Wood Charcoal - GST Rates & HSN Code 4402

Wood charcoal is a commonly used natural fuel that is produced by heating wood in the absence of air. It is widely used in industries such as metallurgy, chemicals, and agriculture. In India, wood charcoal is classified under the Harmonized System of Nomenclature (HSN) code 4402. This article will discuss the GST rates and HSN code for wood charcoal in India.

GST Rates for Wood Charcoal

The GST rates for wood charcoal in India vary depending on the type of wood used and the final product. Here are the GST rates for different types of wood charcoal:

Charcoal (including shell or nut charcoal), whether or not agglomerated:

HSN CodeDescriptionRate (%)4402 10 10Hardwood charcoal54402 90 10Charcoal other than hardwood charcoal54402 90 90Other18

HSN Code for Wood Charcoal

As mentioned earlier, wood charcoal is classified under the HSN code 4402 in India. The HSN code is a globally recognized classification system that is used to identify goods for taxation purposes. The HSN code for wood charcoal is further divided into subheadings based on the type of wood used and the final product.

Subheadings under HSN Code 4402 for Wood Charcoal:

4402.10 – Charcoal (including shell or nut charcoal), whether or not agglomerated:

This subheading includes:

1. Charcoal obtained from hardwood

2. Charcoal obtained from softwood

4402.90 – Wood charcoal (including shell or nut charcoal), whether or not agglomerated:

This subheading includes:

1. Charcoal other than hardwood charcoal

2. Other forms of wood charcoal

Conclusion

Wood charcoal is an important natural fuel used in various industries in India. As per the GST rates and HSN code, hardwood charcoal attracts a GST rate of 5%, while other types of charcoal attract a GST of 18%. It is crucial for business owners to be aware of the applicable GST rates and HSN code for wood charcoal to avoid any confusion during taxation.