Chana HSN Code

Understand the Chana HSN Code for GST

For businesses in India dealing with “Chana” (chickpeas or gram), understanding the correct HSN (Harmonized System of Nomenclature) code is vital for accurate GST compliance and smooth trade operations. The HSN system provides a globally recognized method for classifying goods, ensuring uniformity in product categorization for taxation and customs.

Cracking the Chana HSN Code and GST Rate

When it comes to Chana, which is a type of dried leguminous vegetable, its HSN classification falls under Chapter 07, specifically dedicated to “Edible vegetables and certain roots and tubers.”

Based on the provided data, the most appropriate and direct HSN code for Chana (chickpeas/garbanzos) is 07132000.

This code falls under the heading “Dried Leguminous Vegetables, Shelled, Whether Or Not Skinned Or Split – Chickpeas (Garbanzos).” This precisely identifies Chana in its shelled and dried form.

Chana, classified under HSN code 07132000, attracts a 5% GST rate. This rate became effective on July 1, 2017.

It’s important to note the other relevant HSN codes for “Dried Leguminous Vegetables” mentioned in the data:

• 07139090: “Dried Leguminous Vegetables, Shelled, Whether Or Not Skinned Or Split – Other – Other.” This is a general “other” category for dried leguminous vegetables not specifically mentioned. While Chana could potentially fall here if not specifically identified, 07132000 is much more precise.
• 07133990: “Dried Leguminous Vegetables, Shelled, Whether Or Not Skinned Or Split – Beans (Vigna Spp., Phaseolus Spp.) : Other : Other.” This code is specifically for “Beans” (like moong, urad, rajma, etc.) and not Chana.

Therefore, for direct “Chana” (chickpeas), HSN 07132000 is the correct and most specific classification.

Why HSN Codes are Essential for Your Chana Business

Accurate HSN code classification is fundamental for several reasons:

• GST Compliance: The HSN code directly determines the applicable GST rate, ensuring businesses charge and remit the correct amount of tax to the government, avoiding penalties.
• Seamless Trade: HSN codes provide a universal language for goods, simplifying customs procedures for both domestic and international trade, leading to smoother transactions.
• Preventing Disputes: Clear classification reduces the likelihood of disagreements with tax authorities regarding product categorization and tax applicability.
• Business Operations: Proper HSN classification aids in efficient inventory management, accurate pricing, and effective supply chain operations.