HSN code 9987 – All you need to know

HSN code 9987 pertains to maintenance, repair, and installation (except construction). This code encompasses a wide range of services related to the upkeep, repair, and installation of machinery, equipment, and other physical assets. Businesses providing these services must use HSN code 9987 to classify their offerings correctly under GST regulations.

HSN code of some most popular repair and maintenance services

What is repair and maintenance under GST?

1. Definition: Repair and maintenance under GST refer to services aimed at restoring or maintaining the functionality of machinery, equipment, and other assets.
2. GST application: These services are classified under specific HSN codes and attract GST based on the nature of the service.
3. Compliance: Businesses must accurately classify their services under the correct HSN codes to ensure compliance with GST regulations.
4. Invoicing: Proper invoicing with the right HSN code is crucial for input tax credit claims.
5. Sector impact: Affects various sectors, including automotive, electronics, and industrial machinery.

HSN code for repair, maintenance, and installation service

Benefits of using the correct HSN code for repair, maintenance, and installation service

• Compliance: Ensures adherence to GST regulations, avoiding penalties.
• Input tax credit: Facilitates accurate input tax credit claims.
• Transparency: Enhances clarity in billing and accounting.
• Customer trust: Builds confidence among customers due to accurate and transparent invoicing.
• Financial management: Aids in better financial planning and management for businesses who seek business loans.

Conclusion

Using the correct HSN code for repair, maintenance, and installation services is crucial for businesses operating in India. It ensures compliance with GST regulations, facilitates accurate input tax credit claims, and enhances transparency in financial transactions. Proper classification under the right HSN code not only builds customer trust but also aids in effective financial management, especially for businesses considering taking a business loan. Accurate invoicing and adherence to GST rules are vital for the smooth operation and financial health of businesses.