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Published on:

June 2, 2025

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GST Rates and HSN Code 2522 for Quicklime, Slaked Lime, and Hydraulic Lime: A Detailed Guide

The importance of understanding tax intricacies has increased manifold in the fast-changing and highly competitive environment of modern commerce. For companies dealing with staple commodities such as quicklime, slaked lime, and hydraulic lime, comprehending the Harmonized System of Nomenclature (HSN) Code 2522 and the relevant Goods and Services Tax (GST) rates is not just a matter of legality—it is also a strategic decision. These materials, which are indispensable for most of the industries that involve construction and agriculture to the most complicated ones like chemical manufacturing, need to be understood clearly for the tax implications. This comprehensive guide is aimed at clarifying the complicated tax structures, offering companies the knowledge that would help them to be fully compliant, enjoy tax reduced tax rates, and optimize their costs.

Navigation of GST Compliance in Lime Industry

While the ground is laid with the basics of HSN codes and GST rates, the Lime industry, due to the way in practice compliance is managed, must go one step further. The inherent features of the lime plant, together with the complexities of the GST system, bring forth difficulties that are unique. Among the essential things is the correct determination of the "place of supply," which is the main factor in distinguishing between the applicable tax jurisdiction. Customs brokers are authorized to release the cargo by the carriers in an area in which the receiver also has an office. However, the specific point where the delivery is received is unclear, which is especially the case when it comes to bulk orders and long-distance deliveries. This is particularly true in inter-state transactions, where the distinction between IGST and CGST/SGST rests on the place of supply. Companies need to be in a position to maintain chronologically, the records starting with the dispatch of goods, through transit, up until delivery to correctly place of supply and avoid potential litigation with the tax authorities.

Besides, the lime industry transactions very often involve different stakeholders, that is small contractors, agricultural cooperatives, and large industrial clients. This is why a solid system for generating and managing GST-compliant invoices is a must. Invoices need to contain all the compulsory details- HSN code, GST rate, taxable value, and GST amount- and be issued within the specified time limits. For the smaller businesses, keeping a good record of transactions and creating invoices compliant with the tax regime can present difficulties, and a good solution is using accounting software or obtaining the help of a professional. The complexities of the input tax credit (ITC) management introduce another layer of complexity. Enterprises must be sure that ITC claimed is backed by genuine invoices and that goods or services procured are actually used for business purposes. This involves the setting up of a meticulous system to reconcile purchase invoices with sales invoices and ensuring that the ITC claimed matches the GST returns filed.

Then, one more of the challenges facing the lime industry is that some lime uses are seasonal, particularly the agricultural sector. In the peak seasons of the agriculture, the need for slaked lime tends to rise, causing a heightened transport and movement of cargoes. As a result, the compliance systems that the business already has might be overstrained, so it is very important for the businesses to have the scalable processes in place. On top of that, lime products are also bulky- this means they need a special sort of storage and handling facilities. Companies should ensure that these installations comply with environmental and safety requirements nonetheless, which increases the whole compliance burden. Lime's transportation, on the other hand, needs to be done with a clear consideration that it can react with the moisture around it. To avoid a situation in which the trucks are either impaired or weakened due to exposure to water or humidity, the organizational bodies have to come up with a design that assures perfect sealing and the protection of the vehicles. Apart from getting rid of major issues common in short-distance car transmission, efficient cargo movements over long distances are to be achieved only by good scheduling and management, according to Premier Truck Driving Schools.

Moreover, it is essential that the companies keep themselves batched up with the announcements and ads by the GST Council. GST is a living system and fluctuations in the rates, principles or approaches may result in the compliance obligations to change. Regular updates through official channels and professional guidance are vital to ensure compliance with the latest rules. Lastly, the way to compliance is to make compliance an integral part of company culture. Educating the employees on GST procedures, keeping clear lines of communication, and conducting regular internal audits are some of the actions that can help with the mistake or omission risk. Besides dealing with practical problems, businesses in lime can flawlessly replace the GST compliance system by ensuring that the operations go smoothly and stay away from the possible penalties.

Quicklime, Slaked Lime, and Hydraulic Lime How are they Different?

These lime products are the essence of the main characteristics and uses of each and become the basic tools of successful taxation, one must previously familiarize himself/herself with them:

Quicklime (Calcium Oxide - CaO):

The quicklime, which occurs when limestone is heated and the process of decomposition occurs, is possibly the limestone being subjected to high temperatures to release carbon dioxide.

Being a highly reactive substance, quicklime is a desiccant of high purity and is also an element that is an indispensable part in the multi-facet of various industrial processes.

Diverse use can be provided by its application in the iron and steel industry for the desulfurization step; in the cement industry, which it is a major component, and in the chemical industry, where it is mainly used in the chemical synthesis process.

