February 25, 2023

GST Rates and HSN Code for Quaternary Ammonium Salts, Hydroxides

Quaternary Ammonium Salts are a group of organic compounds that contain a positively charged nitrogen atom and four long hydrocarbon chains. They are commonly used as disinfectants, surfactants, and fabric softeners. Under the GST regime, Quaternary Ammonium Salts fall under Chapter 29 and are classified under HSN code 2923. Quaternary Ammonium Salts are taxable under GST at a rate of 18%. This means that businesses that deal in Quaternary Ammonium Salts must charge this tax on their sales and remit it to the government.

However, there are some exceptions to this rule. If the Quaternary Ammonium Salts are used for agricultural purposes, they are taxed at a lower rate of 5%. Similarly, if they are used for medicinal purposes, they are exempt from GST. It's important for businesses to correctly classify the Quaternary Ammonium Salts they deal with and charge the appropriate GST rate. Failure to do so can result in penalties and fines from the government.

In addition to the GST rate, businesses must also be aware of the HSN code for Quaternary Ammonium Salts. HSN stands for Harmonized System of Nomenclature and is an internationally recognized system of classifying goods. The HSN code for Quaternary Ammonium Salts is 2923.


In conclusion, Quaternary Ammonium Salts are an important group of chemicals that have a wide range of uses. As a business owner dealing with these compounds, it's important to understand the GST rates and HSN code for Quaternary Ammonium Salts. By correctly classifying and taxing these products, businesses can ensure compliance with government regulations and avoid penalties and fines.


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