Navigating GST compliance starts with understanding the correct HSN (Harmonized System of Nomenclature) code for your products. One such code that often raises questions among businesses in flooring and construction materials is HSN Code 3918. This article explains what products fall under HSN code 3918, their applicable GST rates, and key compliance tips for smooth tax filing.


What is HSN Code 3918?

HSN Code 3918 pertains to plastic-based floor coverings. It falls under Chapter 39 of the HSN classification, which deals with plastics and articles thereof. Specifically, this code includes floor coverings made of plastic in rolls or tiles, whether or not self-adhesive.

These products are primarily used in residential, commercial, or industrial flooring where durable, waterproof, and easy-to-maintain solutions are required.


Products Covered Under HSN Code 3918

HSN Code 3918 includes the following plastic-based products:

  • PVC floor tiles and rolls

  • Vinyl flooring sheets

  • Plastic laminated floor coverings

  • Self-adhesive plastic floor coverings

  • Cushioned vinyl flooring

  • Plastic carpet tiles and mats

  • Homogeneous and heterogeneous vinyl sheets

These materials are used extensively in offices, hospitals, schools, and homes for their affordability and resilience.


3918 HSN Code GST Rate Explained

Understanding the GST rate is crucial for accurate billing and tax compliance. As per the GST Council updates:

Product Type GST Rate
Plastic floor coverings (rolls/tiles/sheets) 18%
  • The 18% GST rate is uniform across most of the items classified under HSN 3918.

  • This rate includes CGST at 9% and SGST at 9% (or IGST at 18% for interstate transactions).


Key Notes for Dealers and Manufacturers

  1. Input Tax Credit (ITC):
    Businesses dealing in plastic floor coverings can claim ITC on raw materials like PVC resins, additives, and manufacturing equipment, provided they follow proper documentation and filing.

  2. Correct Invoicing:
    Always mention HSN Code 3918 clearly in your invoices to avoid mismatches in GST returns.

  3. e-Invoicing & E-Way Bill:
    If your turnover exceeds the prescribed limit (currently ₹5 crore for most businesses), ensure e-invoicing compliance and generate E-Way Bills for transportation of goods.

  4. HSN Code Usage in Returns:
    Businesses with turnover above ₹5 crore must mention 6-digit HSN codes in GSTR-1 and GSTR-3B.


Common Filing Mistakes to Avoid

  • Using the wrong HSN code like 3920 or 3919, which cover different types of plastic sheets or self-adhesive films.

  • Charging incorrect GST rates leading to underpayment or overcharging.

  • Not availing input credit due to improper invoice matching or vendor non-compliance.


How Busy Can Help

Busy Accounting Software simplifies GST compliance for businesses dealing with floor coverings and similar products. With Busy, you can:

  • Automatically apply the correct GST rate based on HSN code

  • Track input credits in real-time

  • Generate error-free GST invoices and returns

  • Integrate e-invoicing and E-Way Bill seamlessly


Conclusion

Understanding the 3918 HSN code GST rate is essential for businesses involved in the supply of plastic floor coverings. With an 18% GST rate applicable across this category, businesses must ensure proper classification, billing, and return filing. Leverage tools like Busy to automate compliance and avoid costly mistakes.

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