HSN Code for Machinery in India: Industrial, Agricultural & Electrical

HSN codes for machinery in India fall under Chapter 84 for mechanical machinery and Chapter 85 for electrical machinery in the Customs Tariff Act, 1975. Industrial machinery spans headings 8401 through 8487, agricultural machinery sits at 8432-8436, and electrical machinery covers Chapter 85. Basic Customs Duty ranges from 0% to 10% depending on machine type, with GST at 18% on most machinery. The EPCG scheme allows zero-duty import of capital goods if you meet the export obligation.

What are the HSN codes for machinery in India?

Machinery classification starts with a basic split: mechanical machinery goes under Chapter 84, electrical machinery under Chapter 85. Within Chapter 84, the headings run from 8401 to 8487, each covering a specific type of machine based on its function.

Here's how Chapter 84 breaks down for the most commonly imported categories:

• 8401 — Nuclear reactors, fuel elements, isotope separation equipment
• 8402-8404 — Boilers (steam generating, super-heated water, auxiliary plant)
• 8406 — Steam turbines
• 8407-8408 — Internal combustion engines (spark ignition and compression ignition)
• 8413-8414 — Pumps for liquids and air/vacuum pumps, compressors
• 8419 — Machinery for treatment of materials by temperature change (heat exchangers, dryers, evaporators)
• 8425-8428 — Lifting, handling, loading and unloading machinery (pulleys, cranes, conveyors, lifts)
• 8432-8436 — Agricultural and forestry machinery
• 8438-8443 — Food processing, paper/pulp, and printing machinery
• 8444-8453 — Textile machinery (spinning, weaving, knitting, finishing)
• 8455-8463 — Metal working machinery (rolling mills, machine tools, lathes)
• 8471-8473 — Computing machinery and parts
• 8474-8479 — Machinery for working stone, mineral, rubber, plastics, and other general-purpose industrial machinery

The classification logic follows GRI Rule 1: find the heading that most specifically describes the machine's primary function. A machine that spins textile yarn goes under 8445, not under a general-purpose heading like 8479. When a machine performs multiple functions, classify it by its principal function, or by the function that comes last in the tariff if no single function dominates (GRI Rule 3).

Chapter 85 covers electrical machinery and equipment. For importers, the relevant headings include electric motors and generators (8501-8504), transformers (8504), electrical switchgear (8535-8538), and electrical control panels (8537).

How do I classify industrial vs agricultural machinery?

Agricultural machinery has its own dedicated block: headings 8432 through 8436. This matters because agricultural machinery often gets concessional duty treatment that general industrial machinery doesn't.

Here's the split:

• 8432 — Soil preparation machinery (ploughs, harrows, cultivators, seeders)
• 8433 — Harvesting and threshing machinery (mowers, combine harvesters)
• 8434 — Milking machines and dairy machinery
• 8435 — Presses, crushers, and similar machinery for wine, cider, fruit juices
• 8436 — Other agricultural, horticultural, forestry, poultry, bee-keeping machinery

The classification boundary between agricultural and industrial machinery catches people out. A grain dryer designed for farm use falls under 8419 (treatment by temperature change), not under the agricultural block. A pump used on a farm is still classified under 8413 (pumps), not under agricultural machinery. The tariff classifies machines by what they do, not where they're used.

BCD on agricultural machinery under 8432-8436 is generally 5%, compared to 7.5% on most industrial machinery. This 2.5 percentage point gap is small in percentage terms but adds up fast on high-value equipment imports.

For industrial machinery, the BCD rate varies by heading. Most general industrial machinery attracts 7.5% BCD. Some specific categories — particularly machinery not manufactured in India — attract 0% or reduced rates under applicable customs notifications. Always check the latest CBIC tariff notification for the specific heading you're importing under, because rates change with budget announcements.

What is the EPCG scheme and how does it apply to machinery imports?

The Export Promotion Capital Goods (EPCG) scheme lets you import capital goods at zero BCD, provided you meet an export obligation equal to 6 times the duty saved. The scheme is administered by DGFT and applies to machinery, equipment, and other capital goods used in manufacturing or providing services.

Here's how it works in practice. Say you import a CNC machining centre (HSN 8457) with a CIF value of ₹1 crore. Normal BCD at 7.5% would be ₹7.5 lakh. Under EPCG, you pay zero BCD. In return, you must export goods worth 6 times ₹7.5 lakh = ₹45 lakh within the obligation period.

The export obligation period is normally 6 years from the date of authorisation. DGFT extended the deadline to August 31, 2026 for authorisations that were expiring between March and May 2026. This extension was a response to global trade disruptions and gives exporters additional time to fulfil their obligations.

Key conditions for EPCG:

• The imported goods must be capital goods (machinery, equipment, tools, jigs, fixtures, moulds, dies)
• You need an EPCG authorisation from DGFT before importing
• The export obligation is calculated as 6x the duty saved
• Exports must be of goods manufactured or services rendered using the imported capital goods
• Non-fulfilment means paying back the duty saved plus interest

EPCG is worth serious money on high-value machinery imports. On a ₹10 crore machinery import at 7.5% BCD, the duty saved is ₹75 lakh. The catch is the export obligation: ₹4.5 crore worth of exports over the obligation period. For manufacturers already exporting, this is essentially free money. For companies that don't yet export, the obligation needs careful planning.

What are the import duties on machinery in India?

Import duty on machinery in India has three main components: Basic Customs Duty (BCD), Integrated GST (IGST), and Social Welfare Surcharge (SWS).

