Garam masala HSN Code

Undertstand the Right HSN Code for Garam Masala

If you are a business dealing in spices, whether you’re a manufacturer, retailer, or exporter, knowing the correct HSN code and GST rate for garam masala is essential for proper tax compliance. Garam masala, a staple in Indian kitchens, is a blend of various whole and ground spices. Its classification depends on its form and whether it is branded or unbranded.

The Garam Masala as a Mixed Spice

Garam masala is a mixed spice, and therefore, it falls under Chapter 9 of the HSN, which is dedicated to “Spices.” This chapter includes various individual spices like ginger, saffron, turmeric, and thyme.

• The most common HSN code for mixed spices and seasonings, including garam masala, is 09109990.
• This HSN code is part of the broader heading 0910, which covers curry and other spices.

Understand the GST Rate for Garam Masala

The GST rate for garam masala can vary based on packaging and branding.

• Loose or Unbranded Garam Masala: If you sell garam masala in a loose, unbranded form, it is generally exempt from GST, with a 0% GST rate.
• Branded and Packaged Garam Masala: When sold under a brand name in pre-packaged containers, garam masala is subject to a 5% GST rate. This is the most common rate for packaged spices.
• Highly Processed Spice Mixes: In some cases, highly processed or ready-to-cook spice blends can attract a 12% GST rate, especially if they are heavily advertised and marketed as a specialized food preparation. However, for a standard garam masala mix, the 5% rate is the most prevalent.

Avoid Confusion with Pan Masala

It is very important to distinguish garam masala from pan masala. Pan masala, a chewing tobacco preparation, falls under a different HSN code in Chapter 21, “Miscellaneous edible preparations.”

• The HSN code for Pan Masala is 21069020.
• Pan masala has a significantly higher GST rate of 28% and a steep 60% CESS.

This distinction is critical for your invoicing and tax calculations. Garam masala is a cooking spice, while pan masala is a processed product with a high sin tax.

To ensure accuracy, always verify the product’s composition and intended use. For any tax-related questions, consult the latest GST notifications or a tax professional.