milling machines 18% 84593910-84593990 Other boring-milling machines(vertically turning/boring, etc) 18% 84594010-84594990 Other boring machines include jig boring, fine boring(HIV), etc, 18% 84595110-84595990 Milling machines-knee type(NC& others: horizontal, vertical, Ram type), etc 18% 84596110-84596930 Other milling machines (piano, bed type), etc 18%
You Can Also Read: Machinery HSN Code : Different types & GST Rate Applicable
GST Rate Applicability for Different Types of Metal Drilling Machines General GST Rate for Metal Drilling Machines 1. Most metal drilling machines fall under HSN code 8459.
Types Covered Under HSN 8459 1. Machines for drilling, boring, milling, or threading metal.
2. Includes horizontal/vertical drilling machines, radial drilling machines, etc.
Machines with CNC (Computer Numerical Control) 1. These are automated machines using computer control.
2. CNC metal drilling machines also fall under HSN 8459 and attract 18% GST.
Manually Operated Drilling Machines 1. Even if they are not CNC-based, manual machines for metal drilling also come under the same HSN.
2. The GST rate remains at 18%.
Multi-Function Machines (Drilling + Milling + Turning) 1. If a single machine performs multiple metalwork operations, it still falls under the same GST slab.
2. GST is applicable: 18% under HSN 8459.
Portable or Handheld Metal Drilling Tools 1. These are not covered under HSN 8459 but usually fall under HSN 8467.
2. Applicable GST rate: 18%.
Used or Second-Hand Drilling Machines The GST rate is the same (18%), but tax is calculated on the transaction value (selling price).
Job Work Services Involving Drilling of Metal If a company only provides metal drilling as a service (not selling the machine), GST is usually 12% under the job work classification.
Exemptions 1. There are no specific exemptions for drilling machines used for metal.
2. All are taxable under the GST regime.
Input Tax Credit (ITC) Businesses purchasing metal drilling machines can claim ITC on the 18% GST paid if used for taxable business activities.
Why HSN Code and GST Rate Knowledge is Crucial for Traders and Manufacturers Correct Tax Calculation 1. Knowing the right HSN code and GST rate helps in charging the correct tax on products.
2. Avoids undercharging or overcharging customers.
Avoids Penalties and Legal Issues Using the wrong HSN code or GST rate can lead to notices, penalties, or audits by GST authorities.
Smooth Filing of GST Returns Correct HSN codes make it easier to file GST returns accurately without errors.
Input Tax Credit (ITC) Claims To claim an Input Tax Credit, the correct HSN code and tax rate must match on both supplier and buyer invoices.
Builds Trust with Buyers Using the correct codes shows professionalism and transparency, which builds trust with clients.
Prevents Loss of Revenue Wrong tax rates can lead to losses — either paying extra tax or getting less profit than expected.
Required in E-Invoicing & E-Way Bills For businesses crossing turnover limits, HSN codes are mandatory in e-invoices and e-way bills.
Helps in Product Classification HSN codes help classify products correctly, especially when dealing with multiple goods.
Global Standardization HSN is an international system, making it useful for import/export businesses too.
Faster Problem-Solving in GST Queries When businesses face GST-related issues, having the correct HSN and rate info helps resolve them quickly and smoothly.
Common Mistakes to Avoid While Billing Metal Drilling Machines Using the Wrong HSN Code Applying an incorrect HSN code can lead to wrong GST calculations and attract penalties.
Charging Incorrect GST Rate Different metal drilling machines may have different GST rates. Always check the correct rate before billing.
Not Mentioning Complete Product Details Bills must include full product specifications, like type, model, and features. Vague descriptions can cause confusion or disputes.
Missing Serial Numbers or Machine IDs For high-value machines, not mentioning serial numbers may affect warranty and tracking.
Ignoring the SAC Code in Case of Services If installation or servicing is included, make sure to use the right SAC code for services in the same invoice (if applicable).
Not Updating the GSTIN of the Buyer Using the wrong or outdated GSTIN of the buyer may result in Input Tax Credit issues.
Skipping Delivery and Transport Details Not adding transport mode, delivery address, or e-way bill info can delay logistics or violate compliance rules.
Wrong Tax Split (CGST/SGST vs IGST) Not identifying whether the sale is intra-state or inter-state can lead to the wrong tax application (IGST vs CGST+SGST).
Not Including Warranty or AMC Info If a warranty or AMC is offered, it should be clearly mentioned in the bill to avoid future conflicts.
Forgetting to Sign or Stamp the Invoice Unsigned or unstamped invoices are considered incomplete, especially for B2B transactions.
Conclusion Knowing the right GST rate and HSN code for metal drilling machines isn’t just about following rules—it’s about running your business with confidence and clarity. Whether you trade, manufacture, or offer services, using the correct codes keeps your billing smooth, tax filing easy, and helps you avoid costly errors. These small details go a long way in building trust with clients and setting up your business for steady, long-term growth. When your GST is sorted, everything else flows better too. FAQ’s- 1. What is the GST rate for metal drilling machines? The GST rate is 18% for most metal drilling machines under HSN code 8459.
2. Are portable drilling machines covered under the same HSN code? No, portable or handheld tools usually fall under HSN 8467, but the GST rate remains 18%.
3. Can I claim an Input Tax Credit on these machines? Yes, if the machine is used for taxable business activities, ITC can be claimed.
4. What happens if I use the wrong HSN code on an invoice? It may lead to GST mismatches, penalties, or rejection of ITC claims during audits.
5. Is GST applicable on second-hand drilling machines? Yes, 18% GST applies to second-hand machines' transaction value.
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