HSN Code and GST Rate for Sugar
Suppose you’re a business owner involved in manufacturing or trading sugar and sugar confectionery products in India. In that case, it’s crucial to understand the applicable GST rates and HSN codes for your goods. In this article, we’ll dive into the details of the GST rates and HSN codes for sugars and sugar confectionery products under Chapter 17 of the GST Classification.
Chapter 17 of the GST Classification specifically relates to sugar and sugar confectionery products. This chapter encompasses a wide range of products made from sugar, molasses, and other sweeteners. It also includes items like candies, toffees, chewing gums, and similar confectionery products.
When it comes to GST rates for sugars and sugar confectionery products, they are uniformly set at 18%. This 18% rate applies to all products falling within Chapter 17 of the GST Classification.
For the purpose of taxation, the Harmonized System of Nomenclature (HSN) Code is used to classify goods and products. The HSN code for sugars and sugar confectionery products is 1704. This code is applicable to all products falling under Chapter 17 of the GST Classification.
Here’s a list of some common sugar and sugar confectionery products and their respective HSN codes:
- Sugar: HSN Code 1701
- Cane Sugar: HSN Code 1701
- Beet Sugar: HSN Code 1701
- Molasses: HSN Code 1703
- Candies: HSN Code 1704
- Toffees: HSN Code 1704
- Chewing Gums: HSN Code 1704
- Confectionery Products: HSN Code 1704
Understanding these GST rates and HSN codes is essential for those involved in the sugar and confectionery industry in India.
GST Rates for Sugars and Sugar Confectionery
The GST rate for sugars and sugar confectionery products is set at a uniform 18%. This rate applies to all products falling under Chapter 17 of the GST Classification.
Understanding HSN Codes
The Harmonized System of Nomenclature (HSN) Code is used to classify goods and products for taxation purposes. In the context of Chapter 17 of the HSN code, “raw sugar” refers to sugar with a sucrose content of less than 99.5 degrees as measured by a polarimeter. Additionally, subheading 1701 13 pertains to cane sugar with a sucrose content ranging from 69° to less than 93°. This sugar contains natural anhedral microcrystals, not visible to the naked eye, surrounded by molasses residues and other sugar cane constituents.
Chapter 17 Exclusions
Chapter 17 of the HSN code does not cover:
- Sugar confectionery containing cocoa (heading 1806).
- Chemically pure sugars (other than sucrose, lactose, maltose, glucose, and fructose) or other products of heading 2940.
- Medicaments or other products of Chapter 30.
HSN Codes and GST Rates for Specific Products
- Sugar: HSN Code 1701, GST Rate 18%
- Cane Sugar: HSN Code 1701, GST Rate 18%
- Beet Sugar: HSN Code 1701, GST Rate 18%
- Molasses: HSN Code 1703, GST Rate 18%
- Candies: HSN Code 1704, GST Rate 18%
- Toffees: HSN Code 1704, GST Rate 18%
- Chewing Gums: HSN Code 1704, GST Rate 18%
- Confectionery Products: HSN Code 1704, GST Rate 18%
Import Policy for Sugar, Chocolates, and Sugar Confectioneries
Import of milk and milk products, including chocolates, chocolate products, candies, confectionery, and food preparations containing milk or milk solids as an ingredient from China, is prohibited until further orders.
Understanding these GST rates and HSN codes is vital for businesses dealing with sugar and confectionery products in India.
