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Key Highlights:
- Most watches, clocks, and their components fall under the 18% GST regime.
- High-end luxury watches are accompanied by an extra cess or customs duty when imported.
- Correct classification of the HSN code is of prime importance when it comes to compliance and taxation.
- This is where the GST rate has simplified tax procedures for both manufacturers and consumers.
Goods and Services Tax (GST) is the modern, simplistic ruling system of India that cages every good and service into various niches through the harmonised system of nomenclature or HSN codes.The codes of Chapter 91 are directly associated with clocks, watches, and their parts. Mismanagement of the GST code and directive issuing can affect makers, retailers, and importers of clocks and watches. Also Read - Know the impact of GST on small and medium enterprises
HSN code for Watches, Clocks, and Parts
HSN stands for harmonised system of nomenclature, which implies systematically classifying goods for taxation and trade regulation.Given below are some of the chief HSN codes as they relate to Chapter 91:
| HSN Codes | Export and Import HSN Codes | Products Description | Rates (%) |
| 9101 | 91011100, 91012100, 91011900, 91012900, 91019120, 91019110, 91019190, 91019920, 91019910, 91019990 | Highly finished pocket watches, wrist watches, and timepieces such as stopwatches, contained in cases of precious metal or entirely covered with a precious metal casing. | 18% |
| 9102 | 91021100, 91021900, 91021200, 91022900,91022100, 91029110, 91029190,91029120, 91029910, 91029990, 91029920 | Watches not enumerated under 9101 such as wrist, pocket, and stopwatch. | 18% |
| 9103 | 91031000, 91039000 | Clocks for watches except heading 9104. | 18% |
| 9104 | 91040000 | Dashboard clocks and similar clocks for cars, airplanes, spacecraft, or vessels. | 18% |
| 9105 | 91051100, 91052100, 91052900,91051900, 91059100, 91059990, 91059910 | Other clocks | 18% |
| 9106 | 91061000, 91069000 | Time-recording machines and those that automatically measure, record, or indicate time intervals by synchronous motors or clock or watch movement (such as timer registers and time recorders). | 18% |
| 9107 | 91070000 | Time switches with machines using the synchronous motor, clock mechanism, or watch. | 18% |
| 9108 | 91081100, 91081200, 91082000, 91089000,91081900 | Watch movements set, complete, and assembled | 18% |
| 9109 | 91091000, 91099000, 91091090 | Assembled clock movements with complete mechanisms. | 18% |
| 9110 | 91101100, 91101200, 91109000, 91101900 | Clock movement sets, unassembled or disassembled, or partially assembled watches or clock movements. This will also comprise "rough" watches or clock movements. | 18% |
| 9110 | 91101100, 91101200, 91101900, 91109000 | Unassembled or partially assembled complete watch movements (movement sets) and also include cases for finished and semi-finished watch movements. | 18% |
| 9111 | 91111000, 91112000, 91119000, 91118000 | Watch rest case and its parts | 18% |
| 9112 | 91122000, 91129000 | The clock rests, as for chapter items corresponding to others, with cases and their parts. | 18% |
| 9112 | 91122000, 91129000 | Cases for other machines and their components, other than clock cases. | 18% |
| 9113 | 91131000, 91132010,91139010, 91139090, 91132090 | Watchbands, bracelets, straps, and other components. | 18% |
| 9114 | 91141010, 91141020, 91143010, 91143020,91142000, 91144010, 91144020, 91149091, 91149092, 91149030 | Other watch parts or clock | 18% |
Also Read - GST has some demerits too. Find out what they are
Understanding GST rates and HSN Codes for Watch Businesses
Businesses and consumers alike need to understand the watch GST rate and the watch HSN code . Most of the products in Chapter 91 attract 18% GST, so manufacturers and retailers must ensure proper classification to be tax regulated.Be it luxury watches, regular wristwatches, or clock parts, the correct application of the HSN code and GST rates will allow for a smooth and hassle-free taxation process. You will be able to categorise your products correctly and file an error-free return. If you want help with GST calculation, you can use the GST calculator. An online tool, the calculator helps you find your GST liability in seconds. So, use the GST calculator, find your liability and file your GST returns on time for hassle-free operations.
FAQS - FREQUENTLY ASKED QUESTIONS
What is the GST rate for wristwatches in India?
The watch GST rate in India is 18%. It applies to precious metals on watches (HSN code 9101) and watches made of base metals (HSN code 9102). The business and retail sales of watches should take that amount into account.
Is GST treated differently for wall clocks than for wristwatches?
No, wall clocks come under HSN code 9105, and they, too, attract the same 18% GST rate as wristwatches. Whether electric or non-electric, the GST rate is the same.
Do luxury watches attract higher taxes?
Yes. Beyond 18% GST, luxury watches may attract an additional cess. More commonly, these premium kinds of luxurious watches are taxed more due to being made of precious metals, gemstones, or advanced technology.
Is the used watch included in the GST?
Used watches are subjected to GST when resold. The tax applies to the practical value of the watch; those in the resale business for watches must also comply with GST.
Do watch straps and bands attract GST rates?
Watch straps, bands, and bracelets are classified under HSN code 9111 and are liable to a GST of 18%. This applies to a strap made of leather, metal, plastic, or any other material.
How can I establish the correct watch HSN code for a product?
You can refer to Chapter 91 of the GST classification manual or consult a tax professional to find the correct watch HSN code. The determination of the correct watch HSN codes will ensure compliance on the part of the taxpayer, thereby avoiding penalties.
Are imported watches subject to taxation?
Yes, in addition to 18% GST, imported watches attract customs duties. The actual rate depends upon the originating country and the respective type of watch.
Will I be able to claim input credit on watches?
Yes, input tax credits are allowed on GST on watches purchased for business purposes by those engaged in resale. This offsets the tax burden altogether and results in better cash flow.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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