Waste wood HSN Code

Understanding Waste Wood HSN Codes and GST Rates

In a world increasingly focused on sustainability, the proper classification and taxation of waste materials, including waste wood, are becoming more important. For businesses involved in timber, recycling, or biomass industries, knowing the correct HSN (Harmonized System of Nomenclature) code for waste wood is crucial for accurate GST (Goods and Services Tax) compliance in India.

The HSN system is a globally recognized method for categorizing traded products. In India, it directly determines the GST rates applicable to various goods. When it comes to “waste wood,” the data highlights its primary classification under Chapter 44: Wood and articles of wood; wood charcoal, specifically focusing on its use as fuel or raw material for other products.

The Waste Wood HSN Classifications

The provided data clearly outlines several HSN codes related to waste wood, sawdust, and wood chips, along with their consistent GST rates.

• Chapter 44: Wood and articles of wood; wood charcoal
  • This chapter is the main home for waste wood. HSN codes like 4401, 44013900, 44011010, 44013100, 44012100, 44011090, 44014000, and 44012200 all relate to “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.”
  • This broad category encompasses various forms of waste wood, including sawdust, wood waste and scrap (whether agglomerated into briquettes or pellets or not), and wood chips (coniferous or non-coniferous).
  • Crucially, all these forms of waste wood consistently attract a 5% GST rate. This lower rate encourages the recycling and reuse of wood waste, often for fuel or other industrial applications.
• Chapter 68: Articles of stone, plaster, cement, asbestos, mica or similar materials
  • HSN codes 68080000 and 6808 describe “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.”
  • These codes refer to products made from waste wood (like sawdust or chips) that are agglomerated with other mineral binders to form construction materials. These finished products have an 18% GST rate. This shows a higher tax for manufactured goods compared to raw waste wood.
• Chapter 48: Paper and paperboard; articles of paper pulp, of paper or of paperboard
  • HSN 48237020 mentions “Moulded Or Pressed Article Of Paper Pulp : Wood Pulp Board.” While not directly “waste wood,” it’s a product derived from wood pulp, which can originate from wood waste. It carries an 18% GST rate.
• Chapter 47: Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard
  • HSN codes like 47061000, 47069200, 47069300, and 4706 cover “Pulps Of Fibres Derived From Recovered (Waste And Scrap) Paper Or Paperboard Or Of Other Fibrous Cellulosic Material.” These relate to pulp derived from waste wood or paper. These generally have a 12% GST rate.
  • Furthermore, HSN codes like 47072000, 47073000, 4707, and 47079000 specifically cover “Recovered (Waste And Scrap) Paper Or Paperboard,” which can sometimes include wood waste components. These attract a 5% GST rate.

GST Rates for Waste Wood: A Clear Distinction

The GST rate for waste wood in India largely depends on its form and intended use:

• Raw Waste Wood, Sawdust, Wood Chips, Fuel Wood: These typically attract a low 5% GST rate. This encourages their collection and use, particularly as fuel or raw material.
• Products Manufactured from Waste Wood (Agglomerated Boards): When waste wood is processed and combined with other binders to create construction materials (like panels or boards), the GST rate increases to 18%.
• Wood Pulp from Waste: Pulp derived from waste wood or paper generally falls into the 12% GST category, while recovered waste paper or paperboard itself remains at 5% GST.

This differentiated taxation reflects the value addition and transformation of waste wood into new products.