Chapter 84 - GST Rates and HSN Code for Ball Bearings in India

• Ball bearings fall under HSN Code 8482 and attract 18% GST.
• Businesses must register for GST, issue proper invoices, and file GSTR-1, GSTR-3B, and GSTR-9 to stay compliant.
• Manufacturers and traders can claim input tax credit (ITC) on ball bearings used for taxable supplies, reducing overall tax costs.
• Required for shipments above ₹50,000, ensuring smooth logistics and compliance.
• The 18% GST increases costs for buyers, but ITC helps offset the burden for businesses.

Ball bearings are essential mechanical components used across industries like automotive, manufacturing, heavy machinery, aerospace, and industrial equipment. They reduce friction and improve the efficiency of rotating parts. Given their widespread use, ball bearings are subject to GST in India under specific HSN (harmonised system of nomenclature) codes.For manufacturers, traders, and importers, understanding GST rates, HSN classification, compliance, and input tax credit (ITC) benefits is crucial for accurate tax calculations and regulatory adherence.
This guide provides a detailed breakdown of GST rates for ball bearings, classification rules, compliance requirements, and their impact on pricing.

Ball bearings are vital components in various industries, including automotive, manufacturing, aerospace, and heavy machinery. They play a crucial role in reducing friction between moving parts, enabling smooth and efficient mechanical operations.Under India's Goods and Services Tax (GST) system, ball bearings are classified under specific HSN codes, which determine the applicable tax rate. Most types of ball bearings fall under HSN Code 8482 and attract an 18% GST rate.For businesses involved in the manufacturing, trading, or import of ball bearings, it is essential to understand the correct HSN classification and GST implications to ensure tax compliance, optimise costs, and claim Input Tax Credit (ITC)where applicable.

Ball bearings fall under Chapter 84 of the HSN Code, which covers machinery and mechanical appliances. The table below provides the relevant HSN Code and GST rate applicable to ball bearings and their parts:

This classification applies to various types of ball bearings, including:

Deep Groove Ball Bearings

• Used in electric motors, gearboxes, and pumps
• Designed for high-speed operations and minimal friction
• Commonly found in automotive and industrial machinery

Angular Contact Ball Bearings

• Designed for high-speed and high-precision applications
• Used in machine tools, turbines, and aerospace applications
• Capable of handling combined radial and axial loads

Thrust Ball Bearings

• Specially designed to handle axial loads
• Used in automotive transmissions, gear systems, and crane hooks
• Suitable for low-speed applications where thrust forces are high

Self-aligning Ball Bearings

• Ideal for applications where shaft misalignment may occur
• Used in conveyors, agricultural equipment, and textile machinery
• Offers high durability and reduces wear and tear

The 18% GST rate applies to all these types of ball bearings as well as their parts and accessories.

The 18% GST rate for ball bearings is determined based on several factors:

Industrial and Commercial Use

Ball bearings are primarily used in manufacturing, heavy machinery, and industrial applications. Since they are essential components in production and machinery, they fall under a standard GST tax bracket for mechanical equipment.

Precision Manufacturing and High-Quality Materials

The production of ball bearings involves:

• Precision engineering to meet stringent industrial standards
• High-quality metals and alloys to ensure durability and performance
• Advanced manufacturing processes, including heat treatment and lubrication

Due to the complexity and quality control involved, they are taxed at a higher rate compared to basic raw materials.

The 18% GST slab ensures standardised taxation across mechanical and industrial components. This prevents classification disputes and maintains a uniform tax structure for the industry.

Impact on Pricing and Business Costs

Since ball bearings attract 18% GST, businesses purchasing them for use in manufacturing or resale can claim an input tax credit (ITC). However, for end consumers or small businesses that are not GST-registered, this tax increases the final price of ball bearings.

Businesses involved in the sale or manufacture of ball bearings must adhere to GST regulations to ensure smooth operations and tax compliance.

Who Needs to Register for GST?

GST registration is mandatory for businesses that:

• Have an annual turnover exceeding ₹40 lakh (₹20 lakh for special category states).
• Engage in inter-state trade of ball bearings.
• Operate as importers, exporters, or e-commerce sellers of ball bearings.

Tax Invoicing Requirements

A GST-compliant invoice must include:

• Invoice number and date
• Seller and buyer GSTIN (if applicable)
• HSN Code (8482)
• Description of goods (e.g., ball bearings, roller bearings)
• Quantity and unit price
• Applicable GST rate (18%)
• Total value, tax amount (CGST + SGST or IGST), and final payable amount

GST Return Filing

Registered businesses must file periodic GST returns, including:

Late filing attracts penalties, including ₹50 per day (₹25 CGST + ₹25 SGST) and 18% annual interest on unpaid tax.

Businesses can claim Input Tax Credit (ITC) on GST paid for ball bearings purchased for resale or use in manufacturing.

Eligibility for ITC

• Ball bearings must be used for taxable supplies.
• A GST-compliant invoice is required.
• The supplier must have reported the transaction.
• The business must be GST-registered and up to date with return filings.

When ITC Cannot Be Claimed

• If ball bearings are used for personal or non-business purposes.
• When purchased from unregistered suppliers without proper documentation.
• If the business operates under the GST composition scheme, where ITC claims are not allowed.

E-Way Bill Requirements for Transporting Ball Bearings

An e-yay bill is required for transporting ball bearings if the consignment value exceeds ₹50,000 for inter-state movement.

How to Generate an E-Way Bill?

• Visit ewaybillgst.gov.in
• Enter invoice details, transporter details, and HSN code (8482).
• Generate and print the e-way bill for transport.

Validity of E-Way Bills:

Failure to generate an E-Way Bill can result in penalties up to ₹10,000 or seizure of goods.

The implementation of GST has significantly influenced the pricing of ball bearings, impacting both businesses and end-users. Here's how GST affects manufacturers, traders, and industries relying on ball bearings: For Manufacturers & Traders:

• ITC helps offset tax costs, reducing the overall financial burden.
• GST compliance ensures a seamless supply chain and prevents tax penalties.

For Consumers & Industries:

• The 18% GST rate increases the overall cost of ball bearings for end-users.
• Businesses pass on GST charges to customers, affecting pricing in the manufacturing, automotive, and machinery sectors.

Understanding GST rates and HSN codes for ball bearings is essential for manufacturers, traders, and industrial buyers. With an 18% GST rate under HSN Code 8482, businesses must ensure proper compliance, accurate invoicing, and timely GST return filing.Claiming input tax credit (ITC) can help reduce costs, while adherence to E-Way Bill regulations ensures smooth logistics.For businesses dealing in ball bearings, maintaining GST compliance is key to optimising tax liability and ensuring uninterrupted operations. Use a GST Calculator to accurately determine your tax liability and maximise ITC benefits.