Vacuum Flasks HSN Code and GST Rate - 9617 The classification and taxation for goods is based on India's Harmonized System of Nomenclature(HSN) and Goods and Services Tax(GST). Therefore, knowing the 9617 HSN code GST rate is a must.
Understanding HSN Code 9617
HSN is also an internationally accepted system of classification of goods, therefore uniform taxation can be levied on goods across the globe. HSN codes also help businesses file taxes with proper information about GST rates.
What Does HSN Code 9617 Represent? "Vacuum flasks and other vacuum vessels, complete with cases; parts thereof other than glass inners."
This class comprises various products for keeping liquids hot or cold, including thermos flasks, vacuum-insulated containers, etc. Lifestyles have made these products a common occurrence used in homes, offices, and outdoor activities making them a part of day-to-day lives.
Grouping by HSN code 9617 enables the tax system to ascertain that there is clarity and uniformity among the items for GST.
GST Rates for HSN Code 9617 There are four slabs of GST rates in India: 5%, 12%, 18%, and 28%. The relevant tariff rate for a product is determined according to its HSN classification based on its function, usage, and relevance in the market.
Historical GST Rates for Vacuum Flasks Now, when GST was first imposed in the year 2017, vacuum flasks along with such articles that come under HSN code 9617 were put under the higher slab of 28% GST. The fact that such goods were luxury items at the time, was reflected in the much higher rate. Nonetheless, considering that these products are quite useful and widely used, the GST Council decided to change the applicable rate.
Current GST Rate Note concerning such items covered under HSN code 9617 that the GST rate for vacuum flasks and other vacuum vessels was reduced to 18% w.e.f. 15th November, 2017. The shift aimed to make food more inexpensive and to foster the use of durable, reusable containers, and fits with an environmental sustainability agenda aimed at reducing single-use plastic containers.
The table below explains the related GST rates
SN Code Description GST Rate (%) CESS (%) 9617 Vacuum flasks and other vacuum vessels; parts (except glass inners) 18 0 961700 Vacuum vessels and parts (except glass inners) 18 0 96170011 Vacuum flasks with cases; parts (except glass inners) 18 0 96170012 Vacuum vessels with cases; parts (except glass inners) 18 0 96170013 Other vacuum vessels with cases; parts (except glass inners) 18 0 96170019 Miscellaneous vacuum vessels; parts (except glass inners) 18 0 96170090 Parts of vacuum vessels (other than glass inners) 18 0
Keynote: The Current GST rate on vacuum flasks and similar items is 18 percentile under HSN code 9617, which is uniform across India.
Classification of Flasks and Related Items HSN codes and GST rates can differ based on the design of flasks or similar products and their functionality and use, so it is imperative to differentiate between them.
Flask HSN Code Flasks implies containers given to hold fluids and keep up their temperature. These are usually vacuum-insulated and covered under HSN code 9617. Businesses selling such products are required to classify them accordingly when applying for GST returns.
Examples of Products Under Flask HSN Code Water bottles that are vacuum-insulated: Used to carry hot or cold drinks.Thermos Flasks: Used to store tea, coffee or soupFood jars: For keeping solid food hot or cold.Correct classification under HSN is crucial as these products are widely sold across retail stores, online marketplaces, and wholesale suppliers
You might also be interested in Repair and Maintenance HSN Code - 9987
Electric Kettle HSN Code and GST Rate Although both vacuum flasks and electric kettles have related purposes of maintaining or heating up liquids, they are classified differently as they serve entirely different functions.
HSN Code for Electric Kettles Electric kettles fall under HSN code 8516 , which includes
"Electric instantaneous or storage water heaters and immersion heaters; electric space heating apparatus and soil heating apparatus; electrothermic appliances of a kind used for domestic purposes."
Electric kettles fall under this category under 8516.79.10. An electric kettle is different from a vacuum flask, but the use is the same.
GST Rate for Electric Kettles Electric kettles fall under HSN code 8516, and are subject to 18% GST, in line with the GST rate for most electric appliances in households. This provides uniform taxing of electric items used in households.
