Agriculture HSN Code

The Agriculture HSN Codes and GST: A Comprehensive Guide

Agriculture forms the backbone of many economies, and understanding the Goods and Services Tax (GST) implications for various agricultural services and products is crucial for farmers, agri-businesses, and service providers. This guide aims to clarify the HSN (Harmonized System of Nomenclature) codes and GST rates associated with different aspects of agriculture.

Understanding HSN Codes for Agricultural Services

When we talk about “Agriculture HSN Code,” it’s important to differentiate between direct agricultural produce (which often enjoys exemptions or lower rates) and services or specific items used in agriculture. The data provided primarily focuses on services and certain agricultural implements made of ceramic.

Here’s how HSN codes apply to services related to agriculture:

• Research and Development Originals in Agriculture (HSN 998142): This code applies to services involving original research and development activities specifically within the agricultural sector. These services are subject to an 18% GST rate. The effective date for this rate is July 1, 2017.
• Support Services to Agriculture, Hunting, Forestry, Fishing, Mining and Utilities (HSN 998612/18): This broad category encompasses a range of support services. For agricultural support services, the GST rate can be either 12% or 18%. This distinction often depends on the specific nature of the service, with some essential agricultural support services being exempted or taxed at lower rates. The effective date for these rates is January 25, 2018.
• Other Support Services to Agriculture, Hunting, Forestry and Fishing (HSN 998619): This HSN code also falls under support services, specifically for agriculture, hunting, forestry, and fishing. Similar to 998612/18, the GST rate can be 12% or 18%, depending on the exact service. This rate also became effective on January 25, 2018.

It is crucial to consult the latest GST notifications and rulings to determine the precise GST rate for specific support services, as exemptions or lower rates are often provided for core agricultural activities.

HSN Codes for Ceramic Products in Agriculture

The data also highlights HSN codes for certain ceramic products used in agriculture:

• Ceramic Wares for Laboratory, Chemical or Other Technical Uses; Ceramic Troughs, Tubs and Similar Receptacles of a Kind Used in Agriculture; Ceramic Pots, Jars and Similar Articles of a Kind Used for the Conveyance or Packing of Goods (HSN 6909): This overarching HSN code covers various ceramic items.
  • Specific subheadings like 69091100, 69091200, 69091910, and 69091990 further detail ceramic wares for laboratory, chemical, or other technical uses, and notably, ceramic troughs, tubs, and similar receptacles used in agriculture.
  • 69099000 covers “Other” ceramic wares under this category.

All ceramic products mentioned under HSN 6909, including those used in agriculture, are subject to an 18% GST rate. This rate became effective from November 15, 2017 (with a prior revision on September 22, 2017).