written by | November 1, 2022

Know GST Rates & HSN Codes for Cement - Complete Guide

×

Table of Content


India stands as the second-largest producer of Cement in the world. The country has vast areas of quality limestone deposits and is equipped with raw materials, and the cement industry possesses excellent growth potential. The World Customs Organization developed HSN or the Harmonized System of Nomenclature. It is used to classify goods, and its classifications are accepted globally. 

Did you know? India has used the HSN codes since 1986 to separate Customs and Central Excise goods.

How Does HSN Code Work In India?

India has been a member of the World Customs Organization since 1971. To classify goods for customs and central excise, it started using the 6 - digit HSN codes in 1986. Two more digits were added later to the HSN code by Customs and central excise.  

After introducing GST (Goods and Service Tax) in India, HSN has been used under a 3-tiered system and includes the following:

  • Businesses with a turnover of ₹ Rs 1. 5 crores or less need not use the HSN
  • Businesses with a turnover of more than ₹ 1. 5 crores but less than ₹ five crores should use the 2 - digit HSN codes
  • Businesses having a turnover of more than ₹ five crores must use 4 - digit HSN codes
  • Businesses dealing with exports and imports need to use an 8 - digit HSN code
  • HSN codes have 21 sections containing 99 chapters, 1,244 headings and 5,224 sub-headings.
  • Each section number is further divided into chapters. These chapters are divided into headings and then subheadings.
  • The sections and chapters describe the product
  • The headings and sub-headings offer in-depth detail about the product

Also Read: E invoicing - Know What is E invoicing under GST, System, Benefits & More

GST Rates and HSN Code For Cement

The HSN code and the GST rate for Cement are mentioned below: 

HSN Code

Description of product

CESS Percent

Rate Percent

Effective Date

Rate Revision

6810

Articles of cement, of concrete / of artificial stone, whether or not reinforced - tiles, bricks, flagstones and similar articles

0

12 / 18

15/11/2017 1/07/2017

omitted from 28 percent 12 percent 18 percent

681011

Building blocks and bricks

0

12 / 18

15/11/2017 1/07/2017

omitted from 28 percent 12 percent 18 percent

68101110

Articles of cement, of concrete or of artificial stone, whether or not reinforced - tiles, bricks, flagstones, and similar articles: building blocks and bricks: cement bricks

0

12 / 18

15/11/2017 1/07/2017

omitted from 28 percent 12 percent 18 percent

68101190

Articles of cement, of concrete or of artificial stone, whether or not reinforced - tiles, flagstones, bricks and similar articles: building blocks and bricks: other

0

12 / 18

15/11/2017 1/07/2017

omitted from 28 percent 12 percent 18 percent

681019

Other

0

12 / 18

15/11/2017 1/07/2017

omitted from 28 percent 12 percent 18 percent

68101910

Articles of cement, of concrete or of artificial stone, whether or not reinforced - tiles, flagstones, bricks and similar articles: other: cement tiles for mosaic

0

12 / 18

15/11/2017 1/07/2017

omitted from 28 percent 12 percent 18 percent

68101990

Articles of cement, of concrete or of artificial stone, whether or not reinforced - tiles, flagstones, bricks and similar articles: other: other

0

12 / 18

15/11/2017 1/07/2017

omitted from 28 percent 12 percent 18 percent

68109100

Articles of cement, of concrete or of artificial stone, whether or not reinforced other articles: prefabricated structural components for building or civil engineering

0

12 / 18

15/11/2017 1/07/2017

omitted from 28 percent 12 percent 18 percent

681099

Other

0

12 / 18

15/11/2017 1/07/2017

omitted from 28 percent 12 percent 18 percent

68109910

Articles of cement, of concrete or of artificial stone, whether or not reinforced other articles: other: concrete boulder

0

12 / 18

15/11/2017 1/07/2017

omitted from 28 percent 12 percent 18 percent

68109990

Articles of cement, of concrete or of artificial stone, whether or not reinforced other articles: other: other

0

12 / 18

15/11/2017 1/07/2017

omitted from 28 percent 12 percent 18 percent

All HSN Codes For Portland Cement With GST Rates

HSN code of cement is 2523, related aspects of the product are as follows in the provided table

