🔫 HSN Chapter 93: Arms, Ammunition, Parts & Accessories - GST Rates 2026

Answer: Revolvers and pistols attract 40% GST as of September 22, 2025 (increased from 28% in the 56th GST Council Meeting) - making them one of the HIGHEST taxed goods in India!

Revolvers & Pistols GST Details:

Period	GST Rate	Status
July 2017 - Sept 21, 2025	28%	Initial luxury goods rate
Sept 22, 2025 - Present (Feb 2026)	40%	INCREASED by 12 percentage points

40% GST Calculation Examples (February 2026):

• 🔫 IOF .32 Bore Pistol (Rs 50,000 base): Rs 50,000 + Rs 20,000 GST = Rs 70,000 total
• 🔫 Smith & Wesson 686 Revolver (Rs 80,000): Rs 80,000 + Rs 32,000 GST = Rs 1.12 lakh total
• 🔫 Glock 19 Pistol (Rs 1.2 lakh): Rs 1.2L + Rs 48,000 GST = Rs 1.68 lakh total
• 🔫 Beretta 92FS (Rs 1.5 lakh): Rs 1.5L + Rs 60,000 GST = Rs 2.1 lakh total
• 🔫 SIG Sauer P226 (Rs 2 lakh): Rs 2L + Rs 80,000 GST = Rs 2.8 lakh total

Why 40% GST (Highest Slab)?

• 🎯 Sin Goods Category: Aligned with tobacco products, luxury cars, aerated drinks
• 🔫 Public Safety: Discourage civilian handgun ownership through higher taxation
• 💰 Revenue Generation: High tax on non-essential luxury/risk items
• ⚖️ Social Policy: Handguns considered high-risk consumer goods
• 🌍 Concealment Risk: Pistols/revolvers can be concealed (unlike rifles/shotguns)

Impact on Legal Gun Owners:

• 📈 12% Price Increase: From Sept 22, 2025, revolvers/pistols became 12% more expensive
• 💼 Licensed Buyers: All purchases require valid arms license + pay 40% GST
• 🎯 Sport Shooters: Olympic pistol shooters face higher equipment costs
• 🔒 Self-Defence: Personal protection firearms significantly costlier

Important Legal Requirements:

• 📋 Arms License: Mandatory from District Magistrate (difficult to obtain)
• 🔒 Permitted Calibers: Only .32 bore, .22 bore allowed for civilians
• ❌ Prohibited Bore: 9mm, .455, .303 prohibited for civilians (military/police only)
• 💰 GST Invoice: Dealers must issue GST invoice with 40% GST breakdown

Answer: Rifles and shotguns attract 18% GST (HSN 9303) - UNCHANGED in September 2025 reforms. Only revolvers/pistols were increased to 40%; sporting long guns remain at 18%.

Sporting Firearms GST Rates (All 18%):

Firearm Type	HSN Code	GST Rate	Status
Sporting Rifles (all calibers)	9303 20	18%	Unchanged
Shotguns (single/double barrel)	9303 30	18%	Unchanged
.22 LR Rifles (target shooting)	9303 20 20	18%	Unchanged
Hunting Rifles (bolt-action)	9303 20 10	18%	Unchanged

Sporting Firearms Price Examples (18% GST):

• 🔫 IOF .315 Rifle (Rs 40,000): Rs 40,000 + Rs 7,200 GST = Rs 47,200 total
• 🔫 IOF 12-Bore SBBL Shotgun (Rs 60,000): Rs 60,000 + Rs 10,800 GST = Rs 70,800 total
• 🔫 IOF .22 Target Rifle (Rs 35,000): Rs 35,000 + Rs 6,300 GST = Rs 41,300 total
• 🔫 Remington 700 Bolt-Action (Rs 1.5 lakh): Rs 1.5L + Rs 27,000 GST = Rs 1.77 lakh total
• 🔫 Beretta 686 Shotgun (Rs 3 lakh): Rs 3L + Rs 54,000 GST = Rs 3.54 lakh total
• 🔫 Perazzi MX8 Shotgun (Rs 8 lakh): Rs 8L + Rs 1.44L GST = Rs 9.44 lakh total

Why Rifles/Shotguns NOT Increased to 40%?

