India is known for its rich agricultural heritage, producing a wide variety of cereals, including rice, wheat, barley, and more, with the introduction of the Goods and Services Tax (GST) in July 2017. To navigate this complex landscape, farmers, traders, and consumers must comprehend the Harmonized System of Nomenclature (HSN) code and the corresponding GST rates for rice, wheat, barley and other cereals. Let’s delve into the GST rates and HSN codes for rice, wheat, barley, and other grains.
The Significance of HSN Codes
The Harmonized System of Nomenclature (HSN) is a numerical classification system used to categorise goods for taxation and trade purposes. It’s employed to streamline the taxation process, ensuring uniformity and accuracy in tax assessment. HSN codes consist of digits and denote specific product categories, helping businesses determine the appropriate GST rates and facilitating precise reporting for compliance.
HSN Codes for Rice, Wheat, Barley and other Cereals
The HSN codes for some common cereals in India:
1. Rice:
- HSN Code: 1006
- Product Description: Rice Rice In The Husk (Paddy Or Rough), Semi-Milled Or Wholly-Milled Rice, Whether Or Not Polished Or Glazed, Rice Broken Rice.
2. Wheat:
- HSN Code: 1001
- Product Description: Wheat and meslin (a mixture of wheat and rye).
3. Barley:
- HSN Code: 1003
- Product Description: Barley.
4. Other Cereals (e.g., maize, oats, millets, etc.):
- HSN Code: 1004
- Product Description: Oats, maize (corn), and other cereals.
GST Rates for Rice, Wheat, Barley and Other Cereals in India
GST Rates for Cereals
The GST rate applicable to cereals depends on factors such as the type of cereal, its processing, and its packaging.
Here are the GST rates for rice, wheat, barley, and other cereals:
1. Rice:
- Unbranded rice (i.e., not packaged and not sold under a brand name) is generally exempt from GST. It falls under the 0% tax slab.
- However, branded rice, which is packaged and sold under a specific brand name, is subject to GST. The applicable rate is 5%.
2. Wheat:
- Branded or unbranded, Wheat is exempt from GST and falls under the 0% tax slab.
3. Barley:
- Barley is treated similarly to rice. It is exempt from GST and falls under the 5% tax slab.
4. Other Cereals (e.g., maize, oats, millets, Popcorn, etc.):
- Like barley and rice, most other cereals are exempt from GST and fall under the 5% tax slab.
The GST rates mentioned above are subject to change based on government policies and notifications. Therefore, it’s advisable to be updated on the latest GST rates before making any transactions involving cereals.
Also Read: What Is The Work Contract HSN Code Under GST
Special Cases and Exemptions
While the GST rates mentioned earlier apply to the majority of cases, there are some exceptions and special provisions to be aware of:
1. Zero-rated Supplies for Export:
If cereals are exported from India, they are considered zero-rated supplies, which implies GST is not levied on the export of these goods. Exporters can claim a refund of the input GST paid on inputs and input services.
2. GST on Processed Cereals:
GST rates for processed cereals, such as packaged wheat flour or rice products, may differ from the rates mentioned above. These processed products may attract a higher GST rate, typically in the range of 5% to 18%, depending on factors like packaging and branding.
3. Composite Scheme for Small Traders:
Small traders with an annual turnover below a specified threshold have the option to opt for the Composition Scheme. Under this scheme, they pay GST at a reduced rate (usually 1%) on their turnover and are relieved from the hassles of detailed GST compliance.
