Ground Nut HSN Code 1202 and GST Rate
What is HSN Code 1202?
HSN Code 1202, or Ground Nut HSN Code 1202, specifically classifies "Ground-nuts, not roasted or otherwise cooked, whether or not shelled or broken" under Chapter 12 of the GST tariff, which deals with oil seeds and oleaginous fruits. This code is crucial for India's massive groundnut industry, where peanuts serve as a staple for oil extraction, snacks, animal feed, and exports.
India ranks as the second-largest producer of groundnuts globally, with key states like Gujarat, Andhra Pradesh, and Tamil Nadu leading production. The HSN Code 1202 distinguishes raw peanuts from processed ones—covering in-shell varieties, shelled kernels (including High Protein Seed or HPS quality), seeds for sowing, and broken fragments. Businesses must use precise 8-digit sub-codes for accurate invoicing, ITC claims, and customs clearance during exports.
Whether you're a farmer selling directly to mills, a trader in APMC mandis, or an exporter shipping to Europe and Asia, understanding 1202 HSN Code ensures compliance and cost efficiency.
GST Rates & Exemptions for HSN Code 1202
The Ground Nut hsn code gst rate under HSN Code 1202 remains a flat 5% GST across all sub-categories since July 1, 2017, with zero compensation cess. This agri-friendly rate supports the supply chain without needing special exemptions for standard raw forms.
No rate hikes have occurred through 2025 GST Council meetings, making it stable for budgeting. Exports qualify as zero-rated supplies, allowing refunds on input taxes like transport and storage.
Table Notes
Select the exact 8-digit code based on form (in-shell, shelled, seed quality) and variety (HPS or other) for B2B invoices. HPS denotes premium, high-protein kernels favored for oil yield. All rates confirmed via CBIC's GST e-invoice master codes—no revisions post-2020 notifications.
GST Rates Applicable Under 1202
What’s Included in HSN 1202?
HSN Code 1202 exclusively covers unprocessed raw groundnuts:
- In-shell peanuts: Whole pods from farms, including bold varieties.
- Shelled kernels: Peeled nuts, whole or broken, HPS (high oleic, high protein).
- Seeds: For replanting, certified varieties.
- Broken fragments: From shelling process, used in feed or low-grade oil.
This code supports India's ₹20,000+ crore groundnut economy, fueling 40% of domestic edible oil needs. Roasted peanuts shift to HSN 2008 (12-18% GST), while peanut butter falls under 2008.11.
Key Exemptions Under GST for 1202
Standard raw groundnuts under 1202 HSN Code need no exemptions—5% covers everything. However:
- Farmers with turnover below ₹20 lakh (₹40 lakh in special states) skip registration.
- Composition scheme available for traders (1-5% on turnover).
- Exports: Zero-rated under LUT/bond, full input refunds.
No cess or additional taxes apply, unlike some agri-exports.
Input Tax Credit (ITC) Rules for Ground Nuts
Registered businesses claim 100% ITC on the 5% Ground Nut hsn code gst rate when:
- Purchasing for resale, oil milling, or taxable processing.
- Invoices show correct HSN 1202 sub-code, GSTIN, and e-way bill (if >₹50,000).
- Used in taxable outward supplies like peanut oil (HSN 1508, 5%).
Blocked ITC cases:
- Exempt farmer supplies.
- Personal consumption or non-business use.
- Mismatched GSTR-2A/2B data.
Example: Mill buys 10 tons kernels (12022010) at ₹45,000/ton + ₹2,250 GST—claims ₹22.5 lakh ITC against oil sales.
GST on Ground Nut Billing: Practical Scenarios
- APMC Trader: Sells 5 tons in-shell HPS (12021011) to exporter at ₹40/kg + 5% GST (₹10,000). Exporter claims ITC, files zero-rated refund.
- Oil Miller: Purchases shelled kernels (12022010), pays 5% GST, offsets against refined oil (also 5%)—net zero tax burden.
- Feed Manufacturer: Buys broken nuts (12024290) for cattle feed (5% GST), claims ITC fully.
- Farmer Sale: Direct to mill under composition—no GST charged, but mill can't claim ITC.
E-way bills mandatory for interstate movement >50kg.
Common Mistakes in Ground Nut GST
- Wrong HSN: Using 0802 (nuts) instead of HSN Code 1202 for raw peanuts—leads to ITC denial.
- Rate Errors: Charging 0% or 12% on raw nuts (roasted only at higher rates).
- Invoice Gaps: Missing HSN/quantity details, triggering notices.
- Export Misses: Forgetting LUT for zero-rating, paying unwanted 5% IGST.
- Seed Confusion: Treating sowing seeds as exempt (they're 5% under 120230).
Conclusion
Ground Nut HSN Code 1202 streamlines India's peanut trade with a consistent 5% Ground Nut hsn code gst rate, balancing revenue and farmer support. From Gujarat mandis to global exports, accurate HSN usage unlocks ITC, refunds, and compliance.
Traders should integrate e-invoicing, reconcile GSTR-2B monthly, and monitor CBIC updates. This ensures seamless cash flow in the ₹1.5 lakh crore groundnut value chain through 2025 and beyond.
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FAQs: HSN Code 1202 & Ground Nut GST
What is HSN 1202?
HSN Code 1202 covers raw, unroasted groundnuts— in-shell, shelled kernels, seeds, broken.
What’s the standard GST rate?
5% GST uniform for all 1202 HSN Code variants since 2017.
Can ITC be claimed?
Yes, full ITC for registered businesses with valid HSN invoices.
Are farmer sales exempt?
Farmers below threshold skip GST; others charge 5%, but composition scheme available.
HSN for roasted peanuts?
Roasted shifts to HSN 2008 (12-18% GST), not 1202.