Importance of Correct Classification Tax misclassification of electric kettles under HSN code 9617 (for vacuum flasks) or vice versa could also result in tax discrepancies and any resultant penalties. A clear product classification is vital for businesses to avoid such problems.
You can also use Swipe’s Easy GST calculator to make your process easier
What is the GST Rate for Thermos Flasks? Thermos flasks (often referred to as vacuum flasks) are common household items, designed specially to maintain the temperature of beverages for long periods of time. Thermal flasks are categorized under HSN code 9617 along with vacuum vessels.
In 2017, the GST applicable to thermos flasks was revised to 18%. This rate allows thermos vessels to remain affordable for the consumer and adds to the government’s revenue.
Importance of Accurate HSN Classification HSN classification is an important consideration of GST compliance that businesses should focus on. Misclassification can result in some of the following:
Wrong GST Rate: If the wrong GST rate is charged, it can lead to excess or shortage of tax payments and, in turn, an economic loss.Legal Issues: Mistakes in HSN classification can lead to GST non-compliance, exposing you to audits or penalties.Operational Challenges: Proper classification helps streamline inventory management, pricing strategies, and tax filings.Best Practices for Accurate Classification Visit GST guidelines and notifications about HSN codes Playing safe is better and professionals can guide and prevent problems if any arise. This is why tax professionals and GST consultants help businesses by not only minimizing the tax payments but also helping in classifying the transactions and hence companies can maintain compliance.
The GST rates and classifications are subject to change based on government decisions. Businesses must monitor these updates regularly. Recent Updates and Considerations Regular and timely updates/notifications have been made to make it more efficient and enhance the fairness of the GST system. Businesses that handle vacuum flasks, electric kettles, and other related products must be particularly alert.
Rates may be changed or goods may be redeployed depending on the need of the hour and the behavior exhibited by the market and general public.
To streamline the process of tax filing and ensure adherence to classification norms, the government encourages the use of GST-compliant software.
Sustainability initiatives targeting reusable products such as vacuum flasks have captured attention in this field.
With updated knowledge and action, companies can adjust and comply with such changes smoothly.
Conclusion Tax Rate of HSN Code 9617 is where Vacuum Flasks Are Included. These products currently attract 18% GST, with HSN code 9617, in keeping with the government's purpose of keeping these products affordable while balancing revenue.
Related products such as electric kettles fall under a different classification, HSN code 8516 but are taxed at 18% GST as well. Thus, the key difference between these two categories highlights the importance of obtaining the correct HSN classification to remain on the right side of compliance and taxation.
FAQs 1. What is the HSN code for vacuum flasks? The HSN code for vacuum flasks is 9617 for vacuum flasks and other vacuum vessels, complete with cases; and parts thereof other than glass inners.
2. What is the current GST rate for vacuum flasks under HSN code 9617? The GST rate in India for vacuum flasks is 18% under HNS code 9617 as of November 15, 2017.
3. How are electric kettles classified under HSN codes, and what is their GST rate? The HSN code of electric kettles is 8516, which are electric instantaneous or storage water heaters and other water heaters. Electric kettles are levied a GST rate of 18%
4. Are parts of vacuum flasks subject to the same GST rate as the complete product? Yes, components of vacuum flasks, excluding glass inners, fall under HSN code 9617 and are charged the same GST rate of 18% as the complete product..
5. Have there been any recent changes to the GST rates for vacuum flasks or electric kettles? Vacuum flasks and electric kettles continue to attract GST at 18%, the same has not been revised since November 15, 2017.
People Also Ask 1. What is the GST rate on plastic flasks? Plastic flasks fall under HSN code 3926 and attract 18% GST.
2. What is the GST rate for plastic spoons? Plastic spoons are classified under HSN code 3924 and also attract 18% GST.
3. Which items will have 40% GST? The 40% GST slab applies to sin and luxury goods such as tobacco, premium cars, and aerated drinks under the revised GST 2.0 structure.
4. What are the three types of flasks? The three common types are vacuum flasks (thermos flasks), plastic or stainless steel flasks, and laboratory flasks used in chemical setups.
5. Can we claim GST on vacuum cleaners? Yes, you can claim Input Tax Credit (ITC) on vacuum cleaners if they are used for business purposes, not for personal use.
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