• 🎯 Legitimate Sporting Use: Recognized for Olympics, ISSF shooting competitions
• 🦆 Hunting Tradition: Long-standing hunting culture (licensed big game, bird hunting)
• 🌾 Agricultural Need: Farmers use shotguns for crop protection (wild boar, nilgai)
• ⚖️ Lower Concealment Risk: Long guns cannot be concealed (less public safety concern than handguns)
• 📊 Balanced Policy: Government distinguished sporting firearms from handguns

Comparison: Pistols vs Rifles (GST Impact):

Aspect	Revolvers/Pistols	Rifles/Shotguns
GST Rate	40% (increased Sept 2025)	18% (unchanged)
Policy Intent	Discourage civilian ownership	Support sporting/hunting activities
Use Case	Self-defence, concealed carry	Sport shooting, hunting, crop protection
Public Safety	Higher risk (concealment)	Lower risk (visible, sporting use)

Licensing Requirements (Rifles/Shotguns):

• 📋 Arms License: Required from District Magistrate (same as pistols)
• ✅ Calibers: .315, 12-bore, 20-bore, .22 LR commonly permitted
• 🎯 Sporting License: Easier to obtain for competitive shooters with club membership
• 💰 GST Applicable: 18% GST on licensed purchases (significantly lower than pistols' 40%)

Answer: ALL ammunition attracts 18% GST uniformly (HSN 9306) - cartridges, bullets, shells, rounds - regardless of caliber or weapon type.

Ammunition GST Rates (All 18%):

Ammunition Type	HSN Code	GST Rate	Examples
Shotgun Cartridges	9306 21 00	18%	12-gauge LG/SG, 20-gauge shells
.22 LR Ammunition	9306 29 00	18%	.22 rimfire rounds (50/100 packs)
Pistol Ammunition	9306 30 10	18%	.32 bore, 9mm, .38 special rounds
Rifle Cartridges	9306 29 00	18%	.315, .308, .30-06 ammunition
Military Ammunition	9306 30 20	18%	5.56mm NATO, 7.62mm rounds

Ammunition Price Examples (18% GST):

• 💣 .22 LR Ammunition (50 rounds - Rs 500): Rs 500 + Rs 90 GST = Rs 590 total
• 💣 12-Gauge LG Cartridges (25 rounds - Rs 1,200): Rs 1,200 + Rs 216 GST = Rs 1,416 total
• 💣 .32 Bore Rounds (50 rounds - Rs 2,500): Rs 2,500 + Rs 450 GST = Rs 2,950 total
• 💣 .315 Rifle Cartridges (20 rounds - Rs 1,500): Rs 1,500 + Rs 270 GST = Rs 1,770 total
• 💣 9mm Ammunition (50 rounds - Rs 3,500): Rs 3,500 + Rs 630 GST = Rs 4,130 total

Why Ammunition NOT Subject to 40% GST?

• ⚙️ Consumable Component: Ammunition is consumable part of firearm (not the weapon itself)
• 💰 Frequent Purchase: Shooters need regular ammunition for practice (40% would be prohibitive)
• 🎯 Sporting Use: Target shooters, sport shooting clubs need affordable ammunition
• 📊 Separate Classification: Ammunition classified separately from weapons in GST structure
• ✅ Consistent Rate: 18% matches sporting firearms (rifles/shotguns) GST rate

Ammunition Purchase Regulations:

• 📋 License Required: Valid arms license mandatory to purchase ammunition
• 🔢 Quantity Limits: Civilians limited to 50 rounds per weapon per year
• 📜 Record Keeping: Dealers must maintain records of licensed buyer purchases
• 💰 GST Invoice: 18% GST charged, GST invoice issued to licensed buyer
• 🔒 Police Verification: Ammunition purchases may trigger police verification

Special Cases - Military/Police Ammunition:

• 🎖️ Defence Procurement: Armed forces purchase ammunition at 18% GST
• ✅ ITC Available: Defence manufacturers can claim ITC on ammunition components
• 🌍 Exports: Zero-rated GST on ammunition exports to foreign countries
• 🏭 Ordnance Factories: Government ordnance factories pay 18% GST on inputs

Answer: Military weapons attract 18% GST, while defence platforms (tanks, armored vehicles) attract REDUCED 5% GST as of September 2025 (down from 12%) under Atmanirbhar Bharat initiative.

