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May 12, 2025

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GST Rates and HSN Code 802 for Other Nuts & Almonds in India

When we hear the word almonds or nuts, our minds naturally drift toward the smell of holiday sweets, healthy snack boxes, or gift hampers of dry fruits. But for the business or trader dealing with dry fruits, these products mean something beyond culinary or sentimental value—they are economically valuable. And in a nation like India, where each product has its position in the GST regime, the subtleties of taxation become important. Of the numerous categories of goods, "Other Nuts & Almonds" under HSN Code 802 are usually neglected in tax conversations. However, this category is a significant contributor to imports, exports, and local trade.

Understanding HSN Code 802: Classification and Importance

The World Customs Organisation (WCO) developed the Harmonised System of Nomenclature (HS) and employs it internationally for systematically classifying goods. India implemented the HSN system under GST to achieve uniformity and simplify the tax process. HSN Code 0802 comprises a set of nuts:

Almonds

Hazelnuts

Walnuts

Chestnuts

Pistachios

Brazil nuts

Cashew nuts (in shell or shelled)

These nuts are generally traded both in shelled and unshelled forms, and the distinction impacts the applicable GST rate. For example, raw and unprocessed nuts may attract a lower rate or even exemption in some cases, while processed or salted nuts attract standard rates.

GST Rates Applicable to HSN Code 802

The GST Council has laid out specific rates depending on the type and form of the nuts:

Type of Nut (HSN 0802)	GST Rate	Description
Almonds (fresh/shelled)	5%	Typically imported/exported in large quantities
Cashew nuts (in shell)	5%	Raw cashew nuts
Cashew nuts (shelled)	12%	Processed cashews for consumption
Other Nuts (Hazelnuts, etc.)	12%	Usually traded in shelled or packed form
Salted/roasted/flavoured nuts	18%	Classified as processed food items

Raw or minimally processed nuts are placed under the 5% or 12% bracket, which keeps essential commodities affordable while maintaining revenue.

Real-World Implications for Traders and Retailers

For businesses, the GST rating has a direct impact on margins, pricing tactics, and filing requirements. For example, a trader selling raw almonds imported at 5% GST is eligible to use the Input Tax Credit (ITC) and the tax cost is lowered overall. But the same almonds become 18% GST if roasted and sold as packaged products, which could reduce sales if clients are sensitive about prices.

Retailers operating specialty shops for dry fruits or websites need to properly classify these items so that proper GST returns are made. Incorrect classification may lead to a penalty or loss of ITC.

Input Tax Credit (ITC) and Its Impact

One of the most beneficial features of GST is the provision of Input Tax Credit. Businesses involved in trading nuts can claim ITC on the GST paid at the time of purchase (either for raw nuts or packaging materials). This becomes even more critical when nuts are processed in-house.

For example, a company buying raw almonds at 5% GST and then roasting them for resale (at 18% GST) can claim ITC on both input and processing costs. This helps in managing the working capital efficiently.

Challenges Faced in the Industry

Rate Confusion: Many small traders are unaware of the exact classification and end up charging incorrect GST rates.

Import Duties: Besides GST, customs duty also applies to imports, making pricing a challenge.

Seasonal Variations: Demand peaks during festivals, but suppliers must plan inventory and taxation all year round.

Storage & Wastage: Nuts are perishable and require proper storage, which adds to cost and indirectly affects tax calculations due to stock valuation.

Compliance and Documentation

Traders must maintain clear documentation for:

Purchase and sales invoices

GST invoices and e-way bills (for transport over prescribed limits)

Import/export documentation (including Bill of Entry)

Proper documentation ensures smooth GST filing and reduces the chances of scrutiny by tax officials.

GST Return Filing for HSN 802 Products

In GSTR-1 and GSTR-3B, businesses must declare the HSN summary depending on their turnover:

Turnover < Rs. 5 crore: HSN code optional

Turnover > Rs. 5 crore: Mandatory to report HSN-wise summary

Regular compliance builds credibility, especially for exporters seeking benefits under the Foreign Trade Policy.

Global Trade and Export Benefits

India is among the largest consumers of dry fruits. The export of almonds and other nuts provides gateway access to Middle East, European, and American markets. Under GST, the provision of zero-rated exports makes it possible for enterprises to export and not pay GST, yet be eligible to recover input tax credit.

This is a big benefit that prompts more companies to engage in global commerce.

Conclusion: Balancing Flavour and Finance

While we may enjoy a handful of almonds for their health benefits or include them in desserts, there’s an entire ecosystem working behind the scenes to ensure these reach our plates. From classification under HSN 802 to careful pricing, tax compliance, and documentation—every nut has its journey.

Understanding the GST implications benefits not only large enterprises but also small traders and D2C brands attempting to make an impact in the health and wellness market. By remaining compliant and educated, companies can concentrate on what truly matters: providing quality products while maximising their tax obligations.

In the ever-evolving GST framework, knowledge isn’t just power—it’s profit.

FAQs

1. Do all types of almonds attract the same GST rate?

Not quite. While raw or shelled almonds typically fall under the 5% GST bracket, things change the moment they’re processed—say roasted, salted, or flavoured. These variations are considered value-added products and attract 12% or even 18% GST, depending on the final form. It’s important to check the classification before invoicing.

2. I’m a small retailer selling mixed dry fruits. Do I need to worry about HSN codes?

If your annual turnover is under ₹5 crore, you’re technically not mandated to mention HSN codes on your invoices. But here’s the thing: using them anyway can help you stay compliant and avoid confusion during audits. Plus, it adds professionalism to your business documents.

3. Can I claim Input Tax Credit (ITC) on packaging materials used for selling nuts?

Absolutely! As long as you’re registered under GST and your input purchases (like jars, pouches, and labels) are from GST-compliant suppliers, you’re eligible to claim ITC. It’s one of those areas where being meticulous can genuinely save you money over time.

4. I import almonds from the US. What should I keep in mind GST-wise?

Imported almonds attract 5% IGST (plus customs duty, if applicable). You’ll need to clear them through a Bill of Entry and ensure all documentation is in place. The good news? The IGST paid during import can be claimed as ITC if you're registered and using it for further business.

5. What if I accidentally charge the wrong GST rate to a customer?

It happens, especially when you're juggling multiple product types. The key is to identify it quickly. You can issue a credit or debit note to adjust the difference. Just make sure it reflects in your GSTR-1 and 3B correctly, and always double-check HSN-based classifications moving forward.

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