Waste Oil HSN Code

Understanding the Waste Oil HSN Code and GST Rates

“Waste oil” is a broad term, and its HSN (Harmonized System of Nomenclature) classification and corresponding GST (Goods and Services Tax) rates in India depend heavily on its origin and nature. Businesses dealing with various forms of waste oil, whether from industrial processes, food production, or animal byproducts, need to accurately classify these materials for proper tax compliance.

The provided data predominantly focuses on “Oil-Cake And Other Solid Residues” resulting from oil extraction, which are indeed a form of waste from oil production. However, it’s important to distinguish between these solid residues and actual “waste oil” in liquid form.

Let’s break down how the data helps classify waste from oil and what general HSN codes apply to other forms of waste oil.

The Waste from Oil Extraction

The majority of the provided data falls under Chapter 23: Residues and waste from the food industries; prepared animal fodder. This chapter is highly relevant to byproducts of vegetable oil extraction.

• 2304 & 2305: These headings specifically cover “Oil-Cake And Other Solid Residues, Whether or Not Ground Or In The Form Of Pellets, Resulting From The Extraction Of Soyabean Oil (230400, 23040010, 23040090)” and “ground-Nut Oil (23050020, 23050090).”
• 2306: This heading encompasses “Oil-Cake And Other Solid Residues… Resulting From The Extraction Of Vegetable Fats Or Oils, Other Than Those Of Heading 2304 Or 2305.” This includes various expeller and solvent-extracted oil cakes from:
  • Mustard Seeds (23069012)
  • Niger Seeds (23069013)
  • Castor Seeds (23069017)
  • Neem Seeds (23069018)
  • Other Seeds (23069019)
  • Cotton Seeds (23061020, 23061010)
  • Coconut Or Copra (23065010)
  • Sunflower Seeds (23063020)
  • Other solvent extracted varieties (23069023, 23069026, 23069028)
  • Other residues (23069090)

A consistent theme across all these HSN codes for oil cakes and solid residues from vegetable oil extraction is a 5% GST rate. This low rate encourages the repurposing of these byproducts, often as animal feed or fertilizer.

Addressing Other Forms of Waste Oil

While the provided data is rich in information about oil cakes, it includes one specific entry that touches upon liquid waste from animal fats:

• Chapter 15: Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes
  • 15060010: “Other Animal Fats And Oils And Their Fractions… : Neats Foot Oil And Fats From Bone Or Waste.” This specifically covers fats/oils derived from animal waste. This item attracts a 12% GST rate. This suggests that processed waste animal fats/oils might have a higher tax rate than solid vegetable oil residues.

It is important to note that the term “waste oil” can also refer to used lubricating oils (like engine oil) or other industrial waste oils. These types of waste oils typically fall under Chapter 27: Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes, usually under headings like 2710 (Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, other than waste oils), and specifically, 27109100 for “Waste oils containing polychlorinated biphenyls (PCBs), terphenyls (PCTs) or polybrominated biphenyls (PBBs)” and 27109900 for “Other waste oils.” These waste oils usually attract a higher GST rate, often 18% or even 28%, reflecting their hazardous nature and potential for re-refining. Since the provided data does not cover these specific HSN codes, this information comes from external knowledge about HSN classification for waste oils.