HSN Code Description CGST Rate(%) SGST/UTGST Rate(%) IGST Rate(%) Condition
0303 Fish, frozen, excluding fish fillets and other fish meat of heading 0304 2.5 2.5 5
0304 Fish fillets and other fish meat (whether or not minced), frozen 2.5 2.5 5
0305 Fish, dried, salted or in brine; smoked fish, whether or not cooked before or during the smoking process; flours, meals and pellets of fish, fit for human consumption 2.5 2.5 5
0306 Crustaceans, whether in shell or not, frozen, dried, salted or in brine; crustaceans, in shell, cooked by steaming or by boiling in water, frozen, dried, salted or in brine; flours, meals and pellets of crustaceans, fit for human consumption 2.5 2.5 5
0307 Molluscs, whether in shell or not, frozen, dried, salted or in brine; aquatic invertebrates other than crustaceans and molluscs, frozen, dried, salted or in brine; flours, meals and pellets of aquatic invertebra other than crustaceans, fit for human consumption 2.5 2.5 5
0308 Aquatic invertebrates other than crustaceans and molluscs, frozen, dried, salted or in brine; smoked aquatic invertebrates other than crustaceans and molluscs, whether or not cooked before or during the smoking process: flours, meals and pellets of aquatic invertebrates other than crustaceans and molluscs, fit for human consumption 2.5 2.5 5
0401 Ultra High Temperature (UHT) milk 2.5 2.5 5
0402 Milk and cream, concentrated or containing added sugar or other sweetening matter, including skimmed milk powder, milk food for babies [other than condensed milk] 2.5 2.5 5
0403 Cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa 2.5 2.5 5
0404 Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included 2.5 2.5 5
0406 Chena or paneer put up in unit container and bearing a registered brand name 2.5 2.5 5
0408 Birds' eggs, not in shell, and egg yolks, fresh, dried, cooked by steaming or by boiling in water, moulded, frozen or otherwise preserved, whether or not containing added sugar or other sweetening matter. 2.5 2.5 5
0409 Natural honey, put up in unit container and bearing a registered brand name 2.5 2.5 5
0410 Edible products of animal origin, not elsewhere specified or included
0502 Pigs', hogs' or boars' bristles and hair; badger hair and other brush making hair; waste of such bristles or hair. 2.5 2.5 5
0505 Skins and other parts of birds, with their feathers or down, feathers and parts of feathers (whether or not with trimmed edges) and down, not further worked than cleaned, disinfected or treated for preservation; powder and waste of feathers or parts of feathers 2.5 2.5 5
0507[Except 050790] Ivory, tortoise-shell, whalebone and whalebone hair, horns, unworked or simply prepared but not cut to shape; powder and waste of these products. 2.5 2.5 5
0508 Coral and similar materials, unworked or simply prepared but not otherwise worked; shells of molluscs, crustaceans or echinoderms and cuttle-bone, unworked or simply prepared but not cut to shape, powder and waste thereof. 2.5 2.5 5
0510 Ambergris, castoreum, civet and musk; cantharides; bile, whether or not dried; glands and other animal products used in the preparation of pharmaceutical products, fresh, chilled, frozen or otherwise provisionally preserved. 2.5 2.5 5
0511 Animal products not elsewhere specified or included; dead animals of Chapter 1 or 3, unfit for human consumption, other than semen including frozen semen. 2.5 2.5 5
07 Herb, bark, dry plant, dry root, commonly known as jaribooti and dry flower 2.5 2.5 5
0710 Vegetables (uncooked or cooked by steaming or boiling in water), frozen 2.5 2.5 5
0711 Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption 2.5 2.5 5
0713 Dried leguminous vegetables, shelled, whether or not skinned or split [put up in unit container and bearing a registered brand name] 2.5 2.5 5
0714 Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, frozen or dried, whether or not sliced or in the form of pellets 2.5 2.5 5
0801 Cashew nuts, whether or not shelled or peeled 2.5 2.5 5
0802 Dried areca nuts, whether or not shelled or peeled 2.5 2.5 5
0802 Dried chestnuts (singhada), whether or not shelled or peeled 2.5 2.5 5
08 Dried makhana, whether or not shelled or peeled 2.5 2.5 5
0811 Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter 2.5 2.5 5
0812 Fruit and nuts, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption 2.5 2.5 5
0814 Peel of citrus fruit or melons (including watermelons), frozen, dried or provisionally preserved in brine, in sulphur water or in other preservative solutions 2.5 2.5 5
0901 Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion [other than coffee beans not roasted] 2.5 2.5 5

HSN Codes and GST Rates

There are many states in India who have their own systems for classifying Goods and Services Tax rates. However, due to the coming of the Goods and the Services Tax (GST) system, there is a thirst for more uniform classification- not only in the National Level but also internationally. Hence in this article, we are going to discuss the Harmonised System of Nomenclature (HSN) and how they relate with the Goods and Services Tax (GST).

