If you’re involved in the manufacturing, wholesale, retail, or e-commerce business of stainless steel dustbins, understanding the correct HSN code and applicable GST rate is not just helpful—it’s essential.
Even a small mistake in classification or tax rate can result in:
- GST penalties
- Loss of input tax credit
- Audit complications
This guide simplifies everything you need to know about HSN codes and GST rates for stainless steel dustbins in India. Whether you’re a beginner or a seasoned business owner, this information will help you remain 100% compliant with GST laws.
Understanding HSN Codes for Stainless Steel Dustbins
What is HSN?
The Harmonized System of Nomenclature (HSN) is an international product classification system developed by the World Customs Organization (WCO). It is used to:
- Categorize goods systematically.
- Facilitate international trade.
- Standardize tax administration.
India adopted HSN codes under the GST regime to make the classification of goods uniform and consistent.
Why HSN Codes Are So Important Under GST
Correctly applying the HSN code ensures:
- Proper GST rates are applied.
- No mismatch in e-way bills, invoices, or returns.
- Input Tax Credit (ITC) is not blocked or denied due to classification errors.
Correct HSN Code for Stainless Steel Dustbins
The stainless steel dustbins fall under the HSN code:
7323 99 90
Breakdown:
- 73: Articles of iron or steel.
- 7323: Table, kitchen, or household articles of stainless steel.
- 732399: Other household articles not specifically mentioned.
- 73239990: Other items under this subheading, like stainless steel dustbins.
📝 Note: This code generally applies to household-use bins. For large-scale or industrial bins, there may be some deviation depending on the design and function. Always consult a tax advisor.
GST Rate on Stainless Steel Dustbins
Current GST Rate
Standard GST Rate: 18%
This includes:
- 9% CGST (Central GST)
- 9% SGST (State GST)
or - 18% IGST (Integrated GST) in case of interstate supply
This rate applies to:
- Household dustbins
- Bins used in commercial spaces like offices, malls, hospitals
⚠️ Always verify with the official GST Rate Schedule to stay up-to-date.
How to Calculate GST on Stainless Steel Dustbins
Let’s break this down with a real example:
- Product Price: ₹2,000
- GST Rate: 18%
GST Amount = ₹2,000 × 18% = ₹360
Total Price (including GST) = ₹2,000 + ₹360 = ₹2,360
This amount should be clearly mentioned in the tax invoice.
Understanding Input Tax Credit (ITC)
If you’re a registered business, you can claim back the GST you paid on purchases through Input Tax Credit.
Example:
- You buy dustbins from a manufacturer at ₹2,000 + 18% GST (₹360)
- You sell the dustbins for ₹2,500 + 18% GST (₹450)
- ITC = ₹360, and you pay only ₹90 to the government
💡 Always keep clean records of your purchase invoices to claim ITC without trouble.
Factors That Can Influence HSN Code & GST Rate
1. Material Composition
- 100% Stainless Steel: HSN code remains 73239990
- Plastic or FRP Mix: May fall under a different HSN code and GST rate (possibly 12% or 18%)
2. Size & Capacity
- Generally, size doesn’t change classification.
- Industrial Bins (very large or specialized) might be classified under different sub-categories depending on use.
3. Usage Purpose
- Household or commercial use = 73239990
- Medical Waste Bins or Hazardous Waste Containers may require different classification.
Always check if the use case shifts the HSN bracket.
Real-World Examples & Case Studies
Case Study 1: Small Retailer in Mumbai
A local store in Mumbai sells household stainless steel dustbins under the brand “CleanHome.” They:
- Use HSN 73239990
- Apply 18% GST on all invoices
- Maintain purchase invoices to claim ITC
Result? ✅ Full GST compliance and clean books.
Case Study 2: E-commerce Seller on Amazon/Flipkart
An online seller offering a range of dustbins from 5L to 60L uses:
- HSN 73239990
- Correct product labeling for GST
- Auto-calculates 18% GST at checkout
Their marketplace avoids suspension or disputes over wrong tax setup.
Expert View: Mr. Ankit Sharma, Chartered Accountant
“We’ve seen many clients facing notices from GST authorities just because of wrong HSN codes. Even if it feels like a small detail, it matters a lot in GST compliance.”
“Always cross-verify your code with updated notifications and industry-specific cases.”
Tips for Accurate HSN Code & GST Compliance
1. Maintain Proper Documentation
- Invoices with correct HSN & GST rate
- Supplier GST details
- Proof of ITC claims
2. Stay Updated
- Follow GST Council updates
- Subscribe to newsletters from CBIC, GSTN, or professional firms
- Attend webinars or local seminars
3. Consult a GST Expert
- Especially if your dustbins are custom-made, imported, or have mixed materials
- Avoid misclassification penalties
Conclusion: Accuracy Saves You Time & Money
Using the correct HSN code (73239990) and applying the right GST rate (18%) on stainless steel dustbins is a vital part of doing business in a legal and organized manner.
✔️ You stay compliant
✔️ You avoid GST penalties
✔️ You can claim ITC smoothly
Before finalizing your invoices, always take a moment to double-check your HSN and GST setup. And when in doubt, speak with a professional—it could save you from big headaches later.
Read Also:
- Guide to GST Filing for Manufacturers
URL:/gst-filing-guide-for-manufacturers - Top 10 Stainless Steel Dustbins for Commercial Use
URL:/best-stainless-steel-dustbins-commercial - How to Claim Input Tax Credit (ITC) in GST
URL:/input-tax-credit-gst-guide - HSN Code Lookup Tool for Industrial Products
URL:/hsn-code-lookup-industrial-products
