Stationery products, from humble pencils to sophisticated office equipment, are essential for both individuals and businesses. However, understanding the Goods and Services Tax (GST) implications on these items can be complex. This guide provides a clear overview of GST rates, classifications, and other relevant aspects of stationery products.
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GST Rates for Stationery Items
The GST rates for stationery items range from 5% to 18%, depending on the type, material, and usage of the item. These rates apply to various stationery products commonly used in schools, offices, and homes, with HSN codes determining specific rates.
Below is a breakdown of GST rates and their corresponding HSN (Harmonized System of Nomenclature) codes for different stationery products:
Stationery Item |
HSN Code |
GST Rate |
| Slate Pencils and Chalk Sticks | 9609 | NIL |
| Slates | 9610 00 00 | NIL |
| Postage or Revenue Stamps, First-Day Covers, Postal Stationery (Stamped Paper) | 9704 | 5% |
| Pencils & Crayons | 9609 | 12% |
| Pens & Ballpoint Pens | 9608 | 18% |
| Staplers & Staples | 8205 | 18% |
| Erasers | 4016 | 18% |
| Adhesive Tapes | 3919 | 18% |
| Calculators | 8470 | 18% |
GST Rates for Paper-Based Stationery Products
Paper-based stationery items, commonly used in schools, offices, and homes, are now subject to a GST rate ranging from 12% to 18%. The 47th GST Council meeting removed the previous exemption for certain printed items, including maps, globes, and similar charts, which were previously exempt.
Paper-Based Stationery Product |
HSN Code |
GST Rate |
Description |
| Exercise books | 4820 | 12% | Notebooks and similar products |
| Envelopes and letter cards | 4817 | 18% | Made from paper or paperboard |
| Paper registers and diaries | 4820 | 12% | For record-keeping or note-taking |
| Printed books | 4901 | Exempt | Including textbooks, storybooks, etc. |
GST Rate for Stationery Products Made of Metal
Metal-based stationery items, commonly used in offices, are subject to an 18% GST rate. This higher rate reflects the durability and specialized manufacturing processes of these products.
Metal-Based Stationery Product |
HSN Code |
GST Rate |
Description |
| Staplers and staples | 8305 | 18% | Used for binding papers |
| Paper clips, clamps, and similar | 8305 | 18% | For organizing and securing documents |
| Pencil sharpeners | 8214 | 18% | Typically made of metal, for sharpening pencils |
GST Rates for Printing Services
Printing services for stationery items are taxed at an 18% GST rate. This includes job work and various printing processes associated with producing stationery products.
Printing Service |
HSN Code |
GST Rate |
Description |
| Job work related to printing | 9988 | 18% | Includes all types of printing on stationery |
| Printing of paper-based stationery | 9989 | 18% | Printing of notebooks, diaries, etc. |
| Printing on metal-based stationery | 9989 | 18% | Printing on metal clips, tags, etc. |
Please note that according to the latest ruling by the Authority for Advance Rulings (AAR) for PKS Centre for Learning, the printing of stationery items like question papers, pass certificates, admit cards, and ID cards on a contract basis for a school board is exempt from GST. However, printing answer booklets is subject to a 12% GST levy.
Input Tax Credit (ITC) for Stationery
Businesses purchasing stationery for operational use are eligible to claim Input Tax Credit (ITC) under GST, provided the items are used in the course of business. The conditions for claiming ITC include:
- The business must possess a tax invoice or debit note issued by the supplier.
- The goods/services must have been received by the business.
- The business must have filed the relevant GST returns.
- The supplier must have paid the tax charged on the supply to the government.
By fulfilling these criteria, businesses can reduce their GST liability by claiming ITC on the GST paid for stationery purchases.
Related Reads:
GST Impact on Stationery Businesses
Price Changes Post-GST Implementation
The introduction of GST has streamlined the tax structure for stationery items, leading to a clearer understanding of tax obligations. However, it has also resulted in price changes for certain products, especially those with higher GST rates.
Effect on Small Businesses and Retailers
Small businesses and retailers in the stationery sector have had to adjust their pricing strategies to accommodate the new GST rates. The ability to claim ITC has been beneficial, but the need for compliance and regular filings has added to the administrative burden.
Conclusion
Understanding the GST rates on stationery items and their HSN codes is crucial for businesses involved in the sale and purchase of these products. Proper knowledge ensures compliance with tax regulations and helps in availing Input Tax Credit where applicable.
Related Read: GST on Online Gaming
Frequently Asked Questions
1. What is the GST rate for printing and stationery items?
The GST rate for printing services related to stationery items is 18%. The rate for stationery products varies, with paper-based items generally attracting 12% GST.
2. What is the GST on a notebook?
Notebooks fall under the paper-based stationery category and attract a GST rate of 12%.
3. What is the HSN code for stationery material?
The HSN code for general stationery items, like paper-based products, is 4820. For metal-based items, it is 8305.
4. Is there a difference in GST rates for stationery purchased for personal use and business use?
No, GST rates are uniform regardless of whether stationery is purchased for personal or business use.
5. Are there different GST rates for pens and paper?
Yes, pens are generally taxed at 18% under HSN code 9608, while paper-based stationery items like notebooks are taxed at 12% under HSN code 4820.
6. Do handmade or specialty pens and paper have a different GST rate?
Handmade or specialty pens and paper may attract different GST rates depending on their classification. Typically, handmade items are taxed at 12%, while regular pens are taxed at 18%.
7. Can educational institutions claim GST input credit on stationery?
Educational institutions can claim Input Tax Credit (ITC) on stationery purchases if they are registered under GST and the items are used in the course of their business or services.