| HSN Code | Description | Rate (%) | CESS (%) | Effective Date | Rate Revision |
|---|---|---|---|---|---|
| 1001 | WHEAT AND MESLIN – DURUM WHEAT : | 5% | 01/07/2017 | ||
| 1001 | WHEAT AND MESLIN – DURUM WHEAT : | 0% | 01/07/2017 | ||
| 100110 | DURUM WHEAT | 5% | 01/07/2017 | ||
| 10011010 | WHEAT AND MESLIN DURUM WHEAT : OF SEED QUALITY | 5% | 01/07/2017 | ||
| 10011090 | WHEAT AND MESLIN DURUM WHEAT : OTHER | 5% | 01/07/2017 | ||
| 100111 | DURUM WHEAT | 5% | 01/07/2017 | ||
| 10011100 | SEED | 5% | 01/07/2017 | ||
| 100119 | OTHER | 5% | 01/07/2017 | ||
| 10011900 | OTHER | 5% | 01/07/2017 | ||
| 100190 | OTHER | 5% | 01/07/2017 | ||
| 10019010 | WHEAT AND MESLIN OTHER : WHEAT OF SEED QUALITY | 5% | 01/07/2017 | ||
| 10019020 | WHEAT AND MESLIN OTHER : OTHER WHEAT | 5% | 01/07/2017 | ||
| 10019031 | WHEAT AND MESLIN OTHER : MESLIN : OF SEED QUALITY | 5% | 01/07/2017 | ||
| 10019039 | WHEAT AND MESLIN OTHER : MESLIN : OTHER | 5% | 01/07/2017 | ||
| 100191 | OTHER | 5% | 01/07/2017 | ||
| 10019100 | SEED | 5% | 01/07/2017 | ||
| 100199 | OTHER | 5% | 01/07/2017 | ||
| 10019910 | WHEAT | 5% | 01/07/2017 | ||
| 10019920 | MESLIN | 5% | 01/07/2017 | ||
| 1002 | RYE | 5% | 01/07/2017 | ||
| 1002 | RYE | 0% | 01/07/2017 | ||
| 100200 | RYE | 5% | 01/07/2017 | ||
| 10020010 | RYE RYE : OF SEED QUALITY | 5% | 01/07/2017 | ||
| 10020090 | RYE RYE : OTHER | 5% | 01/07/2017 | ||
| 100210 | RYE SEED | 5% | 01/07/2017 | ||
| 10021000 | SEED | 5% | 01/07/2017 | ||
| 100290 | OTHER | 5% | 01/07/2017 | ||
| 10029000 | OTHER | 5% | 01/07/2017 | ||
| 1003 | BARLEY | 5% | 01/07/2017 | ||
| 1003 | BARLEY | 0% | 01/07/2017 | ||
| 100300 | BARLEY | 5% | 01/07/2017 | ||
| 10030010 | BARLEY BARLEY : OF SEED QUALITY | 5% | 01/07/2017 | ||
| 10030090 | BARLEY BARLEY : OTHER | 5% | 01/07/2017 | ||
| 100310 | SEED | 5% | 01/07/2017 | ||
| 10031000 | SEED | 5% | 01/07/2017 | ||
| 100390 | OTHER | 5% | 01/07/2017 | ||
| 10039000 | OTHER | 5% | 01/07/2017 | ||
| 1004 | OATS | 5% | 01/07/2017 | ||
| 1004 | OATS | 0% | 01/07/2017 | ||
| 100400 | OATS | 5% | 01/07/2017 | ||
| 10040010 | OATS OATS : OF SEED QUALITY | 5% | 01/07/2017 | ||
| 10040090 | OATS OATS : OTHER | 5% | 01/07/2017 | ||
| 100410 | OATS SEED | 5% | 01/07/2017 | ||
| 10041000 | SEED | 5% | 01/07/2017 | ||
| 100490 | OTHER | 5% | 01/07/2017 | ||
| 10049000 | OTHER | 5% | 01/07/2017 | ||
| 1005 | MAIZE (CORN) | 5% | 01/07/2017 | ||
| 1005 | MAIZE (CORN) | 0% | 01/07/2017 | ||
| 10051000 | MAIZE (CORN) SEED | 5% | 01/07/2017 | ||
| 100590 | OTHER | 5% | 01/07/2017 | ||
| 10059000 | MAIZE (CORN)OTHER | 5% | 01/07/2017 | ||
| 10059011 | YELLOW | 5% | 01/07/2017 | ||
| 10059019 | OTHER | 5% | 01/07/2017 | ||
| 10059020 | FLINT CORN (ZEAMAYS VAR. INDURATA) | 5% | 01/07/2017 | ||
