Chocolate HSN Code

Understanding the HSN Code for Chocolate

Chocolate, in its myriad forms, is a universal delight. From rich dark bars to creamy milk chocolates and cocoa-based preparations, it’s a staple in homes and industries. For anyone dealing with chocolate products in India, understanding its Harmonized System of Nomenclature (HSN) code is vital for accurate Goods and Services Tax (GST) compliance. The HSN code for chocolate largely depends on its composition and form.

HSN Codes for Chocolate and Cocoa Preparations

The primary HSN chapter for chocolate and all food preparations containing cocoa is Chapter 18: Cocoa and cocoa preparations. This chapter covers a broad spectrum of chocolate products, generally attracting an 18% GST rate.

Here’s a breakdown of the specific HSN codes within this chapter:

• Chocolate And Other Food Preparations Containing Cocoa (General): HSN 1806. This is the overarching code for all chocolate products, with an 18% GST rate, effective from November 15, 2017.
• Cocoa Powder, Containing Added Sugar Or Other Sweetening Matter: HSN 18061000. This covers sweetened cocoa powder, commonly used in baking or for making hot chocolate, also at 18% GST.
• Preparations in Blocks, Slabs or Bars:
  • Weighing More Than 2 Kg Or In Liquid, Paste, Powder, Granular Or Other Bulk Form In Containers Or Immediate Packings, Of A Content Exceeding 2 Kg: HSN 18062000. This code applies to chocolate in bulk forms, intended for industrial or commercial use, at 18% GST.
  • Other, In Blocks, Slabs Or Bars (Consumer Pack):
    • Not Filled: HSN 18063200. This covers standard chocolate bars that are not filled, also at 18% GST.
    • Filled: HSN 18063100. This covers chocolate bars with fillings (e.g., caramel, nuts), also at 18% GST.
• Other Chocolate and Chocolate Products (Specific Types):
  • Chocolate And Chocolate Products: HSN 18069010. This is a general category for various finished chocolate products, at 18% GST.
  • Sugar Confectionary Containing Cocoa: HSN 18069020. This covers sweets that are primarily sugar confectionery but also contain cocoa, at 18% GST.
  • Spreads Containing Cocoa: HSN 18069030. This applies to chocolate spreads like Nutella, at 18% GST.
  • Preparations Containing Cocoa For Making Beverages: HSN 18069040. This includes items like hot chocolate mixes, at 18% GST.
  • Other (Miscellaneous Cocoa Preparations): HSN 18069090. This acts as a catch-all for other cocoa preparations not specifically listed, at 18% GST.

HSN Codes for Cocoa in Raw/Processed Forms

Beyond finished chocolate products, the data also provides HSN codes for raw or semi-processed cocoa components, which generally have a lower GST rate:

• Cocoa Paste, Whether Or Not Defatted:
  • Wholly Or Partly Defatted: HSN 18032000. This is cocoa paste from which fat has been removed, at 5% GST.
  • Not Defatted: HSN 18031000. This is cocoa paste with its fat content intact, also at 5% GST.
• Cocoa Shells, Husks, Skins And Other Cocoa Waste: HSN 18020000. This covers by-products of cocoa processing, at 5% GST.

These lower rates likely apply to intermediate products in the chocolate manufacturing process, not the final consumer goods.

Distinguishing Chocolate from Other Sugar Confectionery

It’s crucial to differentiate chocolate (containing cocoa) from other types of sugar confectionery. Chapter 17: Sugars and sugar confectionery covers items that are primarily sugar-based but do not contain cocoa, including “White Chocolate.”

• Sugar Confectionery (Including White Chocolate), Not Containing Cocoa: HSN 1704. This broad category for non-cocoa confectionery generally has an 18% GST rate, effective from January 25, 2018.
  • Boiled Sweets, Whether Or Not Filled: HSN 17049020, at 12% GST (note the rate change on Jan 25, 2018, and Nov 15, 2017).
  • Toffees, Caramels And Similar Sweets: HSN 17049030, at 18% GST.
  • Chewing Gum, Whether Or Not Sugar Coated: HSN 17041000, at 18% GST.
  • Jelly Confectionary: HSN 17049010, at 18% GST.
  • Other (miscellaneous non-cocoa confectionery): HSN 17049090, at 18% GST.

This distinction is important because while “white chocolate” is often considered chocolate by consumers, for HSN purposes, if it contains no cocoa, it falls under sugar confectionery.