Chapter 85 of the GST framework covers Electrical Machinery And Equi, and HSN Code 85423900 specifically identifies Electronic Integrated Circuits - Electronic Integrated Circuits -- Other for taxation purposes. This classification is mandatory for all businesses engaged in the supply of Electronic Integrated Circuits - Electronic Integrated Circuits -- Other. Tax rates applicable include CGST at 0.09, SGST/UTGST at 0.09, and IGST at 0.18 for interstate movements. The standard unit of measurement is u.
HSN Codes under Chapter 85 – Electrical Machinery And Equi
Below are related HSN codes from Chapter 85 – Electrical Machinery And Equi for your reference:
| Chapter | HSN Code | Description | CGST | SGST/UTGST | IGST |
|---|---|---|---|---|---|
| Electrical Machinery And Equi... | 85011011 | Electric Motors And Generators (Excluding Generati... | N.a. | N.a. | N.a. |
| Electrical Machinery And Equi... | 85011012 | Electric Motors And Generators (Excluding Generati... | N.a. | N.a. | N.a. |
| Electrical Machinery And Equi... | 85011013 | Electric Motors And Generators (Excluding Generati... | N.a. | N.a. | N.a. |
| Electrical Machinery And Equi... | 85011019 | Electric Motors And Generators (Excluding Generati... | N.a. | N.a. | N.a. |
| Electrical Machinery And Equi... | 85011020 | Electric Motors And Generators (Excluding Generati... | N.a. | N.a. | N.a. |
| Electrical Machinery And Equi... | 85012000 | Electric Motors And Generators (Excluding Generati... | 0.09 | 0.09 | 0.18 |
| Electrical Machinery And Equi... | 85013111 | Electric Motors And Generators (Excluding Generati... | 9.00% | 9.00% | 18.00% |
| Electrical Machinery And Equi... | 85013112 | Electric Motors And Generators (Excluding Generati... | 9.00% | 9.00% | 18.00% |
| Electrical Machinery And Equi... | 85013113 | Electric Motors And Generators (Excluding Generati... | 9.00% | 9.00% | 18.00% |
| Electrical Machinery And Equi... | 85013119 | Electric Motors And Generators (Excluding Generati... | 9.00% | 9.00% | 18.00% |
GST Rates for HSN 85423900
The tax structure for Electronic Integrated Circuits - Electronic Integrated Circuits -- Other under HSN Code 85423900 follows a dual taxation model. CGST is levied at 0.09 and SGST/UTGST at 0.09 for intrastate sales. Interstate transactions attract IGST at 0.18. All invoices must record quantities in u as the standard measurement for goods under Chapter 85 – Electrical Machinery And Equi.
Who Should Use HSN Code 85423900?
Every entity transacting in Electronic Integrated Circuits - Electronic Integrated Circuits -- Other must quote HSN Code 85423900 on invoices. This includes traders, distributors, and e-commerce sellers operating under Electrical Machinery And Equi. Chapter 85 mandates this classification for accurate tax computation across the supply chain.
Business Registration Requirements
Commencing trade in Electronic Integrated Circuits - Electronic Integrated Circuits -- Other? Secure GST registration to handle taxes on HSN 85423900 classified goods. Businesses with international operations in Electrical Machinery And Equi need an Import Export Code. Exporters require AD Code registration for foreign currency receipts. Start with company registration to formalize your business structure.
Why Correct Classification Matters
Using HSN Code 85423900 accurately for Electronic Integrated Circuits - Electronic Integrated Circuits -- Other avoids compliance issues and facilitates credit claims. Monitor changes to 0.09, 0.09, and 0.18 rates for Chapter 85 – Electrical Machinery And Equi to maintain accurate filings and smooth business operations.
Frequently Asked Questions (FAQs)
How many digits of HSN Code 85423900 should I mention on invoices?
The number of HSN digits depends on your annual turnover. Businesses with turnover above Rs 5 crore must mention 6 digits, while others may use 4 digits. Always use the complete HSN 85423900 for accurate classification of Electronic Integrated Circuits - Electronic Integrated Circuits -- Other.
Can I claim input tax credit on Electronic Integrated Circuits - Electronic Integrated Circuits -- Other purchases?
Yes, registered businesses can claim input tax credit on Electronic Integrated Circuits - Electronic Integrated Circuits -- Other purchases made under HSN 85423900. Ensure your supplier mentions correct HSN code and GST rates (0.09, 0.09) on the invoice.
What is the difference between CGST and IGST for HSN 85423900?
CGST at 0.09 plus SGST/UTGST at 0.09 applies when Electronic Integrated Circuits - Electronic Integrated Circuits -- Other is sold within the same state. IGST at 0.18 is charged when goods move across state borders or are imported.
Is Import Export Code necessary for trading Electronic Integrated Circuits - Electronic Integrated Circuits -- Other domestically?
No, Import Export Code is only required if you plan to import or export Electronic Integrated Circuits - Electronic Integrated Circuits -- Other internationally. For domestic trade within Electrical Machinery And Equi, GST registration is sufficient.
