Adhesives & Glues: 3506 HSN Code and GST Rate Details

Introduction

For all manufacturers, vendors, distributors and dealers of Adhesives & Glues, it is essential they fully understand their HSN Code 3506 and GST Rate applicable to the Adhesives and Glues products they sell. Whether you own a small stationary store that sells glue products or you manufacture adshives on a commercial basis, proper GST code classification for your product is critical to both your business conducting proper billing and being in complete compliance with applicable laws.

Utilizing the appropriate GST rate on Adhesives and Glues under HSN Code 3506 improves the accuracy of the monthly GST returns filing process as well as reduces the opportunity to incur a penalty, and have your ITC claims disallowed. By having classification in place, your business will experience fewer operational issues and be protected from the consequences that stem from incorrect tax reporting.

What are Adhesives and Glues

Adhesives can be classified into two general categories based on the bonding agents used to bond materials together; the two classifications for adhesives and glues can be found in Chapter 35 of the GST classification guide.

Different Adhesives Types

Natural adhesives (made from plant or animal sources)
Synthetic adhesives (made from chemical compounds)
Rubber-based adhesives
Resin-based adhesives
Water-based and solvent-based adhesives

HSN Code for Adhesives & Glues

Chapter 35 also includes adhesives prepared or otherwise classified as bond products, adhesives that are designed to bond two surfaces together and adhesives products that have been prepared for joining agents.

HSN Code 3506:

This means that when classified for GST the relevance of the products is not whether they are chemical or physical bond adhesives, but rather their intended use.

What this means:

This code covers ready-to-use adhesives
Includes both industrial and retail products
Applies to small retail packs (under 1-kg) and bulk industrial supplies
Covers adhesives not classified under other specific HSN codes

According to the HSN code 3506, adhesives & glues can be identified as those ready to use (they are prepared beforehand for use) but may be packaged in either small tubes (for home use) or large containers (industrial use) so they may be sold.

Aspect	Details
HSN COde	3506
Product Category	Prepared adhesives and glues
Product Nature	Ready to use adhesives
Coverage Based on	Intended use (not any chemical composition)
Retail Applicability	Small packs (up tp 1 kg) for household or retails use
Industrial applicability	Bulk containers for industrial and commercial use

GST Rate on Adhesives & Glues (HSN 3506)

This code relates to the tax treatment of adhesives & glues products and allows for the application of a standard GST rate to these products throughout India.

GST Rate Understanding

Types of Supply	Tax Component	GST Rate
Intra-State Supply	CGST	9%
	SGST	9%
	Total	18%
Inter-State Supply	IGST	18%
Compensation Cess	–	Not Applicable

The above GST tax treatment applies to all sales of adhesives and glues products nationwide, unless the GST Council changes the GST tax treatment of adhesives and glues products by issuing a new notification. The GST tax treatment for these products has been stable since GST was introduced in the country.

Products Covered Under HSN Code 3506

Any adhesives which are in a state of readiness for use and are offered in market for immediate use qualifies an item under HSN code 3506, irrespective of the chemical composition of the adhesives or the application for which it is required.

Some other category of adhesive and glues:

Wood adhesives used in carpentry and manufacturing
Adhesives used for bonding leather, used in the making of bags and footwear
Adhesives used for bonding metals, used in the construction industry
Retail adhesives, including school adhesives, instant adhesives and craft adhesives

ForAll these products, regardless of their specific chemical composition or intended use, fall under HSN code 3506 as long as they are prepared adhesives ready for application.

Importance of Correct HSN & GST Classification

There are numerous advantages to utilize the accurate HSN code and GST rate in your business. These advantages fall into legal compliance, risk mitigation and operational efficiencies.

Legal Compliance: Accurate HSN Code on your tax invoices ensure that your business’s tax invoices are validly issued and demonstrate professionalism as part of the due diligence process.
Mitigating RISK: Through inaccurate HSN classification, you may receive notices from the GST department an incorrect GST classification resulting in possible penalties equal to 100% of tax amount payable plus interest charges from a timeline of non-payment of taxes.
Operational Efficiency: When you use the correct classification of the HSN code for your business within the GST return filing and HSN code for your annual return and without error.
ITC Proper matching of HSN codes between your purchase and sale will permit you to claim Input Tax Credit without any issues.
Tax Dispute: By ensuring your classification of HSN codes are accurate, you will lower possibilities of dispute arising out of an audit or inquiry conducted by a GST Department representative.

Some Extra Points

FOr Importers:

When importing adhesives, you need to pay

Basic customs duty (as per import policy)
IGST at 18%
Social welfare surcharge if applicable

For Exporters:

Exports are zero-rated under GST. You can export adhesives without paying GST and claim refund of Input Tax Credit on purchase.

Conclusion

All types of adhesives or glue are included in HSN code 3506 and are subject to the standard GST rate in India on a uniform basis. It will be essential that you classify your adhesive products appropriately , whether you are supplying them for industrial or construction use or for sale to customers through a stationary store, to be GST compliant and run your business efficiently.

All adhesives products are subject to 18% GST when sold at retail as either a small glue & adhesives stick to a stationary store or a large glue & adhesives container to a customer. All sales are subject to either CGST + SGST of IGST taxes.

FAQs

What are the adhesives and glues HSN COde?

The adhesives and glues come under HSN code 3506 and also their retail and industrial products

What is the adhesives and glues GST rate to be paid?

18% GST rate is applicable on adhesives and glues of HSN 3506 products in India.

Will all retail and industrial adhesive products around India be charged the same rate of 18%?

Yes, both industrial (large construction adhesive containers) and retail (small glue sticks) will be treated the same for GST purposes and taxed at the same rate of 18%.