| HSN Code | HSN Code Description | Import Policy | Policy Conditions | GST Rate in Percentage |
|---|---|---|---|---|
| 1701 | CANE OR BEET SUGAR AND CHEMICALLY PURE SUCROSE IN SOLID FORM | All sugar import contracts shall be compulsorily registered with the Agricultural and Processed Food Products Export Development Authority (APEDA). | ||
| Raw sugar does not contain added flavouring or colouring matter. | ||||
| 1701 12 00 | Beet sugar | Free | 5 | |
| 1701 13 | Cane sugar specified in Subheading Note 2 to this Chapter | |||
| 1701 13 10 | Cane jaggery | Free | 0 | |
| 1701 13 20 | Khandsari sugar | Free | 5 | |
| 1701 13 90 | Other | Free | 5 | |
| 1701 14 | Other cane sugar | |||
| 1701 14 10 | Cane jaggery | Free | 0 | |
| 1701 14 20 | Khandsari sugar | Free | 5 | |
| 1701 14 90 | Other | Free | 5 | |
| 1701 91 00 | Refined sugar containing added flavouring or coloring matter | Free | 18 | |
| 1701 99 | Other | |||
| 1701 99 10 | Sugar cubes | Free | 18 | |
| 1701 99 90 | Other | Free | 18 | |
| 1702 | OTHER SUGARS, INCLUDING CHEMICALLY PURE LACTOSE, MALTOSE, GLUCOSE AND FRUCTOSE, IN SOLID FORM; SUGAR SYRUPS NOT CONTAINING ADDED FLAVORING OR COLORING MATTER, ARTIFICIAL HONEY, WHETHER OR NOT MIXED WITH NATURAL HONEY; CARAMEL | |||
| Lactose and lactose syrup | ||||
| 1702 11 | Containing by weight 99% or more lactose expressed as anhydrous lactose, calculated on the dry matter | |||
| 1702 11 11 | In solid form | Free | 18 | |
| 1702 11 90 | Other | Free | 18 | |
| 1702 19 | Other | |||
| 1702 19 10 | In solid form | Free | 18 | |
| 1702 19 90 | Other | Free | 18 | |
| 1702 20 | Maple sugar and maple syrup | |||
| 1702 20 10 | In solid form | Free | 18 | |
| 1702 20 90 | Other | Free | 18 | |
| 1702 30 | Glucose and glucose syrup, not containing fructose or containing in the dry state less than 20% by weight of fructose. | |||
| 1702 30 10 | Glucose, liquid | Free | 18 | |
| 1702 30 20 | Glucose, solid | Free | 18 | |
| 1702 30 31 | Dextrose: In solid form | Free | 18 | |
| 1702 30 39 | Other | Free | 18 | |
| 1702 40 | Glucose and glucose syrup, containing in the dry state at least 20% but less than 50% by weight of fructose, excluding inverted sugar | |||
| 1702 40 10 | Glucose, liquid | Free | 18 | |
| 1702 40 20 | Glucose, solid | Free | 18 | |
| 1702 40 31 | Dextrose: In solid form | Free | 18 | |
| 1702 40 39 | Other | Free | 18 | |
| 1702 50 00 | Chemically pure fructose | Free | 18 | |
| 1702 60 | Other fructose and fructose syrup, containing in the dry state more than 50% by weight of fructose, excluding inverted sugar | |||
| 1702 60 10 | In solid form | Free | 18 | |
| 1702 60 90 | Other | Free | 18 | |
| 1702 90 | Other, including inverted sugar and other sugar and sugar syrup blends containing the dry state 50% weight of fructose | |||
| 1702 90 10 | Palmyra sugar | Free | 5 | |
| 1702 90 20 | Chemically pure maltose | Free | 18 | |
| 1702 90 30 | Artificial honey, whether or not mixed with natural honey | Free | 18 | |
| 1702 90 40 | Caramel | Free | 18 | |
| 1702 90 50 | Insulin syrup | Free | 18 | |
| 1702 90 90 | Other | Free | 18 | |
| 1703 | MOLASSES RESULTING FROM THE EXTRACTION OR REFINING OF SUGAR | |||
| 1703 10 00 | Cane molasses | Free | 28 | |
| 1703 90 | Other | |||
| 1703 90 10 | Molasses, edible | Free | 28 | |
| 1703 90 90 | Other | Free | 28 | |
| 1704 | SUGAR CONFECTIONERY (INCLUDING WHITE CHOCOLATE), NOT CONTAINING COCOA | |||
| 1704 10 00 | Chewing gum, whether or not sugar-coated | Free | 28 | |
| 1704 90 | Other | |||
| 1704 90 10 | Jelly confectionery | Free | 18 | |
| 1704 90 20 | Boiled sweets, whether or not filled | Free | 18 | |
| 1704 90 30 | Toffees, caramels and similar sweets | Free | 18 | |
| 1704 90 90 | Other | Free | 18 |
What is the HSN Code for Sugar?
The HSN code for sugar is 1701. This code is used to identify sugar and sugar confectionery products in international trade. The code is part of the larger HSN system, which is used by more than 200 countries to classify goods for customs and trade purposes. The HSN code for sugar is used to differentiate between different types of sugar, such as raw sugar, refined sugar, and brown sugar.
