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Understanding GST and HSN Codes for Various Types of Fans in India

This article outlines the Goods and Services Tax (GST) implications for various types of fans manufactured and sold in India. It details the applicable HSN codes and GST rates, which are generally 18% for most fan categories. The piece also includes a case study on an Advance Ruling, clarifying the GST classification for industrial fans, and highlights the industry's call for a lower GST rate to boost sales.

📖 3 min read read🏷️ GST Rates

In India, the manufacturing and sale of various fan types are subject to the Goods and Services Tax (GST). This article aims to clarify the GST regulations concerning different fans, including ceiling and wall models, by providing their respective HSN codes and applicable GST rates.

GST Rates and HSN Codes for Fans

The following table provides detailed HSN codes and GST rates for various fan categories:

| Description | HSN Code | GST% ||---|---|---|| Air pumps, vacuum pumps, compressors, fans, hoods with fans for ventilation | 8414 | 18% || Other hand pumps | 84142020 | 5%^ || Table, floor, window, wall, roof or ceiling fans with a self-contained electric motor of an output not exceeding 125 W | 84145150 | 18% || Table fans | 84145110 | 18% || Ceiling fans | 84145120 | 18% || Pedestal fans | 84145130 | 18% || Railway carriage fans | 84145140 | 18% || Wall fans | 84145150 | 18% || Other fans | 84145190 | 18% || Air circulators | 84145910 | 18% || Portable blowers | 84145920 | 18% || Industrial blowers and fans | 84145930 | 18% || Hoods with a maximum horizontal side not exceeding 120 cm | 84146000 | 18% |

^The rate change for "Other hand pumps" is effective from September 22, 2025.

Understanding Advance Rulings in GST

An advance ruling provides taxpayers with clarity regarding the interpretation and application of GST laws for their specific business transactions or activities.

Here is an example of an advance ruling pertinent to the GST rate on fans.

Case Study: M/s. Star Enterprise

M/s. Star Enterprise sought clarification on the GST rate for air circulation fans primarily supplied to poultry farms for livestock ventilation. The application included technical specifications, a sales invoice, and a product brochure. The core question was the appropriate tax rate for fans utilized in poultry operations for air circulation.

Ruling by the AAR Gujarat

The Authority for Advance Ruling (AAR) in Gujarat determined that the applicant's products were industrial-grade fans with electric motors exceeding 125 W output. Consequently, these fans were classified under HSN code 84145930 as industrial fans. The AAR further stated that, effective November 15, 2017, such industrial fans are subject to a CGST rate of 9%, as per the insertion after Serial No. 317B to Schedule III of Notification 1/2017-CT(R) dated June 28, 2017. This led to the conclusion that the total GST rate for these industrial fans is 18%.

Industry Perspective

The Indian Fan Manufacturers Association (IFMA) advocates for a reduction in the GST on fans from 18% to 5%. They believe this reduction would stimulate sales, as manufacturers could transfer the tax savings to consumers through lower retail prices.

Frequently Asked Questions

What is the purpose of an HSN code in GST?
The Harmonized System of Nomenclature (HSN) code is an internationally recognized product classification system used under GST to standardize the identification of goods for taxation purposes, facilitating uniform tax application and easier trade.
How is the GST rate for a product determined in India?
GST rates for products in India are determined by the GST Council, which assigns specific rates (0%, 5%, 12%, 18%, 28%) based on the HSN classification and considering factors like essentiality and luxury.
What are the implications of an Advance Ruling in GST?
An Advance Ruling provides a binding decision by tax authorities on specific GST-related questions posed by taxpayers, offering clarity and preventing future disputes regarding their tax liabilities or input tax credit eligibility.
Can GST rates on essential household items like fans change?
Yes, GST rates on any goods, including household items like fans, can be changed by the GST Council through notifications, typically based on economic considerations, industry demands, or public welfare.
How can businesses ensure compliance with GST regulations for their products?
Businesses can ensure GST compliance by correctly classifying their products with appropriate HSN codes, applying the correct GST rates, maintaining accurate records, timely filing of GST returns, and staying updated with GST Council notifications and amendments.

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