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.
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
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.
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.
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.
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!
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!
Hey,
What are the consequences of not mentioning or incorrectly mentioning the HSN Code?
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!
Hey @Prasana_Srinivasan, this tool can help