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Published on:

June 2, 2025

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Basics of GST

GST Rates and HSN Code 8203 for Files and Rasps

The Goods and Services Tax (GST) serves as a complete indirect taxation system which removes multiple existing indirect taxes across India. Businesses need to understand GST rates together with Harmonized System of Nomenclature (HSN) codes for the purpose of tax compliance and payment accuracy.

The guide contains information about the GST rates of Files and Rasps which fall under HSN Code 8203 including relevant taxation guidelines and compliance standards needed for traders and manufacturers.

Understanding HSN Code 8203

HSN codes are standardized numerical classifications used to identify goods for taxation purposes. The HSN Code 8203 pertains to hand tools such as files, rasps, pliers, and other similar tools.

Definition of HSN Code 8203

HSN Code 8203 includes:

Files and rasps

Pliers, pincers, tweezers

Metal cutting shears and similar hand tools

Pipe-cutters, bolt croppers, and similar tools

Such tools are commonly found in metalworking facilities, woodworking workshops, and the jewellery industry, and mechanical repair shops.

GST Rates for Files and Rasps under HSN Code 8203

Under the Indian GST structure, different products fall under specific tax slabs. The GST rate for Files and Rasps (HSN 8203) is 18%. This is applicable as follows:

CGST (Central GST): 9%

SGST (State GST): 9%

IGST (Integrated GST): 18% (for inter-state sales)

GST Rate Breakdown for Various Tools under HSN Code 8203

Tool Type	HSN Code	GST Rate
Files and Rasps	8203	18%
Pliers and Pincers	8203	18%
Metal Cutting Shears	8203	18%
Pipe Cutters & Bolt Croppers	8203	18%

Classification of Files and Rasps Under HSN Code 8203

Files and rasps are widely used in metalworking, woodworking, and plastic shaping. They are classified into various types based on their application:

1. Metal Files

Used for shaping and smoothing metal surfaces.

Common types include flat, round, and half-round files.

Typically made from high-carbon steel for durability.

2. Wood Rasps

Designed for shaping and smoothing wood.

Features coarse teeth that remove wood efficiently.

Commonly used by carpenters and sculptors.

3. Needle Files

The jewellery industry and intricate metalwork processes use small precision files as their main tool.

These filing tools can be found in triangular, square, and round variants.

4. Diamond Files

The diamond coating enables these files to perform precise filing activities.

The files work effectively on materials which include glass and ceramics and hardened steel.

5. Engineer's Files

General-purpose files used in workshops and factories.

Available in various cuts and sizes to suit different applications.

Input Tax Credit (ITC) on Files and Rasps

Businesses that purchase Files and Rasps for manufacturing, resale, or business use can claim Input Tax Credit (ITC) on GST paid at the time of purchase. To avail of ITC:

Ensure the supplier is GST-registered.

Maintain a valid tax invoice.

File timely GST returns.

GST Compliance for Importers and Manufacturers

For businesses importing or manufacturing Files and Rasps, compliance with GST regulations is necessary. The steps involved include:

Every business must enrol in GST if their annual business revenue surpasses ₹40 lakhs (service providers need to join when their sales reach ₹20 lakhs).

Every declaration for GST should contain HSN Code 8203.

The import of Files and Rasps requires businesses to pay both Customs Duty and IGST at the rate of 18%, which must be paid.

Any business needs to prepare E-Way Bill documentation to move goods valued more than ₹50,000 throughout different states.

Businesses using HSN Code 8203 must file GST Returns as per set requirements

GST return filing is crucial to ensure smooth business operations. Common GST returns applicable for businesses dealing with Files and Rasps include:

GST Return Type	Purpose	Due Date
GSTR-1	Outward Supplies (Sales)	11th of Next Month
GSTR-3B	Summary Return & Tax Payment	20th of Next Month
GSTR-9	Annual Return	31st December

Businesses should ensure timely GST return filing to avoid penalties and interest charges.

Impact of GST on the Hand Tool Industry

The implementation of GST has streamlined taxation on hand tools, including Files and Rasps, by eliminating multiple indirect taxes. Some notable impacts include:

Reduced Compliance Burden: Previously, VAT, Excise, and other taxes applied. A single GST rate simplifies taxation.

Improved Transparency: A uniform tax rate reduces ambiguities and tax evasion.

Ease of Interstate Trade: IGST ensures smooth interstate transactions without entry taxes.

How to Determine the Correct HSN Code for Your Products

The HSN Code 8203 classification for your product can be determined through these necessary steps:

Check whether your product belongs to the hand tool category between files and rasps and related hand tools.

Verify the current GST rules by referring to authoritatively published notices available through the official GST website.

Seek help from a GST expert whenever you need assistance to properly classify products under HSN Code 8203.

Conclusion

Business operators who handle hand tools need to grasp GST rates along with HSN Code 8203 for Files and Rasps fundamentals to comply properly. Businesses need to fulfil GST compliance requirements regarding GST filing as well as invoicing and input tax credit claims when operating at an 18% GST rate. Proper classification under HSN Code 8203 helps in accurate taxation and regulatory compliance.

The operation of your business will benefit from regular GST regulation tracking and efficient GST return submissions to prevent penalty charges.

FAQs

1. What is the GST rate for Files and Rasps under HSN Code 8203?

Files and Rasps under HSN Code 8203 pay GST at 18% from which each authority receives a 9% share as either CGST and SGST or 18% IGST.

2. Can I claim an Input Tax Credit (ITC) on purchasing Files and Rasps?

Yes, businesses purchasing Files and Rasps for resale or manufacturing purposes can claim ITC on GST paid, provided they comply with GST regulations.

3. Is an E-Way Bill required for transporting Files and Rasps?

Shippers need to obtain an E-Way Bill once their shipment value goes above ₹50,000 in inter-state transportation.

4. Are Files and Rasps subject to IGST when imported?

Yes, imported Files and Rasps attract IGST at 18%, along with applicable customs duties.

5. How do I correctly classify my product under HSN Code 8203?

The product must be categorized as a hand tool, such as file or rasp or similar device, to qualify under HSN Code 8203. Consult official GST notifications through experts or professionals.