Dhan HSN Code

Understanding “Dhan” HSN Codes: More Than Just Rice

The term “Dhan” in India commonly refers to paddy, which is unhusked rice. It’s the raw form of rice, still encased in its husk, harvested directly from the fields. Understanding the correct Harmonized System of Nomenclature (HSN) code for Dhan is crucial for farmers, traders, and millers to ensure accurate Goods and Services Tax (GST) compliance.

While the provided data lists HSN codes for various spices and essential oils that contain “Dhan” or similar-sounding terms (like Coriander seeds – 09092190), it’s important to recognize that these are distinct from paddy. The “Dhan” in “Dhana Dal” (roasted coriander seeds) or “Coriander Dhania” refers to coriander, a spice, and not the cereal grain.

The primary HSN classification for Dhan (paddy or unhusked rice) falls under Chapter 10 of the HSN, which specifically covers “Cereals.” Within this chapter, the most relevant HSN code is:

• 100610: This heading specifically denotes “Rice in husk (paddy or rough).”
  • 10061010: This sub-code is for “Of seed quality” paddy.
  • 10061090: This sub-code is for “Other” paddy, which includes paddy not intended for sowing.

Regarding GST rates for Dhan (paddy):

• Unbranded and unpackaged Dhan (paddy) is typically exempt from GST (0%). This is a significant aspect to support farmers and keep essential food items affordable.
• However, if Dhan is pre-packaged and labelled, it may attract a 5% GST rate. This distinction was introduced to cover branded and packaged agricultural commodities. The effective date for these rates generally goes back to July 1, 2017, with later revisions clarifying the “pre-packaged and labelled” criteria, notably from July 18, 2022.

Therefore, when dealing with “Dhan,” always confirm whether it refers to paddy (unhusked rice) or another product like coriander. For paddy, the HSN code will be within Chapter 10, and the GST rate will depend on its packaging and branding.