This chemical reaction is a reaction of a powdery substance which has alkaline properties so strong that even a person can be injured by its pH.

Another point of the lime produced in the limewashing process known as slaked lime is its ability to be used as a disinfectant and a protectant. Besides this application slaked lime appears also in the water treatment process where it is used to adjust pH and to purify water, also repairing soil in agriculture and adjusting pH in the soil.

Hydraulic Lime:

Hydraulic lime is this type of lime produced especially, and it has a special possibility to dry hard when water is mixed with it even in the absence of air.

The property of hydraulicity is due to the impurities in the limestone such as silica and alumina.

Furthermore, it is mainly employed in the construction industry for making durable mortars and plasters that are used in restoration projects mainly because traditional materials are usually used.

HSN Code and GST Rates for Lime Products

It is worth noting that these lime products are classified and taxed under the HSN Code system.

HSN Code 2522:

All these types of lime products that include calcium oxide, calcium hydroxide, and hydraulic lime fall under the HSN code 2522.

One coding system for all the products of lime shall streamline the taxation process and ensure uniformity across different kinds of lime.

GST Rate:

Filling in on the tax raises, note rates of IGST at 5% are applied for all the products under the HSN Code 2522 type.

Similarly, this rate is applied uniformly across all states and the list of states and also on the undisputed transactions within states.

IGST (Integrated Goods and Services Tax):

Thus, in cases of inter-state goods displacement, IGST is the only tax that is collected and it is 5%.

CG:

Work in the same state: As a result of work which is done in the same state, 2.5% CGST and 2.5% SGST sales will be collected, then sum it up to make it 5%.

Uses and GST Applicability Across Industries

The versatility of lime products leads to their extensive use in numerous sectors:

Construction Industry:

Lime is the principal constituent of cement, plaster and concrete and thus the quality and the durability of those materials are improved.

Hydraulic lime which is important in historical preservation mainly because of its compliance with traditional building materials is often a preferred material.

Agriculture:

The slaked lime is too much used and useful to the media, which is helpful to get rid of the acidy and then increasing the amount of organic materials for the environmental pollution problem, which is thus, promoting the plant.

It is the main reason why crops grow healthily.

Water Treatment:

the removal of contaminated substances from the water and pH adjustments are accomplished by the application of lime in water purification systems.

Steel Manufacturing:

It is mostly the reason why Steel-making remains the same even when the quality of steel has been improved, such as the cropping of the steel, the removal of all kinds of unwanted components such as sulfur and others through Quicklime.

This 5% GST rate is uniform across all such uses, thus making the tax system less discriminatory.

Input Tax Credit (ITC) on Lime Products

One of the GST highlights is the introduction of Input Tax Credit:

The process goes as follows. Companies are eligible for ITC and to get it, they have to pay GST for lime products if the products are used as inputs in the manufacturing process or for other business operations.

This, in turn, be a credit that is used to offset the GST payable on the final product which ends up in the reduction of the entire tax burden.

One important point to note in regard to ITC is that ITC can not be availed of in case the final product is exempted from GST.

Compliance and Documentation

Adhering to GST regulations requires meticulous record-keeping and documentation:

Proper GST Invoicing:

Invoice must include the HSN Code (2522) and the GST applicable rate (5%) in order to charge it.

This both transparency and ensures accurate tax reporting are the most benefices from this kind of documentation.

E-way Bill Requirement:

Different states must validate the movement of lime products above ₹50,000 using an e-way bill, thus eliminating the chance of tax evasion.

Herein, a digital copy is issued to physically check, if goods comply with tax regulations.

Reverse Charge Mechanism (RCM):

But, if a buyer buys from an unregistered dealer, the recipient is the one who is responsible for GST payments through RCM.

In general, RCM is an effective tool for the government to secure taxes even if dealing with unregistered individuals or businesses.

Challenges in GST Compliance for the Lime Industry

GST compliance in the lime industry has certain issues:

Correct Classification:

The exact application of HSN Code 2522 for GST filings can actually be problematic, in view of various forms and applications of lime.

Transportation Issues:

Lime is a bulky product that requires special transportation and handling and, consequently, this activity can be challenging for logistics.

Due to this, the e-way bill sometimes becomes a conflicting issue on how it is managed and taxes are paid.

ITC Claim Management:

Firms have to keep trustworthy so-called "well-ordered" records in order to prove the backed ITC claims which are aligned with GST norms. This can be a complicated task.

Conclusion

Quicklime, slaked lime, and hydraulic lime are crucial materials in which different industries might use in a wide variety of applications. HSN Code and the applicable GST Rate (5%) are some of the most important things to take note of by businesses for them to be compliant with and even benefit from the tax system and manage the costs properly. Through effective implementation of GST and the use of ITC facilities, enterprises can guarantee convenient operations that favor the whole and succeed in the economy.