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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:
๐ 1. Nature of Supply: Tooling & Development Charges
These are generally considered as services, unless you're transferring ownership of the tool itself.
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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.
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Even if physical tools are given to the customer, but ownership remains with you, it’s still a service.
๐งพ Applicable GST Code: SAC 998346
Descripttion: Industrial and manufacturing services – tooling, prototyping, and industrial design services
โ
GST Rate for SAC 998346:
| SAC Code |
Descripttion |
GST Rate |
| 998346 |
Industrial design & tooling services |
18% |
๐น This rate applies to development, tooling, and prototyping charges, even if they are related to a product like an improved cook stove.
๐ 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.
| HSN Code |
Descripttion |
GST Rate |
| 8207 |
Tools for pressing, die sets, molds |
18% |
However, most tooling charges are treated as service (SAC 998346), unless a specific contract transfers the tool itself.
๐ฑ Improved Cook Stove Context
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If you're developing tooling specifically for a clean/eco-friendly cook stove, there's no separate concessional GST unless notified.
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Cook stoves themselves (if classified under HSN 7321) may attract 12% or 18%, but tooling charges remain at 18%.
๐งพ Final Answer
| Component |
Code |
GST Rate |
| Tooling & Development Charges |
SAC 998346 |
18% |
| (If tools are supplied as goods) |
HSN 8207 |
18% |