Chapter 22: GST Rates and HSN codes for Water-Mineral & Aerated

HSN and SAC Codes are used to classify goods and services under GST. HSN i.e. Harmonized System of Nomenclature Code used to classify different goods under GST. Where as, SAC i.e. Service Accounting Code used to classify different services under GST. GST Rates & HSN Code for Water-Mineral & Aerated are mentioned in chapter 22.

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GST Rates & HSN Code for Water-Mineral & Aerated can be summarized in following table:

HSN Code

Description

Rate (%)

Effective From

CESS (%)

Related Export / Import HSN Code

2201

Water [other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container]

NIL

28/06/2017

 

22011010, 22011020, 22019090

2201

Non-alcoholic Toddy, Neera including date and palm neera

NIL

28/06/2017

 

22011010, 22011020, 22019090

2201

Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavored

18

28/06/2017

 

22011010, 22011020, 22019090

2207

Ethyl alcohol and other spirits, denatured, of any strength [other than ethyl alcohol supplied to Oil Marketing Companies for blending with motor spirit (petrol) inserted on 27/07/2018]

18

28/06/2017

 

22071011, 22071019, 22071090, 22072000

2207

Ethyl alcohol supplied to Oil Marketing Companies for blending with motor spirit (petrol)

5

27/07/2018

   

2209

Vinegar and substitutes for vinegar obtained from acetic acid

18

28/06/2017

 

22090010, 22090020, 22090090

22029090

Tender coconut water other than put up in unit container and bearing a registered brand name

NIL

28/06/2017

   

22029090

Tender coconut water put up in unit container and bearing a registered brand name, or bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any such actionable claim or enforceable right in respect of such brand name has been voluntarily foregone, subject to the conditions as specified in the ANNEXURE]

5

10/11/2017

   

22029090

Other non-alcoholic beverages

18

10/11/2017

   

22029030

Beverages containing milk

12

28/06/2017

   

22029020

Fruit pulp or fruit juice based drinks

12

28/06/2017

   

22029010

Soya milk drinks

12

28/06/2017

   

22029100

Other non-alcoholic beverages [other than tender coconut water]

18

14/11/2017

   

22029990

Other non-alcoholic beverages [other than tender coconut water]

18

14/11/2017

   

22021090

Others

28

28/06/2017

12

 

22021020

Lemonade

28

28/06/2017

12

 

22021010

Aerated Waters

28

28/06/2017

12

 

22019010

Ice and snow

5

28/06/2017

   

220210

All goods [including aerated waters], containing added sugar or other sweetening matter or flavored

28

28/06/2017

   

 

Disclaimer

Rates given above for chocolate and other Cocoa items are mentioned according to 31st GST board meeting held on 22nd December 2018. There might be variations because of Government’s most recent updates.  Against each rate, you must check the “Effective from” date mentioned herein. On the off chance that you have to check a rates earlier than “effective from”, you can keep an eye on government site.

FAQs

How HSN codes are unique?

HSN codes are unique for each product. Under HSN, all the goods and services are divided into 21 sections, 99 chapters. Under 99 chapters there are 1244 headings and 5244 subheadings. Each item which is used for trade or commercial use, it is identified with 8 digit code using the HSN code rules.

Is it compulsory to use the HSN Code?

HSN Code must be used by all dealers except in the following cases:
> Dealers who have an Annual Turnover of less than Rs.1.5 Cr
> Dealers who have registered to pay tax under the Composition Scheme

Who needs an HSN code?

Taxpayers having turnover exceeds Rs. 1.5 crore but up to 5.00 crore will be required to mention only two digits of HSN code. Taxpayers having turnover exceeds Rs 5.00 crore will be required to mention four digits of HSN code.

Got Questions? Ask Away!

  1. Hey @HarishMehta

    From 1st April 2021, Taxpayers with an aggregate Annual Turnover of more than INR 5 Crore during the financial Year 2020-2021 have to mandatorily mention 6 digits of the HSN Code in all tax invoices.

    Businesses with a turnover of up to INR 5 crore in the preceding financial year will be required to mandatorily furnish 4 digit HSN code on B2B invoices.

    Hope this helps!

  2. Hey @Dia_malhotra

    Let’s take an example of Cocoa powder to calculate the GST using the HSN code.

    Cocoa Powder per Kg = INR1,000.
    HSN Code = 18 05 00 00
    GST Rate = 18% (For Cocoa powder, not containing added sugar or sweetening matter)
    Therefore, GST = INR180

    Hope this helps!

  3. Hey,

    What are the consequences of not mentioning or incorrectly mentioning the HSN Code?

  4. Hey @SonalYadav

    It is very crucial to mention the correct HSN/ SAC Code on the tax invoices and Form GSTR-1, barring to do so may attract a penalty of INR 50,000 (INR 25,000 each for CGST and SGST) for non-mentioning or incorrect mention of wrong HSN/ SAC Code under Section 125 of the CGST Act.

    Hope this helps!

  5. Hey @Prasana_Srinivasan, this tool can help

Continue the conversation on TaxQ&A

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