Chips HSN Code

GST rates and HSN code for Chips.

ChapterDescriptionHSN CodeRate (%)CESS (%)Effective DateRate Revision
Wood and articles of wood; wood charcoalFuel Wood, In Logs, In Billets, In Twigs, In Faggots Or In Similar Forms; Wood In Chips Or Particles; Sawdust And Wood Waste And Scrap, Whether Or Not Agglomerated In Logs, Briquettes, Pellets Or Similar Forms44015%01/07/2017
Fuel Wood, In Logs, In Billets, In Twigs, In Faggots Or In Similar Forms; Wood In Chips Or Particles; Sawdust And Wood Waste And Scrap, Whether Or Not Agglomerated In Logs, Briquettes, Pellets Or Similar Forms – Sawdust And Wood Waste And Scrap, Whether O440139005%01/07/2017
Fuel Wood, In Logs, In Billets, In Twigs, In Faggots Or In Similar Forms; Wood In Chips Or Particles; Sawdust And Wood Waste And Scrap, Whether Or Not Agglomerated In Logs, Briquettes, Pellets Or Similar Forms- Fuel Wood, In Logs, In Billets, In Twigs, In440110105%01/07/2017
Fuel Wood, In Logs, In Billets, In Twigs, In Faggots Or In Similar Forms; Wood In Chips Or Particles; Sawdust And Wood Waste And Scrap, Whether Or Not Agglomerated In Logs, Briquettes, Pellets Or Similar Forms – Sawdust And Wood Waste And Scrap, Whether O440131005%01/07/2017
Fuel Wood, In Logs, In Billets, In Twigs, In Faggots Or In Similar Forms; Wood In Chips Or Particles; Sawdust And Wood Waste And Scrap, Whether Or Not Agglomerated In Logs, Briquettes, Pellets Or Similar Forms – Wood In Chips Or Particles : Coniferous440121005%01/07/2017
Fuel Wood, In Logs, In Billets, In Twigs, In Faggots Or In Similar Forms; Wood In Chips Or Particles; Sawdust And Wood Waste And Scrap, Whether Or Not Agglomerated In Logs, Briquettes, Pellets Or Similar Forms- Fuel Wood, In Logs, In Billets, In Twigs, In440110905%01/07/2017
Fuel Wood, In Logs, In Billets, In Twigs, In Faggots Or In Similar Forms; Wood In Chips Or Particles; Sawdust And Wood Waste And Scrap, Whether Or Not Agglomerated In Logs, Briquettes, Pellets Or Similar Forms4401001/07/2017
Fuel Wood, In Logs, In Billets, In Twigs, In Faggots Or In Similar Forms; Wood In Chips Or Particles; Sawdust And Wood Waste And Scrap, Whether Or Not Agglomerated In Logs, Briquettes, Pellets Or Similar Forms – Wood In Chips Or Particles : Non-Coniferous440122005%01/07/2017
Oil seeds and oleaginous fruits, miscellaneous grains,seeds and fruit; industrial or medical plants; straw and fodderPlants And Parts Of Plants (Including Seeds And Fruits), Of A Kind Used Primarily In Perfumery, In Pharmacy Or For Insecticidal, Fungicidal Or Similar Purpose, Fresh Or Dried, Whether Or Not Cut, Crushed Or Powdered Other : Sandalwood Chips And Dust121190505%01/07/2017
Articles of stone, plaster, cement, asbestos, mica or similar materialsPanels, Boards, Tiles, Blocks And Similar Articles Of Vegetable Fibre, Of Straw Or Of Shavings, Chips, Particles, Sawdust Or Other Waste, Of Wood, Agglomerated With Cement, Plaster Or Other Mineral Binders6808000018%15/11/2017 – 1/07/2017
Panels, Boards, Tiles, Blocks And Similar Articles Of Vegetable Fibre, Of Straw Or Of Shavings, Chips, Particles, Sawdust Or Other Waste, Of Wood, Agglomerated With Cement, Plaster Or Other Mineral Binders680818%15/11/2017 – 1/07/2017
Iron and steelFerrous Waste And Scrap; Remelting Scrap Ingots Of Iron Or Steel – Other Waste And Scrap : Turnings, Shavings, Chips, Milling Waste, Saw Dust, Fillings, Trimmings And Stampings, Whether Or Not ` In Bundles7204410018%01/07/2017

Understand the HSN Code for Chips Under GST

If you’re dealing with “chips” in your business, understanding their Harmonized System of Nomenclature (HSN) code is essential for navigating India’s Goods and Services Tax (GST) system. However, the term “chips” is broad and can refer to various products made from different materials. This data highlights the HSN codes and GST rates for wood chips, sandalwood chips, and metal chips.

Identify HSN Codes for Different Types of Chips

The provided data reveals that the HSN code and GST rate for “chips” vary significantly depending on the material:

  • Wood Chips: These are classified under Chapter 44 (“Wood and articles of wood; wood charcoal”). The specific HSN codes and the 5% GST rate include:
    • 4401
    • 44013900
    • 44011010
    • 44013100
    • 44012100 (Coniferous)
    • 44011090
    • 44012200 (Non-Coniferous)
  • Sandalwood Chips: These fall under Chapter 12 (“Oil seeds and oleaginous fruits…”). The HSN code is 12119050 with a 5% GST rate.
  • Wood Chips Agglomerated with Mineral Binders: These are classified under Chapter 68 (“Articles of stone, plaster, cement…”). The HSN code is 68080000 (also mentioned as 6808) with an 18% GST rate.
  • Metal Chips (Turnings, Shavings, etc. of Iron or Steel): These are classified under Chapter 72 (“Iron and steel”). The HSN code is 72044100 with an 18% GST rate.

As you can see, the GST rate for “chips” can be either 5% or 18%, depending on the material and processing.

Recognize the Importance of Specifying the Type of Chips

Using the correct HSN code is crucial because:

  • It determines the applicable GST rate. Applying the wrong rate can lead to incorrect tax payments.
  • It ensures compliance with GST regulations. Accurate HSN codes are required for invoices and GST returns.
  • It facilitates clear communication in business transactions.

FAQs

What is the GST rate for wood chips?

The GST rate for wood chips is 5%.

What is the HSN code for coniferous wood chips?

The HSN code for coniferous wood chips is 44012100.

What is the GST rate for sandalwood chips?

The GST rate for sandalwood chips is 5%.

Why is it important to specify the material when dealing with “chips” for GST purposes?

Specifying the material is crucial because different materials of “chips” have different HSN codes and thus different GST rates.

What is the GST rate for metal chips of iron or steel?

The GST rate is 18%.

What is the HSN code for wood chips agglomerated with cement?

The HSN code is 68080000.

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