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Chapter 36 : GST rates & HSN codes for Propellants, Explosives, Fuses, and Fireworks.

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Maharshi Shah

GST
gst rates
HSN Codes & GST Rates
Last updated on April 27th, 2021

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 codes for Propellants, Explosives, Fuses, and Fireworks are mentioned in chapter 36.

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The table given below comprises of the GST rates and HSN codes for Propellants, Explosives, Fuses, and Fireworks

 

HSN Code

Description

Rate (%)

Effective From

Cess (%)

Related Export/Import HSN Code

3605

Matches (other than handmade safety matches [3605 00 10])

18

28/06/2017

 

36050090

3601

Propellant powders

18

28/06/2017

 

36010010, 36010020, 36010090

3602

Prepared explosives, other than propellant powders; such as Industrial explosives

18

14/11/2017

 

36020010, 36020090

3603

Safety fuses; detonating fuses; percussion or detonating caps; igniters; electric detonators

18

28/06/2017

 

36030011, 36030019, 36030020, 36030031, 36030039, 36030041, 36030049, 36030051, 36030059

3604

Fireworks, signaling flares, rain rockets, fog signals, and other pyrotechnic articles

18

14/11/2017

 

36041000, 36049010, 36049090

3606

Ferro-cerium and other pyrophoric alloys in all forms; articles of combustible materials as specified in Note 2 to this Chapter; such as liquid or liquefied-gas fuels in containers of a kind used for filling or refilling cigarette or similar lighters

18

14/11/2017

 

36061000, 36069010, 36069091, 36069092, 36069093, 36069099

36050010

Handmade safety matches Explanation.– For the purposes of this entry, handmade matches mean matches, in or in relation to the manufacture of which, none of the following processes is ordinarily carried on with the aid of power, namely: (i) frame filling; (ii) dipping of splints in the composition for match heads; (iii) filling of boxes with matches; (iv) pasting of labels on matchboxes, veneers or cardboards; (v) packaging

5

28/06/2017

   

 

Disclaimer

The rates 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 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 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.

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.

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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