Vat rates

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 December 2014 Hello

I wanted to know the rates applicable on hardware items (door handles, locks) made out of

1- Zinc
2- Brass

Plus rate applicable on Zinc and Brass as raw materials to manufacture goods further!

And does the VAT rate differ state to state on the same items, in this case being the builders hardware items?

Thanks a lot!

CA PARTH SHAH

CA PARTH SHAH (Expert)
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20 December 2015 Yes VAT Rate differs from state to state. VAT rate remains same whether used as raw material or used as Finished goods.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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03 August 2025 Here’s a detailed breakdown of VAT rates on hardware items (door handles, locks) made of Zinc and Brass, plus the rates on the raw materials, and info on state-wise variations:
1. VAT Rate on Finished Hardware Items (Door Handles, Locks)
Material: Zinc or Brass
Typically, builders hardware items like door handles and locks fall under manufactured goods and attract VAT based on their classification.
Common VAT Rates (vary by state):
Maharashtra: ~12.5% on hardware items (manufactured goods)
Rajasthan: 12.5% to 15%, depending on classification and notification
Gujarat: Around 4% to 12.5%, depending on industrial classification
Karnataka: 5% to 12.5% based on schedules
Other states: VAT rates generally range between 5% to 15%
Note: Some states provide concessional rates for builders hardware under certain schedules, but mostly these items attract standard VAT rates.
2. VAT Rate on Raw Materials (Zinc and Brass)
Zinc and Brass as raw materials used in manufacturing usually fall under raw material or input category.
Typical VAT Rates on Raw Materials:
Raw metals like Zinc and Brass often attract lower VAT rates or may be exempt if used as industrial inputs.
Example:
Maharashtra: Zinc & Brass as raw materials generally taxed at 5% or exempt if covered under industrial inputs.
Gujarat: May have 4% VAT on such metals used as inputs.
Other states: Rates vary, but usually lower than finished goods rates.
3. State-wise Variation
Yes, VAT rates vary significantly from state to state on the same items, including builders hardware.
This is because each state has its own VAT Act with different schedules, notifications, and concessions.
For example:
Maharashtra has a separate schedule for industrial inputs, with lower rates on raw materials.
Rajasthan and Gujarat might have different slabs and exemption notifications.
Summary Table (Indicative)
Item Material VAT Rate Range (Approx.) Notes
Door handles, locks Zinc/Brass 12.5% - 15% Standard rate on finished goods
Zinc (raw material) Zinc 0% - 5% Often exempt or concessional as industrial input
Brass (raw material) Brass 0% - 5% Same as Zinc
Recommendation
For exact VAT rates, refer to the specific state's VAT schedules and notifications.
If you deal with multiple states, consult state VAT acts or tax professionals for compliance.
Industrial inputs often get concessional rates or exemptions if used in manufacturing.

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