Chapter 24: GST Rates and HSN codes for Tobacco, Stemmed & Stripped.

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Chapter 24
GST
HSN Codes & GST Rates
Last updated on April 26th, 2021

HSN means the Harmonized System of Nomenclature code used for classifying goods under GST. This classification is used in Customs, Central Excise and Foreign Trade Policy. The use of HSN codes is to make GST systematic and globally accepted. GST Rates and HSN codes for Tobacco, Stemmed & Stripped are mentioned in chapter 24.

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The table given below comprises of the GST rates and HSN codes for Tobacco, Stemmed & Stripped.

HSN Code Description Rate (%) Effective From CESS (%) Related Export / Import HSN Code
2401 Tobacco leaves 5 28/06/2017   24011010, 24011020, 24011030, 24011040, 24011050, 24011060, 24011070, 24011080, 24011090, 24012010, 24012020, 24012030, 24012040, 24012050, 24012060, 24012070, 24012080, 24012090
2401 Unmanufactured tobacco; tobacco refuse [other than tobacco leaves] (other than bearing a brand name) 28 28/06/2017   24011010, 24011020, 24011030, 24011040, 24011050, 24011060, 24011070, 24011080, 24011090, 24012010, 24012020, 24012030, 24012040, 24012050, 24012060, 24012070, 24012080, 24012090
2401 Unmanufactured tobacco (without lime tube) – bearing a brand name 28 28/06/2017 71 24011010, 24011020, 24011030, 24011040, 24011050, 24011060, 24011070, 24011080, 24011090, 24012010, 24012020, 24012030, 24012040, 24012050, 24012060, 24012070, 24012080, 24012090
2401 Unmanufactured tobacco (with lime tube) – bearing a brand name 28 28/06/2017 65 24011010, 24011020, 24011030, 24011040, 24011050, 24011060, 24011070, 24011080, 24011090, 24012010, 24012020, 24012030, 24012040, 24012050, 24012060, 24012070, 24012080, 24012090
2403 Other manufactured tobacco and manufactured tobacco substitutes; “homogenised” or “reconstituted” tobacco; tobacco extracts and essences [including biris] (24031921 and 24031929) 28 28/06/2017   2403 1 1, 24031921, 24031929
2402 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes 28 28/06/2017    
24039990 Pan masala containing tobacco ‘Gutkha’ 28 28/06/2017 204  
24039990 All goods, other than pan masala containing tobacco ‘gutkha’, bearing a brand name 28 28/06/2017 96  
24039990 All goods, other than pan masala containing tobacco ‘gutkha’, not bearing a brand name 28 28/06/2017 89  
24039970 Cut tobacco 28 28/06/2017 20  
24039960 Tobacco extracts and essence bearing a brand name 28 28/06/2017 72  
24039960 Tobacco extracts and essence not bearing a brand name 28 28/06/2017 65  
24039950 Preparations containing snuff 28 28/06/2017 72  
24039940 Snuff 28 28/06/2017 72  
24039930 Jarda scented tobacco 28 28/06/2017 160  
24039920 Preparations containing chewing tobacco 28 28/06/2017 72  
24039910 Chewing tobacco (without lime tube) 28 28/06/2017 160  
24039910 Chewing tobacco (with lime tube) 28 28/06/2017 142  
24039910 Filter khaini 28 28/06/2017 160  
24039100 “Homogenised” or “reconstituted” tobacco, bearing a brand name 28 28/06/2017 72  
24039100 “Homogenised” or “reconstituted” tobacco, other than bearing a brand name 28 28/06/2017    
24031990 Other smoking tobacco bearing a brand name 28 28/06/2017 49  
24031990 Other smoking tobacco not bearing a brand name 28 28/06/2017 11  
24031910 Smoking mixtures for pipes and cigarettes 28 28/06/2017 290  
24031190 Other water pipe smoking tobacco not bearing a brand name. 28 28/06/2017 11  
24031110 Hookah’ or ‘gudaku’ tobacco bearing a brand name 28 28/06/2017 72  
24031110 Tobacco used for smoking ‘hookah’ or ‘chilam’ commonly known as ‘hookah’ tobacco or ‘gudaku’ not bearing a brand name 28 28/06/2017 17  
24029090 Other 28 28/06/2017 12.5% or Rs. 4,006 per thousand whichever is higher  
24029020 Cigarillos of tobacco substitutes 28 28/06/2017 12.5% or Rs. 4,006 per thousand whichever is higher  
24029010 Cigarettes of tobacco substitutes 28 28/06/2017 Rs.4006 per thousand  
24022090 Other cigarettes containing tobacco 28 28/06/2017 5% + Rs.4170 per thousand  
24022050 Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimeters or its actual length, whichever is more) exceeding 70 millimeters but not exceeding 75 millimeters 28 28/06/2017 5% + Rs.2876 per thousand  
24022040 Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimeters or its actual length, whichever is more) exceeding 65 millimeters but not exceeding 70 millimeters 28 28/06/2017 5% + Rs.2126 per thousand  
24022030 Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimeters or its actual length, whichever is more) not exceeding 65 millimeters 28 28/06/2017 5% + Rs.1591 per thousand  
24022020 Cigarettes containing tobacco other than filter cigarettes, of length exceeding 65 millimeters but not exceeding 75 millimeters 28 28/06/2017 5% + Rs.2876 per thousand  
24022010 Cigarettes containing tobacco other than filter cigarettes, of length not exceeding 65 millimeters 28 28/06/2017 5% + Rs.1591 per thousand  
24021020 Cigarillos 28 28/06/2017 21% or Rs. 4170 per thousand, whichever is higher  
24021010 Cigar and cheroots 28 28/06/2017 21% or Rs. 4170 per thousand, whichever is higher  
24013000 Tobacco refuse bearing a brand name 28 28/06/2017 61  

Disclaimer

GST rates for Tobacco, Stemmed & Stripped given in the above table are as per the 31st GST council meeting which was held on 22nd December 2018. Dissimilarities may be present due to the latest updates made by the government. Make sure to check the “Effective From” column.

FAQs

Is GST applicable on tobacco?

GST rate for all types of tobacco products is 28%, except for tobacco leaves. GST rate for tobacco leaves is 5% under reverse charge. As GST for tobacco leaves is applicable under reverse charge, the recipient of the goods is required to pay the GST applicable directly to the Government.

Who needs a 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.

Is HSN code is mandatory in GST invoice?

It is a mandatory requirement under GST to mention HSN/ SAC code in the GST invoice. HSN code is mandatory for all, except with a turnover less than 1.5 Cr in a financial year and a taxpayer who have done GST Registration under the composition scheme. And for supplier of services there are SAC Codes.

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

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