What are HSN Codes?

HSN stands for Harmonised System of Nomenclature (HSN) which was developed by the World’s Customs Organization (WCO) with a motive of classifying goods all over the World in a systematic manner. The HSN standardizes the classification of the commodities under different sections, chapters, headings, and sub-headings. It contains a six-digit code for a commodity where the each of the two digits represents chapter, heading, and sub-heading.
India, being a member of WCO since 1971, has been using the HSN Codes since 1986 to categorise the commodities for Customs and Central Excise. Later, the Custom and the Central Excise added two more digits to make the codes more definite, resulting into eight-eight digit classification.
This type of classification is mainly done for the taxation purposes in identifying the rate of tax applicable to a product in a country. This code is also used to determine the amount of product traded or imported.

HSN Codes for GST in India:

HSN is applicable in India after the implementation of GST. Earlier, India used the HSN system under the Customs and Central Excise. Under GST, the majority of dealers will need to adopt two, four or eight digit HSN Codes for their commodities depending on their turnover the year prior.
The Provisions related to HSN under GST are as follows:
• The dealers whose turnover is less than Rs 1.5 Crore are not required to adopt the HSN codes for their commodities.
• The dealers whose turnover is between Rs 1.5 Crore to 5 Crore are required to use two-digit HSN Codes for their commodities.
• The dealers whose turnover is equal to Rs 5 Crore and above are required to use four-digit HSN Codes for their commodities.
• In case of the exports and imports of the Commodities, eight-digit HSN Codes are compulsory, as the GST has to be compatible with the international standards and prices.

Why is HSN important under GST?

The purpose of HSN codes is to make the GST more systematic and globally accepted. The HSN will also remove the need to upload the detailed description of the goods. The will reduce a lot of time and make the filing easier as the GST returns are completely automated.
The dealer of the service provider must provide the HSN number while submitting the summary of the sales in his GSTR-1 if the turnover falls in any of the above slabs.

A Brief about the HSN Classification:

The HSN has 21 sections, 99 chapters, 1244 Headings and 5244 sub-headings. The sections and the chapters are arranged in a sequence of the product’s degree of manufacture or in terms of its technological complexity. Natural products from the animals and the vegetables appear in the earlier sections whereas, the man-made or the technologically made products appear later.
Like for an example, take cotton which comes under Chapter 52. The raw cotton comes in the earlier chapter whereas, the cotton as a woven fabric appears later in the chapter.

More about the HSN Codes:

•Each section is the collection of different chapters. This section represents a broader class of goods and chapters represents a particular class of goods. For example, Section XV denotes the base metals and articles to the base metals, while Section XV, Chapter 72 represents the iron and steel specifically.
•For a better identification of the Goods, including India with the different countries uses the eight-digit HSN codes. For example, the HSN Codes for Ferro-Phosphorous under the other Ferro-Alloy products is 7202
•Some HSN codes use the dashes. These dashes represent something. A single dash in the beginning of the description denotes an article that belongs to the group covered under a heading. A double dash indicates that an article is a sub-classification of the preceding article that has a single dash. In the same way, the triple dash or a quadruple dash indicates that the article is a sub-classification of the preceding article that has a double dash or triple dash.

About the GST Rates:

Based on the HSN Codes, the GST Rates has been classified into 5 slabs namely: NIL, 5%, 12%, 18% and 28%. According to the latest news, from the GST Council, the tax structure for the common goods are as follows:
0% Tax Slab: The products or the commodities that experience 0% GST are milk, jaggery, salt, Lassi, raw honey, vegetables etc.
5% Tax Slab: The products and the commodities that come under the 5% GST are PDS Kerosene, Domestic LPG, Packed Paneer, Coal, Tea, and Footwear’s under Rs 500 and Apparels under Rs 1000.
12% Tax Slab: The products and the commodities that come under the 12% GST are Butter, Ghee, Mobile Phones, Umbrella, Chutney, Jam, Jelly etc.
18% Tax Slab: The Commodities that come under the 18% GST are Hair oil, Toothpaste, Printers, Computers, Pasta, and Ice Cream etc.
28% Tax Slab: This tax slab includes all the luxury items such as cars, consumer durables such as AC, Fridge, BMW’s, Cigarettes, Aerated drinks and high0end Motorcycles.
Along with that it was also announced that,-
1. The restaurants that serve alcohol comes under the 18% Tax Slab.
2. Education, Healthcare are going to be exempted from the GST.
3. The services on the Non-AC Restaurants will experience 12% Tax Slab.
Along with India’s move to GST comes the online Taxation System and to the HSN Codes for classifying goods for taxation. The motive of this system is to bring a uniform taxation as well as more ease in doing business. The HSN Codes are now being used for filing return on invoices etc. rather than the written description. This has made the transition simpler and easier.