Coolant HSN Code

Understanding the Coolant HSN Code

For businesses dealing with coolants, understanding the correct HSN (Harmonized System of Nomenclature) code and its associated GST (Goods and Services Tax) rate is essential for smooth operations and tax compliance. This guide will clarify the HSN code for coolants and the applicable GST.

Discover the Coolant HSN Code

Coolants, often used in vehicles and other machinery to regulate temperature, fall under a specific HSN code. The relevant HSN code for “Anti-Freezing Preparations And Prepared De-Icing Fluids” is 38200000.

This code resides within Chapter 38 of the HSN, which covers “Miscellaneous chemical products.” This classification makes sense as coolants are indeed prepared chemical mixtures designed for a specific purpose.

Grasp the GST Rate for Coolant

As per the Indian GST regime, coolants classified under HSN code 38200000 attract a GST rate of 18%. This rate has been effective since November 15, 2017. There is no CESS mentioned for this particular HSN code.

Important Considerations for Coolant Businesses

• Accurate Classification: Always ensure you use the correct HSN code 38200000 for anti-freezing and de-icing coolants. Correct classification is vital to avoid discrepancies and penalties.
• GST Compliance: Apply the 18% GST rate accurately on all your coolant transactions.
• Record Keeping: Maintain thorough records of your sales, purchases, HSN codes, and GST calculations for audit purposes.

By adhering to these guidelines, businesses can effectively manage their coolant transactions, ensuring full compliance with GST regulations in India.