How Does the HSN Code for Sugar Work?
The HSN code for sugar is a six-digit code that is used to classify sugar products. The first two digits, 17, refer to the chapter on sugar and sugar confectionery products. The third and fourth digits, 01, refer to the heading on sugar. The last two digits, 00, refer to the subheading on sugar.
Different Types of Sugar and Their HSN Codes
There are different types of sugar, and each has its own HSN code. Here are some examples:
- Raw sugar: HSN code 1701 11
- Refined sugar: HSN code 1701 99
- Brown sugar: HSN code 1701 14
- Sugar confectionery: HSN code 1704
It is essential to use the correct HSN code for the type of sugar being imported or exported. The HSN code determines the rate of duty that must be paid on the sugar and sugar confectionery products.
Importance of Using the Correct HSN Code for Sugar
Using the correct HSN code for sugar is crucial for importers and exporters. Incorrect classification can result in penalties, customs seizures, or even legal action. Moreover, using the correct HSN code ensures that the correct amount of customs duty is applied to the sugar product. For instance, raw sugar has a different duty rate compared to refined sugar, and using the incorrect code could result in an underpayment or overpayment of duties.
The HSN code for sugar also provides valuable data for trade statistics. The HSN code is used by customs officials to collect and analyze data on sugar and sugar confectionery products. This data is essential for policymakers, traders, and other stakeholders in the sugar industry to understand the trends in the sugar trade, identify emerging markets, and develop strategies for growth.
Benefits of the HSN Code System
The HSN code system has several benefits for international trade, including:
- Standardization: The HSN code system provides a standardized system for classifying goods. This ensures that all countries use the same classification system, reducing confusion and errors.
- Simplification: The HSN code system simplifies the process of classifying goods for customs purposes. By using a single code, customs officials can quickly identify the type of goods being imported or exported.
- Accuracy: The HSN code system provides a high level of accuracy in classifying goods. This reduces the risk of misclassification, which can lead to errors in duty calculation or even legal action.
Conclusion
The HSN code for sugar is a critical tool for importers and exporters. By using the correct HSN code, businesses can ensure compliance with regulations, avoid penalties, and accurately calculate customs duties. The HSN code system provides a standardized and simplified approach to classifying goods, which improves accuracy and reduces the risk of errors in international trade. It is crucial for businesses in the sugar industry to understand the HSN code for sugar and use it correctly to ensure a smooth and efficient trade process.
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FAQ
1. What is an HSN code?
An HSN code is a standardized system of classification for goods traded internationally. It is used to identify the type and quantity of goods being imported or exported.
2. Why is the HSN code important for sugar?
The HSN code for sugar is essential for identifying and differentiating between different types of sugar, such as raw sugar, refined sugar, and brown sugar. It is also used to determine the rate of duty that must be paid on sugar products.
3. What is the HSN code for sugar?
The HSN code for sugar is 1701. This code is used to classify sugar and sugar confectionery products in international trade.
4. What is the difference between raw sugar and refined sugar?
Raw sugar is sugar that has not been processed and contains impurities such as molasses. Refined sugar is processed to remove impurities, resulting in a purer product.
5. How does the HSN code for sugar work?
The HSN code for sugar is a six-digit code that is used to classify sugar products. The first two digits, 17, refer to the chapter on sugar and sugar confectionery products. The last four digits refer to the specific type of sugar product.
6. What happens if the wrong HSN code is used for sugar products?
Using the wrong HSN code can result in penalties, customs seizures, or even legal action. Moreover, using the incorrect code could result in an underpayment or overpayment of duties.
7. Do all countries use the same HSN codes for sugar?
Yes, more than 200 countries use the same HSN code system for classifying goods, including sugar and sugar confectionery products.
8. What is the benefit of using the HSN code system for sugar?
Using the HSN code system provides a standardized and simplified approach to classifying goods. This improves accuracy, reduces the risk of misclassification, and provides valuable data for trade statistics.
9. How can I find the correct HSN code for my sugar product?
You can consult with customs officials or refer to the Harmonized System Nomenclature (HSN) book, which provides a comprehensive list of HSN codes for different types of goods.
8. Is it possible to change the HSN code for sugar products?
It is possible to request a change in the HSN code for sugar products, but this must be done through the appropriate channels and with the approval of customs officials.
