What is the GST rate for engineering and fabrication units?
GST for engineering and fabrication units: most goods and services here are taxed at 18%. The table gives each item's HSN or SAC code, the GST rate entries in force on 1 November 2026, and the rate before 22 September 2025 where GST 2.0 changed it. Open an item for every entry, its conditions and the CBIC notification.
In the free BooksOn HSN app, pick your business (kirana, medical store, hardware, engineering unit…) to see the HSN code and GST rate of the items it usually sells, makes or buys. Works offline, no ads.
Items, codes and GST rates
Choosing the right code
- A part made for one kind of machine is classified with that machine's parts (Note 2 to Section XVI of the Customs Tariff): pump parts 8413 91, compressor parts 8414 90, machine-tool parts 8466.
- Parts of general use (Note 2 to Section XV) keep their own heading even when made for a machine: bolts and nuts 7318, springs 7320, chains 7315. So do parts that have their own heading in Chapter 84 or 85 (Note 2(a) to Section XVI), such as bearings 8482, gears and shafts 8483, and valves 8481.
- Job work on a customer's material (machining, fabrication, plating, heat treatment) is a service, SAC 9988: 18% since 22 September 2025 (it was 12% for a registered customer, 18% for an unregistered one).
- Scrap you sell is taxed like other goods (iron, aluminium and copper scrap 18%); metal scrap you buy from an unregistered seller is under reverse charge, so you pay the GST (Notification 4/2017-Central Tax (Rate), S. No. 8, inserted by Notification 6/2024-Central Tax (Rate) from 10 October 2024); and a sale of scrap may also carry TCS under the Income-tax Act: see the TDS/TCS calculator.
Other GST rules for these items
- If someone not registered for GST sells metal scrap to a business registered for GST, the buyer pays the GST, not the seller. (Notification 6/2024-CT(R), entry 8)
- If a transport company carries goods by road for a factory, society, co-operative society, company, firm or GST-registered business, the customer pays the GST. This does not apply if the transporter opted to charge GST itself (conditions apply). (Notification 8/2023-CT(R), entry 1)
- A seller of metal scrap must register for GST once its turnover crosses the registration limit, even if the buyer pays all the GST under reverse charge. (Notification 6/2026-CT, entry (iv))
- A GST-registered business buying metal scrap from another registered business deducts 2% GST TDS (1% CGST + 1% SGST, or 2% IGST) from its payment when the contract is above ₹2.5 lakh. (Notification 7/2026-CT, entry (d)(iv))
Billing tips
- Put at least 4 digits of the HSN code on B2B invoices if your aggregate turnover in the previous year is up to ₹5 crore, 6 digits above that (Notification 78/2020-Central Tax).
- Where an item shows two rates, the rate depends on the exact code or a condition (for example packed and labelled, or a price limit) — check the item page.
- Charge CGST + SGST within your state and IGST to another state. Work out the tax with the GST calculator.
- For any other item, use the GST Rate Finder; for an old invoice, the rate on its date is in the free BooksOn HSN app.
Guides for other trades
- GST rates by business
- Kirana and grocery shops
- Supermarkets and department stores
- Hardware and building material shops
- Electrical shops
- Construction contractors and builders
- Real estate developers and property dealers
- Petrol bunks and fuel stations
- Textile, garment and footwear shops
- Electronics and mobile shops
- Restaurants, hotels and caterers
- Sweet shops and namkeen stalls
- Bakeries and cake shops
- Fruit and vegetable shops
- Dairy and milk shops
- Meat, chicken and fish shops
- Medical stores and pharmacies
- Stationery and book shops
- Auto parts shops and garages
- Salons and beauty parlours
- Jewellery shops
- Furniture and home furnishing shops
- Fertiliser, seed and pesticide shops
- Transporters and logistics firms
- CAs, lawyers, consultants and IT firms
- Tool rooms and tool dealers
- Auto and two-wheeler component makers
- Plastic moulding units
- Electrical equipment makers
- Electronics manufacturers
- Pharmaceutical manufacturers
- Chemical manufacturers and dealers
- GST rate changes 2026
- GST rate changes 2025: old and new rates
Rates from the BooksOn HSN dataset (version 9), compiled from CBIC notifications, checked on 1 November 2026. Reference only: confirm the entry in the notification before invoicing.