| 10059030 | POPCORN (ZEA MAYS VER,EVERTA) | 5% | 01/07/2017 | ||
| 10059090 | OTHER | 5% | 01/07/2017 | ||
| 1006 | RICE | 5% | 01/07/2017 | ||
| 1006 | RICE | 0% | 01/07/2017 | ||
| 100610 | RICE IN THE HUSK (PADDY OR ROUGH) | 5% | 01/07/2017 | ||
| 10061010 | RICE RICE IN THE HUSK (PADDY OR ROUGH) : OF SEED QUALITY | 5% | 01/07/2017 | ||
| 10061090 | RICE RICE IN THE HUSK (PADDY OR ROUGH) : OTHER | 5% | 01/07/2017 | ||
| 10062000 | RICE HUSKED (BROWN) RICE | 5% | 01/07/2017 | ||
| 100630 | SEMI-MILLED OR WHOLLY-MILLED RICE, WHETHER OR NOT POLISHED OR GLAZED | 5% | 01/07/2017 | ||
| 10063010 | RICE SEM-MILLED OR WHOLLY-MILLED RICE, WHETHER OR NOT POLISHED OR GLAZED : RICE, PARBOILED | 5% | 01/07/2017 | ||
| 10063020 | RICE SEMI-MILLED OR WHOLLY-MILLED RICE, WHETHER OR NOT POLISHED OR GLAZED : BASMATI RICE | 5% | 01/07/2017 | ||
| 10063090 | RICE SEMI-MILLED OR WHOLLY-MILLED RICE, WHETHER OR NOT POLISHED OR GLAZED : OTHER | 5% | 01/07/2017 | ||
| 10064000 | RICE BROKEN RICE | 5% | 01/07/2017 | ||
| 1007 | GRAIN SORGHUM | 5% | 01/07/2017 | ||
| 1007 | GRAIN SORGHUM | 0% | 01/07/2017 | ||
| 100700 | GRAIN SORGHUM | 5% | 01/07/2017 | ||
| 10070010 | GRAIN SORGHUM GRAIN SORGHUM : OF SEED QUALITY | 5% | 01/07/2017 | ||
| 10070090 | GRAIN SORGHUM GRAIN SORGHUM : OTHER | 5% | 01/07/2017 | ||
| 100710 | SEED | 5% | 01/07/2017 | ||
| 10071000 | SEED | 5% | 01/07/2017 | ||
| 100790 | OTHER | 5% | 01/07/2017 | ||
| 10079000 | OTHER | 5% | 01/07/2017 | ||
| 1008 | BUCKWHEAT, MILLET AND CANARY SEED; OTHER CEREALS | 5% | 01/07/2017 | ||
| 1008 | BUCKWHEAT, MILLET AND CANARY SEED; OTHER CEREALS | 0% | 01/07/2017 | ||
| 100810 | BUCKWHEAT | 5% | 01/07/2017 | ||
| 10081010 | BUCKWHEAT, MILLET AND CANARY SEED; OTHER CEREALS BUCKWHEAT : OF SEED QUALITY | 5% | 01/07/2017 | ||
| 10081090 | BUCKWHEAT, MILLET AND CANARY SEED; OTHER CEREALS BUCKWHEAT : OTHER | 5% | 01/07/2017 | ||
| 100820 | MILLET | 5% | 01/07/2017 | ||
| 10082011 | BUCKWHEAT, MILLET AND CANARY SEED; OTHER CEREALS MILLET : JAWAR : OF SEED QUALITY | 5% | 01/07/2017 | ||
| 10082019 | BUCKWHEAT, MILLET AND CANARY SEED; OTHER CEREALS MILLET : JAWAR : OTHER | 5% | 01/07/2017 | ||
| 10082021 | BUCKWHEAT, MILLET AND CANARY SEED; OTHER CEREALS MILLET : BAJRA : OF SEED QUALITY | 5% | 01/07/2017 | ||
| 10082029 | BUCKWHEAT, MILLET AND CANARY SEED; OTHER CEREALS MILLET : BAJRA : OTHER | 5% | 01/07/2017 | ||
| 10082031 | BUCKWHEAT, MILLET AND CANARY SEED; OTHER CEREALS MILLET : RAGI (FINGER MILLET) : OF SEED QUALITY | 5% | 01/07/2017 | ||
| 10082039 | BUCKWHEAT, MILLET AND CANARY SEED; OTHER CEREALS MILLET : RAGI (FINGER MILLET) : OTHER | 5% | 01/07/2017 | ||
| 100821 | MILLET SEED | 5% | 01/07/2017 | ||
| 10082110 | JAWAR | 5% | 01/07/2017 | ||
| 10082120 | BAJRA | 5% | 01/07/2017 | ||
