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HSN Code List for Major Agro Commodities in India (2025 Update)

By Pravarsh Sharma

Oct 08, 2025 | 5 Mins

Category - Agri Commodities

Key Highlights:

  • The 2025 Reality: The new HSN updates aren't just administrative noise; they are the blueprint for smoother GST filing and faster Input Tax Credit (ITC) claims.
  • Risk Control: Precision here is your best defense against customs hold-ups and the demurrage charges that eat into your margins.
  • Operational Flow: Keeping your codes verified isn't just about compliance; it's the only way to ensure your bulk documentation clears automated checks quickly.

If you have been in the agro-game for more than a quarter, you know that HSN (Harmonized System of Nomenclature) codes are the DNA of your shipment. It’s the only language that matters when your goods cross a border or move interstate.
With the 2025 updates, the margin for error has vanished. For traders, millers, and exporters, "close enough" is no longer good enough.
Let’s be real: getting the HSN code right isn’t just about making the taxman happy. It’s about protecting your cash flow. A wrong code doesn’t just mean a fine; it means your container gets stuck at the port while the meter runs, or your buyer refuses to pay because the duty structure changed on their end. In our sector, where margins are thin and volume is king, accuracy is what keeps the business moving.

Why HSN Codes Matter in Agro Trade

HSN codes are more than data entry fields. In the daily grind of trading, they serve four critical functions:

  • Guaranteed GST Compliance: The correct code ensures your GSTR-1 and GSTR-3B match up perfectly, preventing those dreaded notices from the department.
  • Frictionless Exports: Customs officers don't examine the grain; they examine the code. The right numbers mean your Shipping Bill gets approved without queries.
  • Provide Pricing Clarity: They help both buyers and sellers determine the exact "landed cost", as that dictates the cess and duties to be included on the invoice.
  • Support Bulk Transactions: The right HSN code is essential for error-free workflow automation when creating e-invoices for more than 50 trucks per day.

For exporters, this is the difference between a shipment that sails on time and one that gets flagged for inspection.

Updated HSN Codes for Key Agro Commodities (2025)

Here is the current list of the major agricultural products with their 2025 HSN codes and GST rates in India.
Commodity
 

Commodity HSN Code GST Rate
Paddy (Raw in Husk) 1006.10 Exempt
Wheat 1001 5%
Maize (Corn) 1005 5%
Rice (Milled) 1006.30 5%
Barley 1003 5%
Soybeans 1201 5%
Sunflower Seeds 1206 5%
Groundnuts (Peanuts) 1202 5%
Cotton 5201 5%
Sugarcane 1212 Exempt

Author's Note: These reflect the 2025 GST Council notifications. Be very careful with Rice confusing 1006.10 (Paddy) with 1006.30 (Milled/Parboiled) is the most common audit trigger we see.

GST Rates and HSN Usage Tips

Agro-commodities generally enjoy low tax brackets to support the farmer, but the processing stage changes everything. Here is the insider breakdown:

  • 5% GST: The standard for most raw produce once it hits the commercial market.
  • Exempt: Strictly for unprocessed items (like fresh paddy). If you put it in a branded container, you might lose this exemption.
  • 18% GST: The danger zone. This usually kicks in for processed foods or specific value-added packaging.

Field-Tested Best Practices:

  • Don't Set It and Forget It: The GST Council issues circulars frequently. Relying on a list from 2023 is a dangerous gamble.
  • Precision Pays Off: Classifying products requires a keen eye. A generic "Rice" code won't cut it when the invoice asks for specific grain length or processing method details.
  • Lean on Tech: Stop Googling codes. Use specialized platforms like Tradologie that act as a single source of truth for verified HSN classifications.
  • Invoice Hygiene: Your commercial invoice must carry the full HSN (e.g., 1006.30.10). It helps your buyer clear customs faster, which makes you a preferred supplier.
  • Educate the Floor: Your accounts team knows the tax rates, but do they know the product? Make sure there is a feedback loop between the warehouse and the billing desk.

HSN Codes and Export-Import Compliance

For exporters, the HSN code is essentially the passport for your cargo.

  • Customs Clearance: Discrepancies between the physical goods and the declared HSN are the #1 cause of port delays.
  • Tariff Determination: Your buyer’s import duty is calculated based on the first 6 digits. If you get this wrong, you mess up their costing, and you might lose the client.
  • Trade Agreements: Want to claim zero-duty benefits under an FTA? Your HSN code has to match the treaty requirements perfectly.
  • Global Reporting: Governments use this data to track export health. Accurate reporting helps the industry lobby for better incentives.

Strategic Advantages for Traders

Here is the part most people miss—using correct HSN codes isn't just about playing defense; it’s a competitive advantage:

  • Cost Optimization: Accurate coding prevents overpayment of taxes and eliminates the risk of 100% penalties during audits.
  • Operational Efficiency: It allows you to digitize bulk documentation, saving hours in manual entry.
  • Better Supplier Selection: When a supplier sends a quotation with the correct 8-digit HSN code, you know you can trust them as professional partners.
  • Market Insights: Smart traders analyze trade data by HSN code to spot demand spikes in specific commodities before the rest of the market catches on.

With India's agro exports growing, getting your HSN classification right is more important than ever. Digital platforms like Tradologie, which provide HSN updates along with other trade data, are helping businesses stay compliant while they expand their reach.
Adopting these digital tools and keeping up with GST updates gives traders, exporters, and bulk buyers a real competitive edge in 2025.

Conclusion

HSN codes are the framework that holds the Indian agro-trade system together. Mastering them ensures:

  • You stay compliant with GST and the Foreign Trade Policy.
  • Your exports move through the "Green Channel" at customs.
  • You avoid the financial bleed of fines and shipment delays.
  • Your bulk invoicing becomes a streamlined, automated process.

For those of us moving major volumes in agro-commodities, the 2025 HSN updates aren't optional reading. They are the rulebook. Use verified platforms, plan your documentation, and treat compliance as a core part of your business strategy.
 

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