Defence Equipment GST Structure (Post Sept 2025):

Equipment Category	GST Rate	Change
Tanks & Armored Vehicles	5%	↓ Reduced from 12% (Sept 2025)
Military Communication Equipment	5%	↓ Reduced from 12% (Sept 2025)
Artillery, Rocket Launchers	18%	Unchanged
Military Rifles, Machine Guns	18%	Unchanged
Military Ammunition	18%	Unchanged

GST Reduction Impact (12% → 5%):

• 🚜 Arjun Main Battle Tank (Rs 50 crore): Earlier Rs 56 crore (12% GST) → Now Rs 52.5 crore (5% GST) = Rs 3.5 crore savings!
• 🛡️ BMP-2 Infantry Fighting Vehicle (Rs 10 crore): Earlier Rs 11.2 crore → Now Rs 10.5 crore = Rs 70 lakh savings!
• 📡 Military Communication System (Rs 5 crore): Earlier Rs 5.6 crore → Now Rs 5.25 crore = Rs 35 lakh savings!

Why 5% GST for Defence Platforms?

• 🛡️ Atmanirbhar Bharat: Support domestic defence manufacturing ecosystem
• 🏭 Make in India: Encourage private sector participation in defence production
• 💰 Cost Competitiveness: Make Indian defence equipment competitive vs imports
• 🌍 Export Promotion: Lower costs help Indian defence exports globally
• 📊 Strategic Priority: Defence equipment treated as essential national security goods

Military Weapons at 18% GST:

• 🎖️ INSAS Rifles: Indian Army standard rifle - 18% GST
• 🎖️ Bofors Guns: Field artillery - 18% GST
• 🚀 Pinaka Rocket System: Multi-barrel rocket launcher - 18% GST
• 🎖️ Light Machine Guns: Squad automatic weapons - 18% GST

Defence Procurement ITC:

• ✅ Ordnance Factories: Can claim ITC on raw materials, components
• ✅ Defence PSUs: HAL, BEL, BDL can claim ITC on inputs
• ✅ Private Defence Cos: Tata Advanced Systems, L&T Defence claim ITC
• 💰 GST Savings: ITC reduces effective cost for defence manufacturers

Civilian vs Military Weapons (GST Comparison):

Weapon Type	Civilian GST	Military GST
Handguns/Pistols	40% (civilian revolvers)	18% (military sidearms)
Rifles	18% (sporting rifles)	18% (military rifles)
Heavy Equipment	N/A (not sold to civilians)	5% (tanks, armored vehicles)

Answer: Yes, licensed firearms dealers can claim FULL ITC on weapons and ammunition purchased for resale as they are used for taxable supply (sales attract applicable GST rates).

ITC Flow for Firearms Dealers:

• 📦 Purchase: Dealer buys pistols from IOF at Rs 10 lakh (pays Rs 4 lakh GST at 40%)
• 🏪 Sale: Dealer sells pistols to licensed buyers at Rs 15 lakh (collects Rs 6 lakh GST at 40%)
• 💰 ITC Claim: Rs 4 lakh input GST claimed against Rs 6 lakh output GST
• ✅ Net GST Payable: Rs 6 lakh - Rs 4 lakh = Rs 2 lakh to government

✅ ITC Available (Firearms Business Scenarios):

• 🏪 Licensed Gun Dealers: Full ITC on revolvers (40%), rifles (18%), shotguns (18%) purchased for resale
• 🏭 Defence Manufacturers: ITC on raw materials (steel, wood, components) for weapon manufacturing
• 📦 Distributors: ITC on firearms purchased from manufacturers/importers
• 💣 Ammunition Dealers: ITC on ammunition purchased for resale (18% GST)
• 🌍 Importers: ITC on IGST paid on imported firearms (customs clearance)

❌ ITC NOT Available (Scenarios):

• ❌ Personal Use: Individual buying firearm for self-defence - no ITC (final consumer)
• ❌ Unlicensed Trade: Illegal/unlicensed firearms trade - no GST registration, no ITC
• ❌ Security Agencies: Private security companies buying firearms for guards - may not get ITC if exempt services

Firearms Dealer Business Model (ITC Benefit):

Transaction	Amount	GST	Total
Purchase (10 pistols from IOF)	Rs 5 lakh	Rs 2 lakh (40%)	Rs 7 lakh paid
Sale to Licensed Buyers	Rs 7 lakh	Rs 2.8 lakh (40%)	Rs 9.8 lakh received
ITC Benefit	Rs 2L margin	Rs 80K net GST	Rs 1.2L net profit

Sporting Firearms Dealer Example (18% GST):

• 📦 Purchase: 5 rifles from IOF at Rs 2 lakh (pay Rs 36,000 GST at 18%)
• 🏪 Sale: Sell to licensed shooters at Rs 3 lakh (collect Rs 54,000 GST at 18%)
• 💰 ITC Claim: Rs 36,000 input GST claimed
• ✅ Net GST: Rs 54,000 - Rs 36,000 = Rs 18,000 payable to government

