GST rates and HSN code for Lays Chips.
| Chapter | Description | HSN Code | Rate (%) | CESS (%) | Effective Date | Rate Revision |
|---|---|---|---|---|---|---|
| Wood and articles of wood; wood charcoal | 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 | 4401 | 5% | – | 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 O | 44013900 | 5% | – | 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, In | 44011010 | 5% | – | 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 O | 44013100 | 5% | – | 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 : Coniferous | 44012100 | 5% | – | 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, In | 44011090 | 5% | – | 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 | 4401 | 0 | – | 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 : Non-Coniferous | 44012200 | 5% | – | 01/07/2017 | – | |
| Oil seeds and oleaginous fruits, miscellaneous grains,seeds and fruit; industrial or medical plants; straw and fodder | Plants 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 Dust | 12119050 | 5% | – | 01/07/2017 | – |
| Articles of stone, plaster, cement, asbestos, mica or similar materials | 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 Binders | 68080000 | 18% | – | 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 Binders | 6808 | 18% | – | 15/11/2017 – 1/07/2017 | – | |
| Iron and steel | Ferrous 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 Bundles | 72044100 | 18% | – | 01/07/2017 | – |
| Preparations of cereals, flour, starch or milk; pastrycooks products | Prepared Foods Obtained By The Swelling Or Roasting Of Cereals Or Cereal Products (For Example, Corn Flakes); Cereals [Other Than Maize (Corn) ] In Grain Form Or In The Form Of Flakes Or Other Worked Grains (Except Flour, Groats And Meal), Pre – Cooked O | 19049000 | 18% | – | 01/07/2017 | – |
| Miscellaneous edible preparations | Food Preparations Not Elsewhere Specified Or Included – Other : Other : Other | 21069099 | 18% | – | 15/11/2017 22/09/2017 1/07/2017 | – |
Lays chips are a household name, synonymous with savory snacking. For businesses involved in their trade, from large distributors to local kirana stores, knowing the correct HSN (Harmonized System of Nomenclature) code and the applicable GST (Goods and Services Tax) rate is essential for accurate invoicing and compliance.
The HSN system classifies products for customs and taxation globally. When it comes to Lays potato chips, they are typically categorized under Chapter 21, “Miscellaneous edible preparations,” or sometimes under Chapter 19, “Preparations of cereals, flour, starch or milk; pastrycooks products.”
Based on available information and common practices for processed snack foods, Lays chips, being a prepared food item, predominantly fall under:
It is important to note that the provided data specifically mentions HSN codes related to “wood chips” (Chapter 44), “sandalwood chips” (Chapter 12), “shavings, chips, particles” of wood or other materials (Chapter 68), and “turnings, shavings, chips” of ferrous waste (Chapter 72). These are not relevant to edible potato chips like Lays.
As for the GST rate, pre-packaged and labelled savory snacks, including potato chips like Lays, generally attract a 12% GST rate. This has been clarified through various rulings and notifications, moving away from previous ambiguities that sometimes applied a lower rate to unbranded or loose items.
Businesses must ensure they apply the correct HSN code and GST rate to avoid discrepancies and ensure compliance with Indian tax laws. Always refer to the latest GST notifications and rulings for the most precise and current information.
The most common HSN code for Lays chips is 21069099.
Lays chips typically attract a 12% GST rate.
The 12% GST rate on unbranded pre-packaged namkeens and salted/flavored potato chips became applicable through AAR rulings and notifications that reclassified such items under Schedule-II.
While some unbranded namkeens initially had a lower GST, recent rulings indicate that even unbranded pre-packaged and labelled potato products typically attract 12% GST.
Yes, under GST regulations, businesses are generally required to mention the HSN code on their invoices, depending on their turnover.
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