Basic Customs Duty (BCD): Ranges from 0% to 10% depending on the type of machinery. Most industrial machinery under Chapter 84 attracts 7.5% BCD. Agricultural machinery at 5%. Some categories — particularly those not manufactured domestically — get 0% or reduced rates under specific notifications.

IGST: 18% on most machinery, calculated on the assessable value plus BCD plus SWS. This is the GST equivalent for imports. You can claim this as input tax credit if you're registered under GST and using the machinery for taxable supplies.

Social Welfare Surcharge (SWS): 10% on the BCD amount. On a 7.5% BCD, the SWS adds 0.75%.

Project imports deserve special mention. If you're setting up a new industrial plant or expanding an existing one, heading 9801 allows you to import an entire project's machinery and equipment at a flat 5% BCD. This is often lower than the individual heading rates. The application goes through the relevant sponsoring authority (DPIIT for industrial projects), and you need to get the project import registration before the goods arrive.

Here's what the landed duty looks like on a ₹1 crore machinery import at standard rates:

• CIF value: ₹1,00,00,000
• BCD at 7.5%: ₹7,50,000
• SWS at 10% on BCD: ₹75,000
• Assessable value for IGST: ₹1,08,25,000
• IGST at 18%: ₹19,48,500
• Total duty: ₹27,73,500 (roughly 27.7% of CIF value)

The IGST portion (₹19,48,500 in this example) is claimable as input tax credit. Your effective cash outflow on duties, if you can utilise the ITC, is the BCD plus SWS — about 8.25% of CIF value.

Duty rates as per CBIC Customs Tariff, FY 2025-26. Rates may change with budget announcements and customs notifications.

What are common classification mistakes for machinery imports?

Five errors come up repeatedly:

1. Classifying by use instead of function. A pump used on a farm is still 8413, not agricultural machinery (8432-8436). The tariff classifies by what the machine does, not where it's installed. This trips up first-time importers regularly.

2. Missing the project imports option. Many importers classify each machine individually when they could import the entire set under 9801 (project imports) at a flat 5% BCD. If you're setting up a new plant or a substantial expansion, check if project imports apply before filing individual BoEs at higher rates.

3. Wrong heading for multi-function machines. A machine that both cuts and welds metal needs classification by its principal function under GRI Rule 3. Filing under a general heading like 8479 when a specific heading exists for the primary function leads to duty disputes.

4. Not claiming EPCG when eligible. Companies that export but haven't applied for EPCG authorisation are leaving money on the table. The paperwork takes time, but on a ₹5 crore machinery import, the duty savings at 7.5% BCD amount to ₹37.5 lakh.

5. Confusing Chapter 84 and Chapter 85. Electric motors go under 8501 (Chapter 85), not Chapter 84. But machinery that contains an electric motor as a component is classified under Chapter 84 based on the machine's function, not the motor. A textile spinning machine with a built-in motor is 8445, not 8501.

Frequently asked questions

What is the HSN code for CNC machines?

CNC machines fall under heading 8457 for machining centres, or under 8458-8463 depending on the specific machine type. CNC lathes go under 8458, CNC milling machines under 8459, and CNC grinding machines under 8460. The key is the machining operation, not the CNC control system. BCD is 7.5% across these headings.

Can I import machinery at zero duty under the EPCG scheme?

Yes. The EPCG scheme allows zero BCD on capital goods imports. You need an authorisation from DGFT before importing, and you take on an export obligation of 6 times the duty saved. The obligation period is 6 years from authorisation. For authorisations expiring between March and May 2026, DGFT extended the deadline to August 31, 2026.

What is the HSN code for textile machinery?

Textile machinery covers headings 8444 through 8452. This includes machines for extruding man-made textile fibres (8444), textile fibre preparation (8445), weaving machines/looms (8446), knitting machines (8447), auxiliary machinery for textile machines (8448), and finishing machinery (8451-8452). Printing machinery for textiles falls under 8443.

What are project imports and when should I use them?

Project imports under heading 9801 allow you to import complete plant and equipment at a flat 5% BCD, regardless of the individual heading rates. This is worth it when you're importing multiple machines for a new plant or major expansion, and the individual BCD rates average above 5%. You need registration from the sponsoring authority (typically DPIIT) and must apply before the goods arrive at port.

Has the EPCG export obligation deadline been extended?

Yes. DGFT extended the export obligation completion period to August 31, 2026 for EPCG authorisations that were expiring between March and May 2026. This extension was announced in response to disruptions in global trade and gives authorisation holders additional time to meet their export commitments.

How does Eximoz handle machinery classification?

Getting machinery classification right means checking the specific heading, applicable BCD rate, EPCG eligibility, and whether project imports make more sense than individual classification. That's multiple lookups across CBIC tariff schedules, DGFT notifications, and customs circulars — for every single machine on your import list.

Eximoz automates this. Upload your commercial invoice, and the system classifies each machine to the correct Chapter 84 or 85 heading, calculates the applicable BCD and IGST, and flags whether EPCG or project import rates could save you money. The classification runs against the latest CBIC tariff data, so you're not working off last year's rates.

Importing capital goods? Eximoz classifies machinery and flags EPCG eligibility — so you don't miss zero-duty benefits. eximoz.com

Note: Duty rates and scheme conditions change with budget announcements and DGFT notifications. Verify against the latest CBIC Customs Tariff and DGFT circulars before filing.