Documentation Required for ITC Claim:

• 📋 GST Invoice: Valid tax invoice from supplier (IOF, manufacturer) with GSTIN
• 📋 Arms License: Dealer's arms dealer license from authorities
• 📋 Stock Register: Maintain records of firearms received, sold (serial numbers tracked)
• 📋 Buyer Verification: Copies of buyer's arms license for each sale
• 📋 GST Returns: File GSTR-3B monthly, claim ITC properly with reconciliation

Special Compliance for Firearms Trade:

• 🔒 Dual Regulation: Both Arms Act 1959 AND GST Act compliance required
• 📜 Police Records: Maintain records for police inspection (beyond GST requirements)
• 💰 High Value: Firearms are high-value items - strict ITC scrutiny by GST authorities
• ⚖️ Licensed Trade Only: Only licensed dealers can claim ITC (illegal trade = no GST benefits)

Answer: Imported firearms attract BOTH customs duty AND IGST. Total tax can be 50-70% on CIF value depending on weapon type (civilian firearms heavily taxed).

Import Tax Structure on Firearms:

Tax Component	Pistols/Revolvers	Rifles/Shotguns
Basic Customs Duty (BCD)	Varies (typically 15-25%)	Varies (typically 15-25%)
Social Welfare Surcharge	10% of BCD	10% of BCD
IGST	40%	18%
Total Effective Tax	~60-70%	~40-50%

Imported Pistol Tax Calculation Example (Glock 19):

• 🔫 Pistol: Glock 19 imported from Austria
• 🌍 CIF Value: USD 500 (invoice) = Rs 41,500 (at Rs 83/USD)
• → Step 1 - Basic Customs Duty (20%): Rs 41,500 × 20% = Rs 8,300
• → Step 2 - Social Welfare Surcharge (10% of BCD): Rs 8,300 × 10% = Rs 830
• → Step 3 - Assessable Value: Rs 41,500 + Rs 8,300 + Rs 830 = Rs 50,630
• → Step 4 - IGST (40%): Rs 50,630 × 40% = Rs 20,252
• → Total Tax: Rs 8,300 + Rs 830 + Rs 20,252 = Rs 29,382
• → Total Landed Cost: Rs 41,500 + Rs 29,382 = Rs 70,882
• → Effective Tax Rate: 71% on CIF value!

Imported Rifle Tax Calculation Example (Remington 700):

• 🔫 Rifle: Remington 700 imported from USA
• 🌍 CIF Value: USD 800 = Rs 66,400
• → BCD (20%): Rs 13,280
• → SWS (10%): Rs 1,328
• → Assessable: Rs 81,008
• → IGST (18%): Rs 14,581
• → Total Tax: Rs 29,189 (44% effective rate)
• → Landed Cost: Rs 95,589

ITC on IGST (For Authorized Dealers):

• ✅ Dealers Can Claim: IGST (40% for pistols, 18% for rifles) eligible as ITC
• ❌ Customs Duty: BCD + SWS NOT eligible for ITC (absorbed as cost)
• 💰 Pistol Example: Rs 20,252 IGST recoverable, but Rs 9,130 customs duty = cost

Why Imported Firearms Are Expensive in India:

• 📈 High Import Duties: 20-25% customs duty on firearms
• 🔫 40% IGST on Pistols: Highest IGST rate makes imported handguns extremely costly
• 💰 Brand Premium: International brands (Glock, SIG, Beretta) have higher base prices
• 🌍 Limited Supply: Few authorized importers = higher retail margins
• 📊 Example: Glock 19 costs Rs 1.5-2 lakh in India vs USD 500-600 (Rs 40-50K) in USA!

Import Licensing Requirements:

• 📋 Import License: Requires import license from DGFT (Director General of Foreign Trade)
• 🔒 Arms Act Compliance: Import must comply with Arms Act 1959 regulations
• 📜 End-Use Certificate: May require end-use certificate for military-grade weapons
• 💰 GST Payment: IGST paid at customs clearance (40% for pistols, 18% for rifles)

Grey Market Risk:

• ⚠️ Illegal Imports: High taxes create demand for smuggled/illegal firearms
• 🔒 Strict Enforcement: Customs/police strictly monitor illegal firearms trade
• ⚖️ Legal Consequences: Possession of unlicensed firearms = serious criminal offense