Introduction
GST on traditional musical instruments has often confused artisans and small businesses. In her recent statement, Finance Minister Nirmala Sitharaman clarified which hand-crafted instruments attract zero tax and which ones may still fall under GST. This blog breaks it down clearly.
What Did the Finance Minister Clarify?
- Hand-crafted musical instruments like the mridangam, tabla, veena, sitar, and flute are exempt from GST if they fall under HS Code 9206.
- This supports artisans and preserves India’s cultural heritage.
- However, mass-produced or electric instruments may still attract GST at standard rates.
Reference: As per Notification No. 1/2017-Integrated Tax (Rate) and subsequent clarifications in FAQs by CBIC.
List of Exempt Traditional Instruments
| Instrument | GST Rate |
|---|---|
| Mridangam | Exempt |
| Tabla | Exempt |
| Veena | Exempt |
| Flute | Exempt |
| Sitar | Exempt |
Check CBIC official tariff schedules for detailed HS codes.
What Is Still Taxable?
- Electric guitars, amplifiers, and digital keyboards
- Imported or branded mass-manufactured instruments
- Accessories like strings, tuners, or speakers
Expert Tip: Always verify the exact HS code to claim exemption correctly. Misclassification can lead to penalties.
GST on Musical Instruments: Key Points
- Focus is on traditional hand-crafted items.
- Artisan cooperatives benefit the most.
- Small traders must keep invoices and HS code proof.
Practical Advice for Sellers
- Register under GST if your annual turnover exceeds ₹40 lakh (₹20 lakh in special category states).
- For exempt goods, file returns correctly to avoid mismatch.
- Keep clear records of inventory and sources.
Summary
Finance Minister clarified that traditional hand-crafted musical instruments like mridangam and tabla are exempt from GST under HS Code 9206. Mass-produced or electric instruments still attract GST. Sellers should maintain proper classification and records.
Conclusion
Clear GST guidelines help preserve India’s music heritage while ensuring fair tax practices. Need help with classification or filing? Contact Efiletax for expert GST support today.
FAQ
Q1: Are electronic keyboards exempt from GST?
No. Only traditional hand-crafted instruments under HS Code 9206 are exempt.
Q2: Is GST registration needed for exempt goods?
Yes, if your turnover crosses the threshold, registration is mandatory even for exempt supplies.
Q3: Where can I find the HS code list?
Visit the CBIC Tariff page for official details.