Description of product

HS Code

GST Percentage

White portland cement, whether or not artificially coloured

252321

28 percent

Portland cement (excluding white, whether or not artificially coloured)

252329

28 percent

Cement, whether or not coloured (excluding portland cement and aluminous cement)

252390

28 percent

Ordinary portland cement, dry products include: ultra tech cement, OPC cement

25232910

28 percent

Ordinary portland cement, coloured

25232920

28 percent

Portland pozzolana cement

25232930

28 percent

Portland slag cement

25232940

28 percent

Other portland cement nes

25232990

28 percent

Also Read: All you need to Know About GST Certification Course | Khatabook

Importance of HSN Code under GST

The main purpose of the HSN code is to make the GST process systematic and globally accepted. The HSN code eliminates the requirement of uploading a detailed description of a particular good/ product. This saves time and makes filing easier and hassle-free as GST returns are automated. A service provider must mention an HSN - wise summary of sales in the GSTR – 1 if the turnover is more than ₹ 1. 5 crores. 

Classification Of Goods Under HSN

The Central excise and customs department has been using the HSN system in India since 1986. In India, two more digits were added to the 6 - digit code for better differentiation of the commodities. According to the classification of the code, the first two digits represent the chapter number of a product. The next two digits refer to the heading number. In comparison, the last two digits stand for the product code. 

Requirement of HSN Code in GST

Across the world, HSN codes are globally accepted in more than 200 countries. This high usage is due to the benefits of HSN. 

The benefits of HSN codes are mentioned below:

  • HSN codes furnish a rational basis for Customs tariffs
  • It allows the collection of relevant data on international trade statistics
  • It is a globally accepted uniform classification.

HSN codes are available for each product in all member countries. These codes remain the same for all similar commodities. Although in some countries, the numbers may have variations. 

Advantages of HSN Code in GST

The advantages of the HSN code are mentioned below: 

  • The code provides a uniform system of classifying goods for Customs and Central Excise globally
  • It offers a uniform global taxation system
  • It makes it easier to have international business dealings
  • It is also used in filing returns

Also Read: Who Is an Input Service Distributor in GST? - Definition and Purpose

Conclusion:

The article highlighted the information about the cement HSN code. The HSN code in GST is very helpful for customs agents. It also has an important role in the process of tax collection. It is of great help in making the GST universal. The HSN code in GST has done away with uploading detailed descriptions for goods. 

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: What are the advantages of HSN code?

Ans:

The advantages of the HSN code are mentioned below: 

  • The code provides a uniform system of classifying goods for Customs and Central Excise globally
  • It offers a uniform global taxation system
  • It makes it easier to have international business dealings
  • It is also used in filing returns

Q: What is the classification of the HSN code?

Ans:

According to the classification of the code, the first two digits represent the chapter number of a product. The next two digits refer to the heading number. While the last two digits stand for the product code.

Q: Is the HSN code mandatory in GST invoices?

Ans:

Yes, under GST invoice rules and formats, suppliers need to mention the HSN code of the goods or services supplied with the invoice.

Q: What is the HSN code used for?

Ans:

HSN codes are used to classify goods into various sections, chapters, headings, and sub-headings for convenience.

Q: What is the GST E-bill?

Ans:

The bill issued for the movement of goods in India is referred to as an Electronic way bill or an e-way bill. It needs to be generated on the portal of the E-Way Bill.

Q: What is the HSN code in India?

Ans:

HSN is used to classify goods and its classifications are accepted globally.

Q: Why is HSN needed?

Ans:

Across the world, HSN codes are globally accepted in more than 200 countries. This high usage is due to the benefits of HSN. The codes furnish a rational basis for Customs tariffs. It allows the collection of relevant data on international trade statistics. HSN codes are available for each product in all member countries. These codes remain the same for all similar commodities. Although in some countries the numbers may have variations.

Q: What is the importance of the cement HSN code?

Ans:

The main purpose of the HSN code is to make the GST process systematic and globally accepted. The HSN code eliminates the requirement of uploading a detailed description of a particular product. This saves time and makes filing easier and hassle-free as GST returns are automated.

Q: What is the full form of HSN?

Ans:

HSN stands for Harmonized System of Nomenclature.

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.
×
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.