Why Rubberised Cork Sheets Fall Under HSN 4504?
HSN Chapter 45 covers cork and articles of cork, including agglomerated cork with or without a binding substance.
Rubberised cork sheets and strips qualify under HSN 4504 when:
- Cork gives the essential character
- Rubber is used mainly as a binder
- The product is supplied as rubber cork sheets, rolls, or strips
- Usage is general industrial sealing or vibration control
With GST 2.0, these products have been shifted to the 5% merit slab, reducing tax burden for manufacturers and OEM buyers.
Rubberised Cork Gaskets: Why GST Is 18%
Rubberised cork gaskets are often shaped, cut, or moulded for sealing applications. When these products function primarily as rubber sealing articles, they are classified under HSN 4016.
Key indicators for HSN 4016:
- Rubber performance dominates over cork
- Product behaves like a vulcanised rubber gasket
- Sold specifically as a gasket or sealing component
Under this category, the applicable GST rate remains 18%, consistent with other industrial rubber articles.
Transformer Gasket Sheets: Special Classification Rule
When rubber cork sheets are:
- Designed specifically for transformers
- Rubber Cork Sheets are Cut or supplied as dedicated transformer components
- Invoiced as part of electrical equipment supply
They fall under HSN 8504, which covers transformers and their parts.
In such cases:
- GST rate is 18%
- Classification depends heavily on billing description and documentation
Input Tax Credit (ITC) on Rubber Cork Products
Businesses registered under GST are eligible to claim Input Tax Credit (ITC) on rubber cork sheets, gaskets, and related products, subject to correct classification and usage.
ITC can be availed when:
- The correct HSN code (4504, 4016, or 8504 as applicable) is mentioned on the invoice
- GST on Rubber Cork Products is charged at the applicable rate (5% or 18%)
- Goods are used for business, manufacturing, or export purposes
- The supplier has filed corresponding GST returns
Correct HSN classification is critical, as wrong tax rates or misclassification may lead to ITC denial or reversal during audits.
GST on Export of Rubber Cork Sheets & Refund Eligibility
Exports of rubber cork sheets, gaskets, and components are treated as zero-rated supplies under GST.
Exporters can choose either of the following options:
- Export under LUT (Letter of Undertaking) without payment of IGST and claim refund of accumulated ITC
- Export with payment of IGST and claim refund of the IGST paid
Key requirements for smooth GST refunds for Rubber Cork:
- Consistent HSN code usage across invoices, shipping bills, and GST returns
- Accurate product description matching the export documentation
- Proper linkage between export invoices and refund applications
Correct classification under HSN 4504, 4016, or 8504, based on product form and billing, helps avoid refund delays or rejections.
Common GST Classification Mistakes to Avoid
- Applying 18% GST to plain rubberised cork sheets
- Using HSN 4504 for shaped gaskets
- Billing transformer gasket sheets as general rubber cork sheets
- Using inconsistent HSN codes across invoices and returns
Such mistakes often trigger GST scrutiny and notices.
