In India’s GST (Goods and Services Tax) system, HSN Code 9987 is essential, especially for companies that provide installation, repair and maintenance services. This broad category encompasses a wide range of service offerings that are necessary in different industries to guarantee the effective operation of machinery, infrastructure, and equipment. Businesses must use the code to accurately categorize their services for tax purposes and make sure they are abiding by the GST regulations.
What is HSN Code 9987?
Services falling under the maintenance, repair, and installation categories are coded with HSN 9987. These services are essential for maintaining and effectively operating a variety of assets, including office equipment, cars, machinery, and home appliances. Repairing damaged equipment, cleaning gear, and offering installation services for new systems and devices are just a few of the many tasks covered by the code.
Why is HSN Code 9987 Important?
It is simpler to ascertain the accurate GST rate that applies to services provided when enterprises are properly classified under HSN Code 9987, which guarantees compliance with GST legislation. Additionally, it enables businesses to better manage their inventory and accounting systems, which guarantees efficient tax filing procedures and compliance with tax laws.
Businesses providing services in a variety of industries, such as manufacturing, electronics, and construction, must also understand HSN Code 9987 in order to differentiate between various service categories and the associated tax liabilities. Additionally, this reduces the possibility of fines during tax audits by ensuring that companies do not over report or underreport services.
Services Covered Under HSN Code 9987
Numerous industries and a wide range of services are covered by HSN Code 9987. The services are divided into groups according to the kind of machinery or equipment that needs to be installed or maintained. HSN Code 9987 covers a number of typical services, such as:
1. Maintenance and Repair Services
- Repairs of fabricated metal products (excluding machinery): These include repairing metal products used in construction or manufacturing.
- Repairs of office and accounting machinery: This includes services related to repairing computers, printers, and other office equipment.
- Repairs of electrical household appliances: Includes the repair of everyday household appliances such as refrigerators, air conditioners, and washing machines.
- Repairs of transport machinery and equipment: This category includes vehicle repair services, such as cars, trucks, buses, and other transport machinery.
2. Installation Services
- Installation of industrial machinery: This includes installation services for heavy-duty machinery used in manufacturing and construction industries.
- Installation of office equipment: These services are related to the setup and installation of equipment such as computers, printers, and photocopy machines in office environments.
- Installation of medical machinery: The installation of high-precision medical devices such as MRI machines, X-ray machines, and other medical instruments is covered under this category.
- Installation of electrical and electronic equipment: This includes the setup and installation of electrical machinery such as transformers, circuit breakers, and home appliances.
GST Rate for HSN Code 9987 Services
The GST rate for services under HSN Code 9987 is generally set at 18%, which is applicable to most maintenance, repair, and installation services. However, it is important to note that certain sub-categories may have different tax rates or exemptions depending on the nature of the service and the business offering it. Your business related HSN codes must be filled at the time of filing new GST registration online at GSTIN portal in India. The GST rates for services under this code are broken down into various categories, as outlined in the table below
GST Rate with HSN Code 9987 Categories
| Service Type | Description | GST Rate |
| maintenance of manufactured metal goods | services pertaining to metal product maintenance (apart from machines). | 18% |
| Maintenance of office machinery and computers | Includes repairs of office equipment, such as computers and printers. | 18% |
| Maintenance of transport machinery | Repairs for vehicles, buses, and other transport equipment. | 18% |
| Installation of industrial machinery | Installation services for factory or industrial equipment. | 18% |
| Repair services for household appliances | Repair services for electrical appliances used in homes. | 18% |
| Maintenance of musical instruments | Includes tuning, repairing, and servicing of musical instruments. | 18% |
| Installation of office machinery | Setup and installation of office equipment and machinery. | 18% |
Key Subcategories Under HSN Code 9987
HSN Code 9987 is further divided into specific subcategories that deal with various types of services. These subcategories help businesses identify their services more accurately, ensuring they comply with the correct GST classification. Below are some key subcategories:
- 998711: Services for the upkeep and repair of manufactured metal goods (apart from machinery and equipment). This covers services for fixing metal goods used in many sectors.
- 998721: Repair services for leather products and shoes that include repairing damaged leather items.
- 998725: Repair services for bicycles, which involves maintaining and fixing bicycles.
- 998739: services for installing a range of products, including professional instruments, medical equipment, and industrial machines.
How Businesses Benefit from Understanding HSN Code 9987
- GST Compliance: Understanding the proper application of HSN Code 9987 ensures businesses comply with GST laws. It helps determine the appropriate tax rates and avoid penalties during tax audits.
- Accurate Invoicing: Correctly classifying services under the right subcategory ensures businesses issue accurate invoices and meet legal requirements. This also avoids discrepancies between businesses and tax authorities.
- Efficient Inventory Management: Businesses offering repair, maintenance, and installation services can effectively track their inventory and manage service-related supplies by understanding the different categories under HSN Code 9987.
- Informed Decision Making: Accurate knowledge of HSN Code 9987 helps business owners make informed decisions about pricing, service offerings, and tax compliance. It also supports better strategic planning for business expansion and growth.
Conclusion
By understanding the different subcategories under this code, businesses can ensure that they classify their services correctly, comply with tax laws, and make informed decisions. For businesses in industries such as manufacturing, electronics, and automotive repair, HSN Code 9987 is crucial for managing their services and taxes effectively.
A thorough understanding of this regulation can help firms avoid expensive errors and offer a road map for efficiently managing GST compliance. To fully comprehend the intricacies of HSN Code 9987 and how it relates to your particular business operations, make sure you speak with an expert.
FAQs
1. What services are covered under HSN Code 9987?
HSN Code 9987 applies to a wide range of services related to maintenance, repair, and installation that do not involve construction activities. The code includes services like repairing machinery, electrical appliances, telecommunication equipment, furniture, and providing installations for various industrial and office machinery.
2. What are the GST rates applicable for HSN Code 9987?
The services covered under HSN Code 9987 are generally taxed at a rate of 18%. This includes the repair and maintenance of goods like electrical appliances, furniture, machinery, musical instruments, and the installation of industrial equipment.
3. Is there any exception to the GST rate under HSN Code 9987?
Yes, there are some specific services under HSN Code 9987 that might have different GST treatments. For instance, services related to housekeeping, plumbing, and minor carpentry may attract lower GST rates or even exemptions under certain conditions.
4. How does HSN Code 9987 affect service providers?
Service providers who offer maintenance and repair services or installations must classify their services under the correct SAC codes under HSN Code 9987. They must also ensure to apply the correct GST rate (usually 18%) for compliance and accurate invoicing.
5. What types of businesses commonly use HSN Code 9987?
Many industries utilize HSN Code 9987, particularly those involved in maintenance and repair services, such as companies offering mechanical repairs, electrical installations, and machinery servicing. Businesses in fields like IT support (for computer repairs), vehicle servicing, and industrial machinery upkeep would use this code.
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