If you are raising a purchase order for RFID tags, cards or readers in India, someone in accounts will ask for the RFID tag HSN code before the PO is released. This is a short procurement page on how RFID products are usually classified, what GST rate to expect, and where HSN shows up again on the invoice, the e-way bill and a GeM bid. One caveat up front: this is general information from a manufacturer, not tax advice. Classification is ultimately your supplier’s declaration and your CA’s call — please confirm both before you file anything.
Why HSN codes matter for RFID purchases
HSN (Harmonised System of Nomenclature) is the goods classification that drives GST in India. It appears in four places a buyer touches:
- The tax invoice. Every line item carries an HSN and a rate. As of 2026, businesses above the Rs 5 crore turnover threshold are generally required to show 6-digit HSN on B2B invoices, and smaller ones 4-digit — check the current rule for your turnover band. If your supplier’s HSN and your purchase ledger disagree, input tax credit reconciliation gets messy.
- The e-way bill. Movement of goods above the value threshold (Rs 50,000 nationally, with state variations for intra-state movement) needs an e-way bill, and it carries the HSN and value from the invoice. (RFID also has its own role in e-way bill enforcement — see our note on RFID and e-way bill vehicle compliance.)
- GeM and tenders. GeM product categories are typically tied to HSN, and bid documents often ask the bidder to state HSN and GST rate against each item.
- Imports. The Customs tariff uses the same structure at 8 digits (ITC-HS), and duty is assessed on it.
How RFID products are typically classified
The headings below are the ones we see most often on supplier invoices in India. They are commonly used, not legal determinations. Where we are not certain of the sub-heading, we give the 4-digit heading and say so.
| Product | Heading commonly used | Notes |
|---|---|---|
| UHF/HF/NFC tags, inlays, labels with a chip | 8523 (many suppliers use the 8523 52 “smart cards” sub-heading) | Applies whether the tag is a hard tag, wet inlay or paper-faced label; the chip is what places it here |
| RFID/NFC cards with embedded chip (PVC/PETG) | 8523 (8523 52 sub-heading commonly) | Same logic as tags; blank PVC cards without a chip are a different heading (plastics) |
| Fixed, handheld and desktop readers | 8517 or 8543 — usage varies | Some suppliers treat readers as data-communication apparatus (8517), others as electrical machines with individual functions (8543); confirm on the invoice |
| Reader antennas | 8517 (parts/aerials) or 8529 — usage varies | Depends on how the supplier classifies the reader they pair with |
| RFID label printers | 8443 (printers connectable to a computer) | Sub-heading depends on the printer type |
| Software licences, AMC, encoding services | SAC, not HSN | Services use a 6-digit SAC (99xx). AMC is commonly under 9987 (maintenance and repair); software licensing is often under 9973 or 9983 depending on how it is supplied |
Two things worth knowing. HSN generally follows the chip, not the packaging: an RFID sticker is not usually treated as a paper label under 4821 once it carries an inlay, although some vendors still bill it that way. And frequency does not change the heading — a UHF hard tag from our UHF RFID tags range and an NFC card from our RFID cards range typically sit under the same 8523 heading.
GST on RFID hardware, encoding and AMC
Tags, cards, readers, antennas and printers under the headings above are typically taxed at 18% GST as of 2026. Rates are set by notification and were reported to have been rationalised in 2025, so treat 18% as the expectation, not a guarantee, and check the current schedule for the specific heading before you finalise a budget. For a GST-registered buyer the GST is normally creditable, so the number that matters for comparison is the pre-tax unit price — which is how our RFID tag price guide is written.
Services are simpler: encoding, installation, software subscriptions and AMC are also typically 18%, billed under a SAC. Encoding is worth a specific mention because buyers often ask whether GST applies at all — it does, as a service, unless the supplier has bundled it into the tag price as a composite supply, in which case the rate of the principal supply (the tag) applies to the whole line.
Domestic purchase vs import
Buying from an Indian manufacturer means one GST invoice, one HSN line per product, ITC in the normal course, and no customs paperwork. Importing changes the arithmetic:
- Basic Customs Duty (BCD) on the ITC-HS heading, plus applicable surcharge — BCD is a cost, not creditable.
- IGST on the assessable value plus BCD, at the same rate as domestic GST — creditable for a registered importer.
- WPC ETA. Readers and antennas that transmit in the 865–867 MHz band need Equipment Type Approval from the WPC Wing before import; as of 2026 the delicensed-band route is reported to be a self-declaration on the Saral Sanchar portal, but customs can still hold a consignment that lacks it.
- BIS. Certain electronics and power adapters fall under BIS compulsory registration; check whether the reader’s adapter does.
The BIS and WPC buyer’s guide covers those two touchpoints in detail. Identium’s UHF readers and antennas are WPC-approved for the Indian band and we are BIS certified, so a domestic purchase avoids the ETA question entirely.
Special cases
Garment exporters. Trade press reported in late 2025 that a customs notification allowed bona fide garment exporters to import tags, labels and other trims and embellishments at nil BCD for use in export production, initially with a sunset date in March 2026. Whether that covers RFID tags and labels specifically, and whether it has been extended, is something to confirm with your CHA against the current notification. Even where it applies, it comes with conditions and documentation, and it does not remove IGST on the import or the domestic GST on locally bought tags. Do not price a bid on it without checking.
SEZ and EOU units. Supplies to an SEZ unit for authorised operations are zero-rated under IGST — a supplier can bill without GST under LUT or pay IGST and claim refund. Supplies to an EOU are generally treated as deemed exports: GST is charged and refunded on application. Tell your supplier which regime you are under before the PO, not after the invoice.
Government and GeM. Quote HSN and rate line by line, match the GeM category, and keep hardware, software and AMC as separate items so evaluators can compare like with like.
What to write in your PO or RFQ
- One line per product type, with quantity, unit, HSN and GST rate — do not lump “RFID kit” into one line.
- Software, encoding and AMC on separate lines with SAC.
- Bill-to and ship-to GSTINs, and the delivery state, so place of supply (and IGST vs CGST+SGST) is unambiguous.
- Ask the supplier to confirm HSN in the quotation itself so nobody discovers a mismatch at invoice stage.
Common mistakes
Kits invoiced under one HSN when they contain tags, a reader and a printer; software rolled into a hardware line at the hardware rate; and bill-to and ship-to in different states without telling the supplier, so the invoice comes out with the wrong tax type. None is fatal, but each costs an accounts team days of reconciliation.
FAQ
Is the HSN different for UHF and NFC tags? Typically no — both are chip-bearing tags and usually sit under 8523. Confirm with your supplier.
Do RFID stickers use the paper-label HSN? Not usually. Once a label carries an inlay, most suppliers classify it with tags rather than under 4821. Ask which one your supplier uses and keep it consistent.
Is GST charged on encoding? Yes, typically 18% as a service, unless bundled into the tag price as a composite supply.
What about a printer bought with a reader? Separate lines: printers under 8443, readers under their own heading. See our RFID printers range for the printer side.
Need a quotation with HSN and GST stated line by line, ready for your PO or GeM bid? Contact us on +91 70110 01472 or [email protected] with the delivery state and whether you are an SEZ/EOU unit. Please still run the classification past your CA; this page is a starting point, not a ruling.