Coal HSN Code and GST Rate

Coal hsn code and gst rate table

Gst on coal after the reform

Coal moved from 5% plus a compensation cess to 18% with no cess. For many buyers, the total tax was broadly similar, but the change matters for credit: the 18% GST is creditable for businesses using coal in taxable production, while the old cess could only be used against cess. Factories, brick kilns and boilers should update their purchase records.

Lignite hsn code and briquettes

Lignite, or brown coal, is 2702 at 18%, the same as coal. Briquettes made from coal dust are 2701 20 at 18%. Briquettes made from agricultural waste or sawdust are classified by material, often under 4401 for wood waste briquettes at 5%. Buyers switching between coal and biomass fuel should check the code for each.

Coke hsn code

Coke and semi coke of coal, lignite or peat, whether or not agglomerated, and retort carbon are 2704 at 5%. Foundries and steel plants buy coke for melting. Petroleum coke is a different product under 2713.

Charcoal hsn code

Wood charcoal, including shell or nut charcoal, is nil under 4402. Activated carbon, made from charcoal by further processing, is a chemical product under 3802 at 18%. See wood.

Coal hsn code for small users

Hotels, dhabas, laundries and small factories also buy coal in small lots from local traders. The 18% applies to them too. Dhabas on the 5% no credit restaurant rate get no set off for the coal tax. Laundries charging 18% can. Imported coal attracts IGST at 18% at the port, along with customs duty, and the importer can claim that IGST as credit if it uses the coal in taxable production.

Coal trader's invoice

Coal moves in large truck or rail loads, so the e-way bill and weighbridge slips should match the invoice. Freight is covered on the transport page.

Coal gst rate and credit

A manufacturer using coal to make taxable goods can take credit of the 18% GST. A brick kiln selling bricks at 12% may build up some credit, depending on its other inputs. Power producers selling electricity, which is outside GST, cannot use the credit.