Code GST

To determine the correct HSN/SAC code and GST rate for "Tooling and developing charges for an improved cook stove", we need to break the transaction into two parts:

🔍 1. Nature of Supply: Tooling & Development Charges

These are generally considered as services, unless you're transferring ownership of the tool itself.

• If you're charging for the design, development, and making of tools used in manufacturing a product (e.g., molds, dies, jigs), then it is treated as a service under GST.

• Even if physical tools are given to the customer, but ownership remains with you, it’s still a service.

🧾 Applicable GST Code: SAC 998346
Descripttion: Industrial and manufacturing services – tooling, prototyping, and industrial design services

✅ GST Rate for SAC 998346:

🔹 This rate applies to development, tooling, and prototyping charges, even if they are related to a product like an improved cook stove.

🔍 2. If the Tool/Fixture is Supplied as Goods (Optional Case)

If you're transferring the ownership of the tool, it becomes a supply of goods under HSN.

• Likely HSN for tools/dies: 8207 – Interchangeable tools for hand tools, machine tools.

However, most tooling charges are treated as service (SAC 998346), unless a specific contract transfers the tool itself.

🌱 Improved Cook Stove Context

• If you're developing tooling specifically for a clean/eco-friendly cook stove, there's no separate concessional GST unless notified.

• Cook stoves themselves (if classified under HSN 7321) may attract 12% or 18%, but tooling charges remain at 18%.

🧾 Final Answer