Sugar HSN Code and GST Rate in India

Explore the HSN code and GST rate for sugar. Learn how sugar HSN codes are determined, its importance, and how to use it in invoices.
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3 min
08 November 2024

HSN stands for Harmonised System of Nomenclature, which is used to ensure uniformity in the classification of goods. The HSN code is a globally recognised system for classifying goods in trade and commerce.

What is the HSN code and GST rate for sugar?

The HSN code for sugar is as follows:

HS Code

Description

GST Rate

1701

Cane or beet sugar and chemically pure sucrose in solid form - raw, without added flavouring or colouring: beet sugar

5%

170112

Cane or beet sugar, chemically pure sucrose in solid form - raw, without added flavouring or colouring: beet sugar

5%

17011200

Cane or beet sugar, chemically pure sucrose in solid form - raw, without added flavouring or colouring: beet sugar

5%

170113

Cane or beet sugar in solid form - raw, without added flavouring or colouring: cane sugar specified under sub-heading 2 - jaggery

0%

17011310

Cane or beet sugar in solid form - raw, without added flavouring or colouring: specified cane sugar under sub-heading 2 - jaggery

0%

17011320

Cane or beet sugar in solid form - raw, without added flavouring or colouring: specified cane sugar under sub-heading 2 - khandsari

5%

17011410

Cane or beet sugar in solid form - raw, without added flavouring or colouring: other cane sugar - cane jaggery

0%

17011490

Cane or beet sugar in solid form - raw, without added flavouring or colouring: other cane sugar - other

5%

17019990

Cane or beet sugar and chemically pure sucrose in solid form - other, including sugar cubes

18%


This code is essential for businesses involved in the manufacturing, processing, or trading of sugar as it simplifies tax-related procedures, especially under the Goods and Services Tax (GST) regime. By using the correct HSN code, businesses can ensure accurate tax calculation and compliance with legal requirements.

How sugar HSN codes are determined?

Sugar HSN codes are determined based on the type of sugar and its processing method. For instance, the HSN code 1701 is used for cane or beet sugar, which includes raw, refined, or unrefined forms. The determination of these codes involves considering the sugar’s purity, whether it is chemically pure sucrose or contains additives, and whether it is in solid or liquid form. The classification also takes into account the end-use of the sugar, such as whether it is for industrial, commercial, or household purposes. The World Customs Organization (WCO) regularly updates the HSN codes to reflect changes in manufacturing processes and product innovations. Understanding how these codes are determined helps businesses categorise their products correctly for taxation and international trade purposes.

Importance of the sugar HSN code

  • Tax compliance: Using the correct sugar HSN code ensures accurate GST calculation, preventing tax disputes.
  • International trade: The HSN code standardises sugar classification globally, facilitating smooth cross-border trade.
  • Inventory management: Businesses can efficiently manage their inventory by categorising sugar under specific HSN codes.
  • Pricing accuracy: Correct HSN coding helps in the precise calculation of prices, including applicable taxes.
  • Legal compliance: It ensures that businesses adhere to local and international regulations regarding product classification.

How to find the sugar HSN code?

  • GST portal: The most reliable source for finding the correct HSN code for sugar is the GST portal, which lists all HSN codes.
  • Product catalogues: Check the product catalogues from suppliers or manufacturers, as they often include the HSN code.
  • Consult with a tax advisor: Tax professionals can provide accurate HSN codes based on the specific type of sugar and its use.
  • Online databases: Various online platforms and government websites offer tools to search for HSN codes based on product descriptions.
  • Industry associations: Trade bodies and industry associations can be valuable resources for confirming the correct HSN code.

How to use HSN codes in invoices?

  • Mandatory inclusion: Always include the correct HSN code on invoices for sugar to ensure compliance with GST regulations.
  • Placement: Place the HSN code in the designated section of the invoice, typically near the product description.
  • GST calculation: Use the HSN code to determine the applicable GST rate, ensuring accurate tax computation on the invoice.
  • Consistency: Ensure that the HSN code used on the invoice matches the code used in all other business documents.
  • Software integration: Use accounting software that automatically populates HSN codes to avoid manual errors.

Conclusion

The HSN code for sugar plays a crucial role in ensuring compliance with tax regulations, facilitating international trade, and simplifying business operations. For Indian businesses, especially those involved in the sugar trade, understanding and correctly using HSN codes on invoices is essential. This not only aids in accurate tax calculation but also supports smooth inventory management and legal compliance.

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Frequently asked questions

What is the HSN code 170410?
The HSN code 170410 is used for categorising "Chewing Gum, whether or not sugar-coated" under the Harmonised System of Nomenclature. This code is important for businesses involved in the production, distribution, or sale of chewing gum, as it ensures proper classification under the GST regime in India. Using this code helps in accurate tax calculation and compliance with Indian tax regulations, facilitating smoother business operations and international trade.

What is the HSN code for a sugar mill?
The HSN code for machinery used in a sugar mill is 8438. This code falls under the broader category of machinery for the industrial preparation or manufacture of food or drink, excluding machinery for the extraction or preparation of fats or oils. Specifically, HSN code 8438 is used for machinery such as crushers, grinders, and mixers employed in sugar mills for processing sugarcane or sugar beet into refined sugar. Accurate usage of this code ensures proper GST compliance.

What is the HSN code 17019990?
The HSN code 17019990 refers to "Other cane or beet sugar and chemically pure sucrose, in solid form." This code is used for sugar products that do not fall under the specific subcategories of cane or beet sugar but are still classified as sucrose in a solid form. It is primarily used for trade and tax purposes under the GST system in India, ensuring accurate classification and tax calculation for such sugar products.

How do I find the correct HSN code for my sugar product?
To find the correct HSN code for your sugar product, visit the GST portal or consult with a tax advisor who can guide you based on your product type and usage. You can also refer to product catalogues from suppliers or use online HSN code search tools available on various government and industry websites. Ensuring accuracy in the HSN code is crucial for compliance with tax regulations and smooth business operations. 

What is the GST for sugar?

In India, the GST rate for sugar, including varieties like brown sugar and items such as artificial honey, is set at 5%. This reduced rate applies to essential sugar products, helping to keep them affordable for consumers. By maintaining competitive pricing, this tax structure also supports the domestic sugar market and encourages export, benefiting both producers and the broader economy.

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