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written by Khatabook | December 10, 2021

What is the GST Rate and HSN Code for Grains and Cereals?

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Table of Content


HSN is an abbreviation for the Harmonized System of Nomenclature. The WCO (World Customs Organization) established and industrialized HSN in 1988. Since then, five adjustments have been made all over the world. More than 5000 items are listed in the HSN code, used in more than 150 countries. This 6-digit HSN code can be used to identify over 5,000 different commodities and are also used for understanding tax for that item.. Later, Customs and Central Excise added two extra digits to the HSN code for the search to be more accurate. It is a versatile indirect tax device that is widely accepted around the world. The WCO presently monitors more than 95% of the industry.

Use of HSN Code

Following the establishment of the Goods and Services Tax (GST), India's enactment of the HSN code puts the country on a level with other countries using HSN for years. To standardize GST, India used the HSN code. This has also reduced the cost of international trade by bringing trade processes closer together. The HSN encourages every Indian taxpayer to look into the GST rate by using the code. As a result, the system will automatically compute the GST tax rate applicable to the products, shortening and clarifying India's trade-related techniques. As a result, the correct search for HSN codes must be considered throughout the GST Return filing process.

What happens if you use the HSN Code incorrectly?

 When you declare an incorrect code as an exporter, it can cause problems with your shipment during customs inspection. Import possibilities may be denied, custom duty assessments may be high, and non-compliance penalties may be imposed, among other issues. The buyer would not be able to collect their input tax credit if they used an inaccurate HSN Code under GST. According to Section 31, an invoice must be error-free throughout the entire process, including appropriate HSN Code categorisation for declaring the input tax credit. 

Relationship of HSN code and GST rate

  • HSN code helps in levy and collection of GST
  • HSN code helps in determining GST rate and value of tax
  • It helps in filing returns under GST.

GST rate and HSN code for cereals

GST rate and HSN code for cereals fall under section 2 of chapter 10.

If the trader deals in Cereals, the HSN Code for the Cereals must be used on the invoice or in the GST Returns to identify the Cereals.

Section 2 –  Chapter 10

  • Items that are listed in this HSN Code’s Chapter 10 will be categorised accordingly. For instance, if grains are present, whether in the ear or on the stalk if it’s in the chapter, it will be listed. 
  • Grain that has been hulled or otherwise worked is not covered in this chapter.
  •  On the other hand, husked, milled, polished, glazed, parboiled, or broken rice remains in heading 1006.
  • Sweet corn is not included in heading 1005.

HSN code for cereals including HSN Code Rice, Maize HSN Code, Wheat HSN Code

The table given below shows the different HSN codes for various cereals.

Description of goods

HSN CODE

wheat and meslin

1001

Rye

1002

Barley

1003

Oats

1004

Maise corn

1005

Rice

1006

Grain Sorghum

1007

Buckwheat Millet and canary seeds, other cereals

1008

Fonio

100840

Quinoa

100850

Triticale

100860

Also Read: Effect of GST on the Indian Economy

GST tax rates for cereals

The tax rate given below includes GST Rate for Rice, GST Rate on wheat, etc.

Description of goods

GST rates

Wheat and Meslin

Wheat and meslin packed in unit containers and: (a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available, except where any actionable claim or enforceable right in respect of such brand name has been voluntarily waived, subject to the conditions

5%

 wheat and meslin other than those stored in a single container

Nil

Rye packed in a unit container and: (a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available, other than those where any actionable claim or enforceable right in respect of such brand name has been voluntarily waived, subject to the conditions.

5%

Rye other than those stored in a single container

Nil

a ) Barley packed in a unit container and a) bearing a registered brand name; or b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available, other than those where any actionable claim or enforceable right in respect of such brand name has been voluntarily waived, subject to the conditions.

5%

Barley  other than those stored in a single container

Nil

Oats packed in unit containers and: (a) bearing a registered brand name; or (b) bearing a brand name for which an actionable claim or enforceable right in a court of law exists, other than those for which any actionable claim or enforceable right in respect of such brand name has been voluntarily waived, subject to the conditions.

5%

  Oats other than those stored in a single container

Nil

a) Maise corn bearing a registered brand name; or b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available, other than those where any actionable claim or enforceable right in respect of such brand name has been voluntarily waived, subject to the conditions.

5%

  Maise corn other than those stored in a single container

Nil

Rice packed in unit containers and: (a) bearing a registered brand name; or (b) bearing a brand name for which an actionable claim or enforceable right in a court of law exists, other than those for which any actionable claim or enforceable right in respect of such brand name has been voluntarily waived, subject to the conditions.

5%

 Rice other than those stored in a single container

Nil

Grain sorghum packed in unit containers and: (a) bearing a registered brand name; or (b) bearing a brand name for which an actionable claim or enforceable right in a court of law exists, other than those for which any actionable claim or enforceable right in respect of such brand name has been voluntarily waived, subject to the conditions.

5%

 Grain sorghum other than those stored in a single container

Nil

Buckwheat, millet, and canary seed; other grains including Jawar, Bajra, and Ragi are stored in a unit container, and - (a) bearing a registered brand name; or (b) bearing a brand name for which an actionable claim or enforceable right in a court of law exists, other than those for which any actionable claim or enforceable right in respect of such brand name has been voluntarily waived, subject to the conditions.

5%

Other cereals not put up in a unit container include buckwheat, millet, and canary seed; other cereals like Jawar, Bajra, and Ragi.

Nil

Fonio

5%

Quinoa

5%

Triticale

5%

Millet

5%

Also Read: New GST Returns - Forms, Invoices, ITC, Filing System Explained

Conclusion

The HSN system is not only beneficial to Customs agents, but it is equally important for GST. It contributes to the systematization and global acceptance of GST. There is no need to publish a full description for each GST-eligible good when using HSN codes. This enables the tax office to automate GST returns, saving time and money.

We hope the article has given you the relevant information regarding GST Rate for Rice, GST Rate on wheat, Maize HSN Code, Barley HSN Code, and HSN Code for Grains.

Download the Khatabook App for regular updates regarding the HSN Codes and rates.

FAQs

Q: For which commodity is the 1008 HSN Code?

Ans:

The 1008 HSN Code is for Buckwheat Millet and canary seeds, other cereals.

Q: Is the HSN code required for all businesses or not?

Ans:

No,the HSN code is not for all industries. It is required when:

- Any business with an annual turnover of less than 1.5 crore Indian rupees.

- Any GST composition scheme-registered business.

Q: What is the Maize HSN Code?

Ans:

The HSN Code for Maize is 1005.

Q: What is the GST Rate on Wheat?

Ans:

 The GST Rate on Wheat is 5%.

Q: What is the HSN code of Rye?

Ans:

The HSN code of Rye  is 1002

Q: What is the Rice HSN code?

Ans:

The HSN code 1006 is of Rice.

Q: Is an HSN code required when filing a GST return?

Ans:

Yes, because it will be difficult for the company to enter all of the dealer's information. HSN code is an option for businesses that will help them save time. However, when entering the details in the GST Return, firms must choose the HSN code wisely.

Q: Why is it important to follow the HSN code?

Ans:

The HSN code ensures product uniformity and global recognition. Under the GST framework, all businesses subject to the HSN system must obtain an HSN code to be taxed at the proper rate determined by the Indian authorities.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.