GST on watch purchases is a key consideration for consumers in India. Understanding the GST rate on watches and clocks is crucial for making informed buying decisions. In this article, we delve into the HSN code for watch categories, the applicable GST rates, and the impact on prices.
Table of Contents
HSN Code for Watches and Clocks
Chapter 91 of the Harmonised System of Nomenclature (HSN) covers the classification and GST Rates for watches, clocks, and their parts. The HSN system assigns specific codes to different product categories, which determine the applicable GST rate. Here’s a breakdown:
Clocks Attracting 18% GST
Description |
HSN Code |
|
Clocks with watch movements |
9103 |
|
Other clocks |
9105 |
|
Clock movements, complete and assembled |
9109 |
|
Clock parts |
9114 |
As observed above, most clock categories fall under the 18% GST slab. This includes wall clocks, table clocks, alarm clocks, and other common clock types. The only exception is Braille clocks, which are taxed at a lower rate of 12% to make them more accessible for visually impaired individuals.
Watches and Clocks Attracting 28% GST
While the standard GST rate on watches and clocks is 18%, certain premium categories attract a higher 28% GST. This includes:
Description |
HSN Code |
|
Wristwatches, pocket watches, and other watches with cases made of precious metals or metals clad with precious metals |
9101 |
|
Other wristwatches, pocket watches, and watches, including stopwatches |
9102 |
|
Instrument panel clocks and similar clocks for vehicles, aircraft, spacecraft, or vessels |
9104 |
|
Time recording apparatus and devices for measuring, recording, or indicating time intervals |
9106 |
|
Time switches with clock or watch movement or synchronous motor |
9107 |
|
Watch movements, complete and assembled |
9108 |
|
Complete, incomplete, or rough watch or clock movements |
9110 |
|
Watch cases and parts |
9111 |
|
Clock cases and similar cases for other goods, and parts |
9112 |
|
Watch straps, bands, bracelets, and parts |
9113 |
|
Other watch parts |
9114 |
The higher 28% GST rate on these premium watch and clock categories is in line with the taxation of other luxury goods. It’s important for consumers to be aware of these GST Rates based on the HSN code for watch products before making a purchase, as it significantly impacts the final price.
Conclusion
The introduction of GST has streamlined the indirect tax structure for the watch and clock industry. While the 18% and 28% rates are slightly higher than the pre-GST tax incidence, the availability of input tax credit is expected to neutralize the overall impact on prices for end consumers.
As a buyer, it’s crucial to understand the GST on clocks and watches based on their HSN classification. Factor in the applicable GST rate when making a purchase decision, and ensure that dealers charge GST correctly as per the HSN code for watch products. With this knowledge, you can make informed choices and understand the price implications of GST on watch purchases.
Frequently Asked Questions (FAQs):
1. Why is GST on watches so high?
The 18% and 28% GST Rates on watches and clocks are in line with the pre-GST indirect tax incidence. The higher rate on premium watches is consistent with the taxation of other luxury goods.
2. Is there any way to reduce GST when buying a watch?
No, the GST rate is fixed based on the HSN classification of the watch. However, comparing prices across retailers and availing seasonal discounts can help offset the impact of GST.
3. Are imported watches taxed differently under GST?
Imported watches attract Integrated GST (IGST) on the assessable value plus basic customs duty. The applicable IGST rate depends on the HSN code of the imported watch.
4. Is GST applicable to watch repairs and servicing?
Yes, watch repair and servicing services attract GST at the standard rate of 18%. This is applicable for both material costs and service charges.
5. Can businesses claim Input Tax Credit (ITC) on watches purchased for official use?
Yes, businesses can claim ITC on the GST paid for watches purchased and used for official purposes, subject to the normal ITC rules and restrictions.
6. Are there any exemptions or discounts for GST on watches and clocks?
Apart from the lower 12% GST on Braille watches, there are no specific exemptions or discounts available on the GST applicable for watches and clocks.
7. How do I know if a watch falls under the 18% or 28% GST rate?
Refer to the HSN code of the watch and match it with the classifications mentioned in this article. Watches under HSN 9101, 9102, 9104, 9106, 9107, 9108, 9110, 9111, 9112, 9113, and parts of 9114 attract 28% GST, while others fall under the 18% slab.
