The HSN code divides the GST rate for writing instruments, pens, and paper among various HSN code chapters. All goods & services are, however, subject to tax in one of five brackets: 0%, 5%, 12%, 18%, and 28%.
The GST system will take over the taxation prices and procedures as of July 1st, 2017, when the GST portal went live. All Indian businesses began modifying the process for GST taxation, including the GST registration and GST filing processes. Based on the global method for categorizing items in international trade, the HSN code and GST rates in India have been made available for all products and services. In this post, we take a close look at the GST rate for office supplies, including paper and pen stationery items.
GST Rate on Pens and Stationery Items
Pens and the majority of stationery items are under chapter 96 of the HSN code system. Only slate pencils, chalk, and slates are included in the list of stationery items that are exempt from GST. The following rates apply to GST taxation on any other stationery items.
The following pens and stationery are subject to a 12% GST.
- Other than fountain and stylograph pens, pens
- Writing or drawing chalks, pastels, drawing charcoals, pencils, crayons, and tailor’s chalk
The following pens and stationery items are subject to a GST tax rate of 18%.
- Prepared knots and tufts for forming brooms or brushes; paint pads and rollers; squeegees; hand-operated mechanical floor sweepers that are not motorized; brushes (including brushes that are parts of machinery, appliances, or vehicles); and mops and feather dusters
- A hand riddle and a hand sieve Various pens, including fountain pens and stylographs
- Boards with a surface for writing or sketching, whether or whether they are framed.
- Toner, whether they are colored, including or without cases; typewriter or comparable ribbons, whether they are upon spools or in cartridges, marked and otherwise ready for giving impressions.
- Tripods, monopods, and other related items.
Base Metal Stationery is Subject to a 28% GST Tax
Under the Goods and Services Tax (GST) system, certain stationery items and pens are subject to a 28% GST rate. Interestingly, these products are not categorized under Chapter 96, which typically includes stationery items, but rather fall under Chapter 83, which covers miscellaneous articles made of base metal. For businesses involved in the manufacturing or sale of these items, it is crucial to have GST registration. This registration allows them to correctly apply the GST rates according to the specific chapter classifications and manage their tax liabilities effectively. Ensuring compliance with the GST norms through proper registration helps in avoiding penalties and facilitates smoother business operations.
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Office and Desk Equipment
This category includes items such as card-index cabinets, paper trays, paper rests, pen trays, office stamp stands, and filing cabinets. All these items are made of base metal and are designed for use in office settings. However, this classification does not include office furniture.
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Office Articles
This classification covers fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags, and other similar office articles, all made of base metal. It also includes metal staples in strips, which are used in various applications such as offices, upholstery, and packaging.
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Plates, Numbers, and Letters
Included in this category are sign plates, nameplates, address plates, and similar items such as numbers, letters, and symbols, all crafted from base metal. These items are commonly used for identification and labelling purposes in various settings.
GST Rate for Stationery Products Made of Paper
Chapter 48 of the HSN Code is used to classify paper and paperboard as well as goods made of paper pulp, paper, or paperboard. Products made of paper that fall under this chapter are subject to various GST rates, as follows:
1: Product of Paper-Based Stationery Attracting 12% GST
The following products are subject to a 12% GST:
- Paperboard, greaseproof paper, glassine, composite paper, and uncoated paper are some examples of uncoated paper.
- Paper for aseptic packing
- a variety of paper stationery items, including writing blocks, paper or paperboard boxes, pouches, wallets, and writing compendiums.
- corrugated paper or paper board cases, cartons, and boxes
- Workout journal, graph book, and lab notebook
2: Paper-Based Stationery Items attracting 18% GST
18% GST is applied to the following items:
- Carbon paper, self-copy paper, and other copying or transfer papers printed or unprinted in rolls or sheets, including coated or impregnated paper for duplicator stencils or offset plates
- Other than boxes, pouches, wallets, and writing compendiums made of paper or paperboard that include a variety of paper stationery items, including writing blocks, envelopes, letter cards, plain postcards, and correspondence cards.
- Account books, notepads, order books, receipt books, letter pads, memo pads, diaries, and other similar items, notebooks, western blot, folders ( loose leaf or other), folders, file covers, numerous business forms, interleaved carbon sets, and other stationery items made of paper or paperboard, as well as book covers, are included.
| Items | GST Rate | Chapter HSN Code |
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12% | Chapter 96 |
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18% | Chapter 96 |
Stationery Products of Base Metal
|
28% | Chapter 83 -miscellaneous articles of base metal. |
|
12% | Chapter 48 |
|
18% | Chapter 48 |
Conclusion
Stationery items qualify for the Input Tax Credit (ITC). The requirement is that it must be applied to business advancement and not be placed on a blacklist. If the expense is covered at the corporate level, it must be divided among the different divisions in accordance with each one’s proportionate share of the total expenses. Further, if you want to know more about whether GST on stationary products going to impact you, visit Vakilsearch official blogs.
FAQs on Stationery Items
What is the current Goods and Services Tax (GST) rate applicable to stationary products such as pens and paper?
The current GST rate applicable to stationery products such as paper and pens is 12% and 18% respectively.
Are there different GST rates for pens and paper, or do they fall under a single tax category?
Pens and paper generally fall under different tax categories with a GST rate of 12% and 18% under Chapter 96 of the HSN code system.
Do handmade or specialty pens and paper have a different GST rate compared to regular stationery items?
Handmade or specialty pens and paper may have a different GST rate compared to regular stationery items, depending on their classification under the HSN code system. However, most stationery items, including pens and paper, fall under the 12% and 18% GST rate categories.
How does the GST rate for stationary products impact businesses involved in the manufacturing and sale of pens and paper?
The GST rate for stationery products impacts businesses involved in the manufacturing and sale of pens and paper by influencing pricing, input tax credit, and compliance with GST regulations. It is essential for businesses to understand and adhere to the applicable GST rates to ensure compliance and minimize tax liabilities.
Are there any recent changes in the GST rate for stationary items, and if so, how might it affect consumers and businesses in the stationery industry?
There have been recent changes in the GST rate for stationary items, including pens and paper. The GST rate for some items was revised at the 47th GST Council meeting, with certain items seeing a change from 12% to 18%.
These changes may affect consumers and businesses in the stationery industry by impacting pricing and input tax credit availability