| 10082130 | RAGI | 5% | 01/07/2017 | ||
| 100829 | OTHER | 5% | 01/07/2017 | ||
| 10082910 | JAWAR | 5% | 01/07/2017 | ||
| 10082920 | BAJRA | 5% | 01/07/2017 | ||
| 10082930 | RAGI | 5% | 01/07/2017 | ||
| 100830 | CANARY SEED | 5% | 01/07/2017 | ||
| 10083010 | BUCKWHEAT, MILLET AND CANARY SEED; OTHER CEREALS CANARY SEED : OF SEED QUALITY | 5% | 01/07/2017 | ||
| 10083090 | BUCKWHEAT, MILLET AND CANARY SEED; OTHER CEREALS CANARY SEED : OTHER | 5% | 01/07/2017 | ||
| 100840 | FONIO | 5% | 01/07/2017 | ||
| 10084000 | FONIO | 5% | 01/07/2017 | ||
| 100850 | QUINOA | 5% | 01/07/2017 | ||
| 10085000 | QUINOA (CHENOPODIUM QUINOA) | 5% | 01/07/2017 | ||
| 100860 | TRITICALE | 5% | 01/07/2017 | ||
| 10086000 | TRITICALE | 5% | 01/07/2017 | ||
| 100890 | OTHER CEREALS | 5% | 01/07/2017 | ||
| 10089010 | BUCKWHEAT, MILLET AND CANARY SEED; OTHER CEREALS OTHER CEREALS : OF SEED QUALITY | 5% | 01/07/2017 | ||
| 10089090 | BUCKWHEAT, MILLET AND CANARY SEED; OTHER CEREALS OTHER CEREALS : OTHER | 5% | 01/07/2017 | ||
| 1009 | OTHER | 5% | 01/07/2017 | ||
| 10091090 | OTHER | 5% | 01/07/2017 |
The Bottom Line
Understanding the HSN codes and GST rates for cereals in India is essential for businesses and consumers in the agricultural sector. While rice, wheat, and barley are typically exempt from GST, other factors such as branding, processing, and packaging can influence the applicable tax rate. Additionally, for exports, cereals are considered zero-rated supplies, making them more competitive in international markets.
It’s essential to stay updated with the latest GST rates and regulations as they may change over time due to government policies and economic conditions. This knowledge will help farmers, traders, and consumers make informed decisions and ensure compliance with the tax laws of the country.
Businesses must be aware of the HSN codes applicable to their products, as these codes determine the associated tax rates and other regulatory requirements.
Frequently Asked Questions:
-
What is the GST rate on grains?
Cereals Taxed at 5% GST Rate
GST on food grains is 5% if supplied by being put into a container and then segregated into different units.
-
What is barley in the food industry?
These products are used in soups, breakfast cereals, and stews, as tea or coffee substitutes after roasting, and as rice extenders. They can also be milled into flour and used in baby foods, porridge, and baked goods when blended with wheat flour.
-
What is the GST rate of soybeans?
The Goods and Services Tax (GST) is a tax levied on the supply of goods and services in India. The GST rate on soybeans is 5%. This rate applies to all soya beans, including raw, cooked, or processed soya beans.
-
What is HSN of Sago?
HS Codes 11081910: HS Classifications of Sago.
