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Viraaj Vashishth

January 9, 2025

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Other Oil Cake - HSN Code and GST Rate 2306

This article discusses oil cakes, their importance, their relevance to 2306 HSN code GST rate and the GST rates attached to it, thus providing a useful source of information for the concerned businesses and professionals.

What is OilCake?

Oil cake is a product obtained from oilseeds after the extraction of oil from them. Soybean, sunflower, mustard, groundnut, and cottonseed are the most frequently employed oil cake raw materials. The solid material that remains after the oil has been extracted from these seeds is referred to as oil cake. Proteins, fibers, and other essential nutrients make it very suitable as a feed for animals, more so for cattle, poultry, and other livestock. Oil cake is also applied as a fertilizer because of the good organic components that it has. 2306 HSN code GST rate is important for the farming sector, for animal farmers, and the food chain. After oil extraction, there remains a cake ideal for livestock feeding and soil improving compounds that combines a number of nutrients essential to living organisms.

What Products Are Classified Under HSN 2306 In GST?

Under 2306 HSN code GST rate, GST includes the residues derived from the extraction of vegetable oils that have not been classified elsewhere under GSTR. This ensures coherence in taxation across countries, hence simplifying the process of identifying goods for both businesses and tax authorities. HSN Code 2306 covers solid residues obtained from the extraction of vegetable oil in the form of solid residues, in the form of pellets or otherwise. The table below summarizes the key details:

HSN Code	Description	Examples
2306	Residues from vegetable oil extraction	Cottonseed, Sunflower, Palm Kernel

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You Can Also Read: Cattle Feed HSN Code and GST Rate: A Detailed Guide

2306 HSN Code GST Rate

The GST charged on oil cakes that come under HSN Code 2306 depends on the type of oil cake HSN code and the use of the oil cake. Other Types of oil cakes and their GST rates are:

HSN Code	Description	Rate Revision
2306	Oil-Cake And Other Solid Residues,Whether Or Not Ground Or In The Form Of Pellets, Resulting From The Extraction Of Vegetable Fats Or Oils, Other Than Those Of Heading 2304 Or 2305	5%
230610	Of Cotton Seeds	5%
23061010	Of Cotton Seeds : Oil-Cake And Oil-Cake Meal, Decorticated Expeller Variety	5%
23061020	Of Cotton Seeds : Oil-Cake And Oil-Cake Meal, Decorticated, Solvent Extract	5%
23061030	Of Cotton Seeds : Oil-Cake And Oil-Cake Meal, Undecorticated, Expeller Variety	5%
23061040	Of Cotton Seeds : Oil-Cake And Oil-Cake Meal, Undecorticated, Solvent	5%
23061090	Oil-Cake And Other Solid Residues, Whether Or Not Ground Or In The Form Of Pellets, Resulting From The Extraction Of Vegetable Fats Or Oils, Other Than Thoseof Heading 2304 Or 2305 - Of Cotton Seeds : Other	5%
230620	Of Linseed	5%
23062010	Oil-Cake And Other Solid Residues, Whether Or Not Ground Or In The Form Of Pellets, Resulting From The Extraction Of Vegetable Fats Or Oils, Other Than Thoseof Heading 2304 Or 2305 - Of Linseed : Oil-Cake And Oil-Cake Meal, Expeller Variety	5%
23062020	Of Linseed : Oil-Cake And Oil-Cake Meal, Solvent Extracted (Defatted)	5%
23062090	Other Than Thoseof Heading 2304 Or 2305 - Of Linseed : Other	5%
230630	Oil-Cake And Other Solid Residues, Whether Or Not Ground Or In The Form Of Pellets, Resulting From The Extraction Of Vegetable Fats Or Oils, Other Than Thoseof Heading 2304 Or 2305 - Of Sunflower Seeds	5%
23063010	Of Sunflower Seeds : Oil-Cake And Oil-Cake Meal, Expeller Variety	5%
23063020	Of Sunflower Seeds : Oil-Cake And Oil-Cake Meal, Solvent Extracted (Defatt	5%
23063090	Other Than Thoseof Heading 2304 Or 2305 - Of Sunflower Seeds : Other	5%
23064100	Of Rape Or Colza Seeds : Of Low Erucic Acid Rape Or Colza Seeds	5%
23064900	Of Rape Or Colza Seeds : Other	5%
230650	Of Coconut Or Copra	5%
23065010	Of Coconut Or Copra : Oil-Cake And Oil-Cake Meal, Expeller Variety	5%
23065020	Of Coconut Or Copra : Oil-Cake And Oil-Cake Meal, Solvent Extracted	5%
23065090	Of Coconut Or Copra : Other	5%
23066000	Other Than Thoseof Heading 2304 Or 2305 Of Palm Nuts Or Kernels	5%
23067000	Other Than Thoseof Heading 2304 Or 2305 Of Maize (Corn) Germ	5%
230690	Other	5%
23069011	Other : Oil-Cake And Oil-Cake Meal, Expeller Variety : Of Mowra Seeds	5%
23069012	Other : Oil-Cake And Oil-Cake Meal, Expeller Variety : Of Mustard Seeds	5%
23069013	Other : Oil-Cake And Oil-Cake Meal, Expeller Variety : Of Niger Seeds	5%
23069014	Other : Oil-Cake And Oil-Cake Meal, Expeller Variety : Of Sesame Seeds	5%
23069015	Other : Oil-Cake And Oil-Cake Meal, Expeller Variety : Of Mango Kernel	5%
23069016	Other : Oil-Cake And Oil-Cake Meal, Expeller Variety : Of Sal (De-Oiled)	5%
23069017	Other : Oil-Cake And Oil-Cake Meal, Expeller Variety : Of Castor Seeds	5%
23069018	Other : Oil-Cake And Oil-Cake Meal, Expeller Variety : Of Neem Seeds	5%
23069019	Other : Oil-Cake And Oil-Cake Meal, Expeller Variety : Of Other Seeds	5%
23069021	Other : Oil-Cake And Oil-Cake Meal, Solvent Extracted (Defatted) Variety :	5%
23069022	Other : Oil-Cake And Oil-Cake Meal, Solvent Extracted (Defatted) Variety :	5%
23069023	Other : Oil-Cake And Oil-Cake Meal, Solvent Extracted (Defatted) Variety :	5%
23069024	Other : Oil-Cake And Oil-Cake Meal, Solvent Extracted (Defatted) Variety :	5%
23069025	Oil-Cake And Oil-Cake Meal, Solvent Extracted (Defatted) Variety :	5%
23069026	Oil-Cake And Oil-Cake Meal, Solvent Extracted (Defatted) Variety :	5%
23069027	Oil-Cake And Oil-Cake Meal, Solvent Extracted (Defatted) Variety :	5%
23069028	Oil-Cake And Oil-Cake Meal, Solvent Extracted (Defatted) Variety :	5%
23069029	Oil-Cake And Oil-Cake Meal, Solvent Extracted (Defatted) Variety :	5%
23069030	Other : Residues Babool Seed Extraction	5%
23069090	Other Than Thoseof Heading 2304 Or 2305 - Other : Other	5%

