Harmonized System of Nomenclature (“HSN code”) is a systematic classification of goods used all over the World, introduced by the World Customs Organisation (WCO) in 1988. The HSN code provides a list of around five thousand products which has been adopted worldwide.

The HSN code has been classified under 21 Sections further distributed in 99 chapters, then headings and subheadings. While GST filing, HSN codes are automatically filled by the system through the registration details of the dealer, which makes the filing of returns simple and effortless. This article provides the details of the GST rate and HSN code for Tea, Coffee & Spices.

Who is required to use the HSN Code in the Country?

HSN code is required for dealers and trades. The code has to be used as per the rules and notifications which have provided the following criteria:

1.If turnover is less than Rs.1.5 crores:
HSN codes are not required.

2.If turnover ranges between Rs.1.5 crores to Rs. 5 crores:
Require 2 digit HSN code for the trades.

3. If turnover exceeds Rs.5 crores:
Require 4 digit HSN codes.

4. For Import and export trading:
Require 8 digit HSN codes.

What are the GST Rate and HSN Code for tea, coffee & spices?

Chapter 9 of the HSN code describes tea, Coffee & Spices.

HSN CODE	CLASS OF GOODS	GST RATE (%)
0901	Coffee beans (not roasted)	NIL
0901	Coffee roasted or not or decaffeinated; coffee husks and skins; coffee substitutes having coffee in any proportion (other than coffee beans not roasted)	5
0902	green tea leaves (Unprocessed)	NIL
0902	Tea (flavored or not), other than green tea leaves that are unprocessed	5
0903	Mate	5
0904	Pepper of genus Piper; Crushed/Dried/ground fruits (of genus Capsicum or genus pimento)	5
0905	Vanilla	5
0906	cinnamon-tree flowers and Cinnamon	5
0907	Cloves (it contains the whole of the fruit and cloves and stems)	5
0908	Nutmeg, Mace, cardamoms	5
0909	Seeds of anise, Seeds of badian, Seeds of fennel, Seeds of coriander, Seeds of cumin or caraway; juniper berries (of seed quality)	NIL
0909	Seeds of anise, Seeds of badian, Seeds of fennel, Seeds of coriander, Seeds of cumin or caraway; juniper berries other than of seed quality.	5
0910 11 10	Fresh ginger (not in processed form)	NIL
0910 30 10	Fresh turmeric (not in processed form)	NIL
0910 (does not include 0910 11 10, 0910 30 10)	Ginger (apart from fresh ginger), saffron, turmeric (other than fresh turmeric), thyme, bay leaves, curry, other spices	5

 

HSN codes vary for different commodities. Applicability of the HSN code is beneficial for the taxpayers as they don’t have to upload all the details of the product each time filing is being done, rather just need to select the specific code at the time of registration. Through this tax rate can be determined more conveniently, thus providing more clarity to the taxpayers also un-complicating the process of return filing.