February 25, 2023

Natural Graphite - GST Rates and HSN Code 2504

If you are a small or medium business owner or a startup founder in India, you must be aware of the Goods and Services Tax (GST) and the Harmonized System of Nomenclature (HSN) code that classifies goods for taxation purposes. In this article, we will be discussing the GST rates and HSN code for natural graphite, which is an important mineral used in many industries.

What is Natural Graphite?

Natural graphite is a naturally occurring mineral made up of carbon atoms. It is used in various industrial applications due to its unique properties. Graphite is a good conductor of electricity, has high thermal stability, is chemically inert, and has a high melting point. It is used in the production of refractories, lubricants, batteries, and many other products.

GST Rates for Natural Graphite

The GST rates for natural graphite are as follows:

  • 5% for unworked or simply sawn or roughly shaped natural graphite
  • 18% for other natural graphite

As you can see, the GST rate for natural graphite depends on the level of processing it has undergone. Unworked or simply sawn or roughly shaped natural graphite attracts a lower GST rate of 5%, while other natural graphite that has undergone further processing, such as grinding, milling or micronizing, attracts a higher GST rate of 18%.

HSN Code for Natural Graphite

The HSN code for natural graphite is 2504. This code is used to classify natural graphite for taxation purposes. It is important for businesses to correctly classify the goods they are dealing with under the appropriate HSN code to ensure that they are paying the correct GST rate.


In conclusion, if you are a business owner or startup founder dealing with natural graphite, it is important to be aware of the GST rates and HSN code for this mineral. By correctly classifying your goods and paying the appropriate GST rate, you can avoid penalties and ensure compliance with the law.


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