Exemptions and Notifications

1. According to Government Notifications there is no GST chargeable on oil cakes which are used as animal feed.

2. Other uses carry a GST charge of 5 percent.

Compliance Requirements for HSN Code 2306

Parties who are engaged in selling oil cakes are responsible for ensuring that the oil cakes comply with GST regulation. The key requirements include:

1. Correct Classification- Apply the 2306 HSN code correctly to avoid any penalties for misclassification.

2. GST Filing and Documentation- Keep records of invoices that show details of the HSN code together with the GST rate.

3. Input Tax Credit (ITC)- Interested parties can avail of ITC claims on oil cake transactions if the appropriate GST rate has been used and subject to other conditions on qualification.

Common Errors to Avoid

1. Incorrect HSN codes for oil cakes.

2. Not distinguishing between exempt and taxable categories.

You Can Also Read: Fertilisers HSN Code GST Rate - 3101

Conclusion

HSN Code 2306 which stands for ‘Other Oil Cake’ under the GST regime is an important classification of products. It includes all oil cakes which are not other specified types like groundnut cake, soya bean cake, and mustard cake. These oil cakes are of animal consumption, fertilizers as well as other industrial uses. Oil cake businesses have a cut of 5% GST and thus it is important for traders to ensure that their business is tax compliant by classifying their products correctly under this code.

Understanding and knowing the input oil cake and output oil cake business along with HSN code 2306 and its GST rate of 5% is critical for players in the oil cake trading and oil cake production sector. To ensure that the businesses do not encounter legal issues and are able to fulfill their tax obligations, this should be compliant with all of the above regulations.

FAQs

1. What is HSN code 2306 under GST?

HSN code 2306 works under the GST regulations and it is used for “Other Oil Cake”, which is a broad description for oil cakes that is not further divided into categories such as groundnut cake or mustard cake.

2. What is the GST rate for oil cake HSN Code 2306?

The GST rate for oil cake under HSN Code 2306 is 5%.

3. What do you mean by oil cake?

Oil cake is agricultural waste that remains after oil is extracted from oil crops such as soybeans, sunflowers, and groundnuts. The product is mainly used as an animal feed and fertilizer.

4. Does ‘Other Oil Cake’ include all oil cakes under HSN code 2306?

Check whether or not another oil cake is defined under a more appropriate heading because HSN code 2306 is exclusively reserved for “Other Oil Cake”.

5. What is the GST on oil cakes?

In India, oil cakes including those classified under HSN code 2306 are levied a 5% GST.

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