If you deal in hand tools, whether as a manufacturer, supplier, or trader, understanding the HSN code is very important. It’s not just a number on your invoice — it helps in taxation, global trade, and compliance under the GST system in India. In this blog, we’ll explain what the HSN code for hand tools means, its importance, classification, and how it impacts your business.

What is an HSN Code?

HSN (Harmonized System of Nomenclature) is a globally recognized system for classifying goods. It was developed by the World Customs Organization (WCO) to make international trade systematic and uniform.

In India, HSN codes are used under the GST (Goods and Services Tax) structure to classify products and determine applicable tax rates. Every product or category of goods has a unique HSN code that defines its type and use.

For example, if you are selling a spanner, plier, hammer, or screwdriver, each of these falls under a specific HSN code related to hand tools.

Why is HSN Code Important for Hand Tools?

If you are in the business of manufacturing or selling hand tools, here’s why you must mention the correct HSN code:

  1. GST Compliance:
    Under Indian GST laws, businesses must include the correct HSN code on invoices to determine the right tax rate.
  2. Avoid Penalties:
    Using the wrong code can lead to incorrect tax calculation and potential penalties.
  3. Smooth Export Process:
    HSN codes are internationally recognized, which makes export documentation easier and faster.
  4. Product Categorization:
    It helps in product classification for customs, import-export, and inventory management.
  5. Transparency:
    Customers, tax officials, and businesses can easily identify the nature of goods just by checking the HSN code.

HSN Code for Hand Tools

Hand tools are classified mainly under Chapter 82 of the HSN Code system. Chapter 82 covers:

“Tools, implements, cutlery, spoons, and forks, of base metal; parts thereof of base metal.”

Let’s look at the most commonly used HSN codes for hand tools in India.

🔧 Common HSN Codes for Hand Tools

Product TypeHSN CodeDescription
Hand tools (spanners, wrenches, pliers, hammers, screwdrivers, etc.)8205Hand tools (including glaziers’ diamonds), not elsewhere specified or included; blow lamps; vices, clamps, and the like; anvils; portable forges; hand- or pedal-operated grinding wheels with frameworks.
Spanners and Wrenches8204Hand-operated spanners and wrenches, including torque meters and extension handles.
Screwdrivers and Nut Drivers8205Hand tools such as screwdrivers, interchangeable tools, pliers, etc.
Cutting Tools (Files, Rasps, Chisels)8202Saws, blades for saws, files, rasps, pliers, and similar tools.
Hammers, Axes, and Similar Tools8205Hammers, mallets, and striking tools.
Pliers and Similar Tools8203Pliers (including cutting pliers), pincers, and similar hand tools.
Tool Sets8206Sets of two or more hand tools of heading 8202 to 8205, put up in sets for retail sale.

GST Rate on Hand Tools

Under the GST system, most hand tools fall under Chapter 82 and attract 18% GST.
However, this rate can vary slightly depending on the specific tool type and usage. For example:

  • General hand tools: 18% GST
  • Cutting tools or specific machine tools: May fall under 12% or 18%, depending on classification

So, always verify the updated rate on the official CBIC GST portal or consult a tax expert before filing returns.

Example of HSN Code in Invoice

If you sell a spanner set from your business, your invoice should include details like this:

  • Product Name: Spanner Set
  • HSN Code: 8204
  • GST Rate: 18%
  • Description: Hand-operated spanners and wrenches made of forged steel

This ensures your invoices are GST-compliant and professional.

HSN Code for Export of Hand Tools

When exporting hand tools from India, the same HSN codes apply — but they help beyond just GST.

Exporters use these codes for:

  • Customs clearance
  • Shipping documentation
  • Import-export declarations
  • Identifying applicable duties in destination countries

For example, if you are exporting ratchet spanners or plier sets to another country, the HSN code 8204 or 8203 will be used to declare the product at customs.

Tips for Using HSN Codes Correctly

  1. Match Product Description Carefully:
    Always confirm that your product description matches the HSN heading. For instance, a wrench and a screwdriver may have different HSN codes even though both are hand tools.
  2. Check GST Updates:
    The GST council sometimes updates HSN codes or tax rates. Visit cbic.gov.in or gst.gov.in for the latest notifications.
  3. Use Proper Invoice Format:
    Always include:
    • Product name
    • HSN code
    • Quantity
    • GST rate
    • Total amount
  4. Avoid Guesswork:
    If unsure, consult your accountant or refer to the CBIC HSN code list to ensure accuracy.

Frequently Asked Questions (FAQ)

Q1: What is the HSN code for hand tools?
👉 The general HSN code for hand tools is 8205, covering spanners, pliers, hammers, screwdrivers, and similar tools.

Q2: What is the GST rate for hand tools in India?
👉 Most hand tools attract 18% GST under the Indian GST structure.

Q3: Do I need to mention HSN code on every invoice?
👉 Yes, if your business turnover is above ₹5 crore annually, you must mention the HSN code on all invoices.

Q4: Are tool kits considered hand tools under HSN code 8206?
👉 Yes, tool kits that include multiple hand tools for retail sale fall under HSN code 8206.

Conclusion

Understanding the HSN code for hand tools is not just about compliance — it’s about doing business the right way. Whether you’re manufacturing wrenches in Ludhiana, exporting tool kits to the Middle East, or selling pliers online, using the correct HSN code ensures transparency, smooth trade, and proper GST filing.

So, the next time you prepare an invoice or register a product for export, remember that the right hand tools HSN code (8205) is the key to staying compliant and professional in your business operations.