GST Tax Rate for Ball Point Pen Tips and Balls
The West Bengal Authority for Advance Ruling decided that ball point pen tips and balls are taxable at 18% GST.
- Ruling
- 44/WBAAR/2018-19 dated 13/03/2019
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Shiva Writing Co asked for the tax rate on pen tips and balls.
- The authority classified these parts under HSN code 9608 99 90.
- These items are subject to 18% GST, not a lower rate.
In short
The company asked the West Bengal Authority for Advance Ruling (AAR) to confirm the GST rate for ball point pen tips and balls. They wanted to know if these parts qualified for a 12% tax rate, similar to finished pens. The authority examined the classification and determined that these specific parts fall under a general category that carries a higher tax burden.
What has changed
How it worked before
Businesses were uncertain whether pen parts like tips and balls should be taxed at the same rate as finished pens or refills, often assuming a lower rate might apply.
What has changed
The authority ruled that these parts fall under HSN 9608 99 90, which is a catch-all category for pen parts not specifically listed elsewhere. This means they are taxed at 18% GST. For a business, this confirms that you cannot assume parts are taxed at the same rate as the final product.
Who this affects
Manufacturers and traders of ball point pen components.
An example
Imagine a company called 'InkFlow Parts' that sells steel balls for pen tips. They previously charged 12% GST, thinking it was the same as a finished pen. After reading this ruling, they realize their parts fall under the 18% category. They should now update their billing software to charge 18% to avoid future tax disputes.
What you should do
If you trade in these parts, review your current tax filings to ensure you are charging 18% GST. Remember that an Advance Ruling only binds the company that asked and its specific tax office; it is not a law that automatically applies to your business.
If you do nothing
If you apply the wrong tax rate, you may face a demand for the unpaid tax difference plus interest and penalties. A tax officer is not required to follow this ruling for your business and may choose to enforce the 18% rate strictly. Relying on a ruling that does not apply to you can lead to costly legal disputes.
The terms explained
- HSN
- Harmonized System of Nomenclature is a code used to classify goods for taxation purposes.
- Residuary entry
- A catch-all category in the tax schedule for items that do not have a specific, named entry.
- Advance Ruling
- A formal decision by tax authorities on how GST applies to a specific business transaction.
The ruling in detail
Authority for Advance Ruling
Shiva Writing Company Pvt. Ltd.
44/WBAAR/2018-19 dated 13/03/2019 · West Bengal
Questions before the authority
- Whether tips and ball, both being pen parts under HSN Chapter Head 9608, used in manufacturing process of ball point pens, are taxable at the rate of 12%
- If the tips and balls used in the manufacturing of ball point pens are not taxable at the rate of 12% under HSN 9608, then at what rate shall they be taxable and under which HSN
Facts
The applicant manufactures and supplies ball point pens, and also trades in pen tips and refills. They sought a ruling on the classification and tax rate applicable to pen tips and balls used in the manufacturing process. The authority clarified that while the applicant used the terms nibs and tips interchangeably, the products in question are specifically ball point pen tips and balls.
Ruling
| Question | What the authority ruled |
|---|---|
| Tips and balls for ball point pens | 18% (9% CGST + 9% SGST) Classified under HSN 9608 99 90 |
The authority ruled that tips and balls for ball point pens are classified under HSN 9608 99 90. Consequently, they are taxable at the rate of 18% (9% CGST and 9% SGST) under Serial Number 453 of Schedule III of the relevant Rate Notification.
Reasoning
The authority determined that tips and balls are parts of pens but do not fall under specific sub-headings for pens or refills. Applying the Rules of Interpretation for the Tariff Act, they concluded the items fall under the residuary category of 9608 99 90. Since these parts are not specifically exempted or included in lower tax schedules, they fall under the **residual entry** for Schedule III of Notification No. 01/2017-Central Tax (Rate).
Provisions relied on
- Section 97(2) (a) & (b) of the GST Act
- Notification No. 1/2017-CT (Rate) dated 28/06/2017
- Notification No. 1125-FT dated 28/06/2017
- HSN Chapter Head 9608
- Section 103(2) of the GST Act
- Section 104(1) of the GST Act
For the practitioner
This ruling clarifies that parts of ball point pens, specifically tips and balls, are **taxable at 18%** rather than the lower rates applicable to finished pens or refills. It settles the classification dispute by distinguishing between pen nibs and ball point tips. Practitioners should note this confirms that parts not specifically enumerated in lower schedules default to the **residuary entry** in Schedule III.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/wb_44_2018-19_swcpl.pdf
Legibility of the scan, as read: high.
Prepared 20-10-2026.
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