GST rates and HSN code 0801 for Coconuts, Brazil Nuts, Cashew Nuts

The classification of goods is important for ascertaining the rate of Indian Goods and Services Tax (GST) applicable to the supply of goods. The Harmonized System of Nomenclature (HSN) provides a standardized system for this. Details about the code and specific requirements are classified under HSN Code 0801, which covers certain nuts like Coconuts, Brazil Nuts, and Cashew Nuts. In this article, we will be going into detail about the HSN Code 0801, the various subsections under it, and the GST rates applicable to these nuts.

Breakdown of HSN Code 0801

HSN Code 0801 encompasses the following categories:

HSN Code	Description	Rate (%)	Effective Date	Rate Revision
801	Coconuts, Brazil Nuts, and Cashew Nuts, Fresh or Dried, Whether or Not Shelled or Peeled - Coconuts	5/12	01/07/2017	5%, 12%
801	Coconuts, Brazil Nuts, and Cashew Nuts, Fresh or Dried, Whether or Not Shelled or Peeled - Coconuts	0	01/07/2017	0%
8011100	Desiccated Coconuts	5/12	01/07/2017	5%, 12%
8011210	Coconuts in the Inner Shell (Fresh)	5/12	01/07/2017	5%, 12%
8011220	Coconuts in the Inner Shell (Dried)	5/12	01/07/2017	5%, 12%
8011290	Coconuts in the Inner Shell (Other)	5/12	01/07/2017	5%, 12%
8011910	Other Coconuts (Fresh)	5/12	01/07/2017	5%, 12%
8011920	Other Coconuts (Dried)	5/12	01/07/2017	5%, 12%
8011990	Other Coconuts (Other)	5/12	01/07/2017	5%, 12%
8012100	Brazil Nuts (In Shell)	5/12	01/07/2017	5%, 12%
8012200	Brazil Nuts (Shelled)	5/12	01/07/2017	5%, 12%
8013210	Cashew Kernels (Broken)	5/12	01/07/2017	5%, 12%
8013220	Cashew Kernels (Whole)	5/12	01/07/2017	5%, 12%
8013290	Cashew Kernels (Other)	5/12	01/07/2017	5%, 12%

GST Rates for Products Under HSN Code 0801

The GST rates on goods covered under HSN Code 0801 are:

Coconuts:

Fresh or dried, whether or not shelled or peeled — Exempt from GST (NIL rate).
Desiccated coconuts: 5% GST.

Brazil Nuts:

Fresh, shelled, or peeled: zero-rated.
Dried whether or not shelled or peeled: 12% GST.

Cashew Nuts:

Both shelled or peeled: 5% GST applicable.

Practical Example of HSN Code 0801

For businesses operating in dried coconut powder, the GST Rate is applicable under 0801 (5%) making it different from fresh coconut trading. Penalties can be avoided by correctly classifying those transactions, which is important.

Dried Brazil nut exporters are liable for 12% GST as per the applicable law. They may claim an input tax credit for GST paid on procurement to optimise costs.

GST returns filing due dates, Return filing types, and identifier appendix have all been converted into a centralized document format.

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Importance of Accurate HSN Classification

Correct classification using an HSN Code is important for people to stay compliant in terms of GST. Misclassifying workers can result in errors in tax filings, liability for penalties, and disruption of work in law enforcement.

For example, desiccated coconuts, and fresh coconuts are included in HSN Code 0801 but have separate rates of GST, 5%, and NIL respectively. As a result, businesses need to be very careful in how they classify their products to be able to apply the proper GST rates.

In the 45th meeting of the GST Council, the distinction between fresh nuts and dried nuts under HSN Code 0801 was clarified. Fresh nuts (the natural state of which may be chilled) are exempt from GST. As opposed to this, dried nuts, deliberately processed into dry form, are subject to GST rates of 5% or 12%, as the case may be.

The edible products of coconuts are classified under HSN Code 0801 and fall into the following GST rates. For fresh or dried coconuts GST is exempted. For desiccated coconuts, GST is charged at 5%. Fresh Brazil nuts are GST-free, but dried ones attract a 12 per cent rate. The GST is levied at 5% for cashew nuts, shelled or peeled.

Conclusion

Businesses involved in the trade of coconuts, Brazil nuts and cashew nuts must be abreast of the intricacies of HSN Code 0801 and the associated GST rates. Accurate classification is critical for compliance with tax regulations and to mitigate potential legal issues. Businesses should always stay updated with any changes in GST rates and HSN classifications to ensure smooth operations, as well as adherence to laws and regulations.

You can also easily calculate your GST with Swipe’s Easy GST Calculator

What is HSN Code 0801?

HSN Code 0801 covers coconuts, Brazil nuts, and cashew nuts, fresh or dried, shelled or unshelled. This classifies them with the GST rates that can be applied to these products.

What is the GST rate for desiccated coconuts under HSN Code 0801?

GST on desiccated Coconuts bearing HSN Code 0801 is 5%. This rate applies to dried and shredded coconuts, used for cooking.

Are fresh coconuts taxable under GST?

Fresh coconuts, whether shelled or peeled or not shelled or peeled, are not subject to GST under HSN Code 0801. Therefore, it promotes the consumption as well as the sale of and trade in fresh coconuts.

What is the GST rate for cashew nuts under HSN Code 0801?

Cashew nuts, whether shelled or peeled, have a GST rate of 5% in HSN Code 0801. This is the standard cash nut tax rate in the market.

Do dried Brazil nuts attract GST?

Yes, shelled or unshelled dry Brazil nuts come under HSN Code 0801 and attract a 12% GST rate. This conversion rate is for dried Brazil nuts found on the market.

Are GST exemptions available for small-scale traders of these nuts?

Yes, small businesses whose annual turnover is below the GST threshold limit (e.g. ₹40 lakh in the case of goods) are eligible for exemptions.

Do processed or value-added products of these nuts attract different GST rates?

Yes, value-added products such as roasted cashews, coconut oil, etc will come under different HSN codes and GST rates. Look up their respective classifications.