A pallet strapping machine is capital equipment, so its tax treatment is straightforward — but procurement and finance teams still need the exact codes to classify the asset, claim input tax credit, and validate the supplier’s invoice. This guide states the HSN code and GST rate plainly, then covers spare parts, invoicing, ITC and the technical specifications buyers verify before approval.
HSN code for a pallet strapping machine in India
Pallet strapping machines — including mobile systems like the ErgoPack 726X, GO and 700 — are classified under HSN code 84224000. This heading covers “other packing or wrapping machinery (including heat-shrink wrapping machinery)” within Chapter 84 of the Customs Tariff, which deals with machinery and mechanical appliances. Strapping, banding and bundling machines all fall under this 8-digit code.
| Item | HSN code | GST rate | Tax split (intra-state) |
|---|---|---|---|
| Pallet strapping machine | 84224000 | 18% | 9% CGST + 9% SGST |
| Strapping / banding machine (general) | 84224000 | 18% | 9% CGST + 9% SGST |
| Strapping machine spare parts | 84229090 | 18% | 9% CGST + 9% SGST |
| PP / PET strapping consumable (rolls) | 39202020 / 39209999 | 18% | 9% CGST + 9% SGST |
Why the 8-digit code matters
For machinery above the turnover threshold, GST invoices must carry the full 8-digit HSN. Quoting 84224000 (not just the 4-digit 8422) keeps the invoice compliant and avoids classification queries during assessment.
GST rate on pallet strapping machines
The GST rate on pallet strapping machines is 18%. On an intra-state purchase this is charged as 9% CGST plus 9% SGST; on an inter-state purchase it is charged as 18% IGST. The rate is the same whether the machine is manual (ErgoPack 700), semi-automatic mobile (GO) or fully integrated (726X) — classification follows the function, not the level of automation.
Worked example: GST on a strapping machine purchase
If a machine is invoiced at ₹10,00,000 (ex-GST), the buyer pays ₹1,80,000 GST, for a total invoice of ₹11,80,000. A GST-registered business using the machine in the course of business can claim that ₹1,80,000 as Input Tax Credit, so the effective cost of the asset remains ₹10,00,000. This is a key point procurement should make to finance: for a registered buyer, GST on capital equipment is not a sunk cost.
Input Tax Credit (ITC) on a strapping machine
- A registered business buying a strapping machine for use in its factory or warehouse can claim full ITC on the 18% GST paid.
- The supplier must be GST-registered, the tax invoice must carry the correct HSN (84224000) and GSTIN, and the invoice must appear in the buyer’s GSTR-2B.
- ITC also applies to GST paid on spare parts (84229090) and PP/PET strapping consumables used in business.
- Capital goods ITC is availed in full in the period of receipt, subject to the usual conditions — there is no need to spread it over the asset’s life.
Specifications procurement verifies before approval
Beyond tax codes, the purchase file usually needs the machine’s technical envelope so the asset can be matched to the application. For the ErgoPack mobile range the headline numbers are:
| Specification | ErgoPack 700 (crank) | ErgoPack GO | ErgoPack 726X |
|---|---|---|---|
| Drive | Manual hand crank | Electronic joystick | Electronic joystick + touchscreen |
| Integrated sealing head | No (use own tool) | No (use own tool) | Yes — friction weld |
| Tension force | Per your tool | Per your tool | 400N – 2500N (digital) |
| Strap material | PP / PET | PP / PET | PP / PET |
| Cycle time | < 60s | < 45s | < 40s |
| Max pallet (W × H) | 2.4 × 2.3 m | 2.4 × 2.3 m | 2.4 × 2.3 m |
| HSN / GST | 84224000 / 18% | 84224000 / 18% | 84224000 / 18% |
Need a GST-compliant quotation with the correct HSN for your purchase file?
Request a formal quotationFrequently Asked Questions
- What is the HSN code for a pallet strapping machine in India?
- The HSN code for a pallet strapping machine in India is 84224000, which covers other packing or wrapping machinery under Chapter 84. The same code applies to manual, semi-automatic and automatic strapping machines.
- What is the GST rate on a pallet strapping machine?
- Pallet strapping machines attract 18% GST under HSN code 84224000 — charged as 9% CGST + 9% SGST on an intra-state purchase, or 18% IGST on an inter-state purchase.
- What is the HSN code for strapping machine spare parts?
- Strapping machine spare parts are generally classified under HSN code 84229090 and are also taxed at 18% GST.
- Can a business claim input tax credit on a strapping machine?
- Yes. A GST-registered business buying a strapping machine for use in the course of business can claim full input tax credit on the 18% GST paid, provided the supplier is registered, the tax invoice carries the correct HSN (84224000) and GSTIN, and the invoice reflects in GSTR-2B. For a registered buyer this makes the effective cost of the machine the ex-GST price.
- Is the GST rate different for manual vs automatic strapping machines?
- No. Classification under HSN 84224000 follows the machine’s function — packing/wrapping machinery — not its level of automation, so manual, semi-automatic and fully integrated machines all attract 18% GST.
- What HSN code applies to PP and PET strapping rolls?
- PP and PET strapping consumables are plastics articles, generally classified under HSN 3920 (e.g. 39202020 / 39209999) and taxed at 18% GST. Input tax credit is available when they are used in the course of business.
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