No ITC on purchases of wood charcoal itself (0% output), but it is available on inputs used by producers.

GST Rates and HSN Code 4402 for Wood Charcoal

Q: What’s the standard GST rate?

0% GST applies uniformly to all products under HSN code 4402.

Q: Which charcoal types are exempt?

All types under HSN 4402—including coconut shell, bamboo, and wood charcoal—are fully GST-exempt.

Vikash

27 Nov 2025 • 3 min read

What is HSN Code 4402?

HSN Code 4402 classifies "Wood Charcoal (including shell or nut charcoal), whether or not agglomerated" under Chapter 44 for GST purposes in India.This covers charcoal made from wood, coconut shells, bamboo, or nut shells used for fuel, BBQ, industrial heating, or artisanal purposes. While coconuts hsn code (0801) applies to raw coconuts, HSN Code for Wood Charcoal (4402) specifically handles processed coconut shell charcoal.

GST Rates & Exemptions for HSN Code 4402

The wood charcoal hsn code and gst rate under 4402 hsn code is uniformly 0% GST across all sub-categories, with no cess applicable.This zero-rated status applies since GST inception in 2017, making it fully exempt for traders, manufacturers, and exporters.

Table Notes

All entries under HSN 4402 qualify for 0% GST regardless of source material (wood, bamboo, coconut shell) or form (agglomerated or loose).
No rate revisions since 2017; always confirm via CBIC portal for any sector-specific notifications.

GST Rates Applicable Under 4402

Description	HSN Code	GST Rate (%)	Notes
Wood Charcoal (general, including shell/nut)	4402	0	All types covered
Coconut shell charcoal	44020010	0	Popular for BBQ/industrial use
Other wood/nut shell charcoal	44020090	0	Bulk trade
Bamboo charcoal	44021000	0	Eco-friendly fuel variant
Other agglomerated/non-agglomerated charcoal	44029010–90	0	Coconut shell/other sources

(Updated per CBIC GST notifications as of 2025).

What’s Included in HSN 4402?

HSN Code 4402 includes:

Traditional wood charcoal for cooking and heating
Coconut shell charcoal (high-demand export item)
Bamboo and other biomass charcoals
Agglomerated (briquetted) or loose forms for industrial, household, or BBQ use

Excludes activated carbon or specialty charcoals classified elsewhere.

Explore more hsn code and gst rate - with Gimbooks HSN Finder

Key Exemptions Under GST for 4402

Full 0% GST exemption on all wood charcoal products—no conditions on packaging, branding, or quantity.
Export supply treated as zero-rated; eligible for refunds on input taxes.
No exemptions needed since baseline rate is already nil.

Input Tax Credit (ITC) Rules for Wood Charcoal

Since HSN Code 4402 carries 0% GST, no output tax liability exists, meaning no ITC can be claimed or passed on purchases of wood charcoal itself.However, suppliers to charcoal producers (wood, shells, processing) can claim ITC on their inputs. Businesses using exempt charcoal in taxable outputs may claim related ITC.

GST on Wood Charcoal Billing: Practical Scenarios

A trader sells coconut shell charcoal (44020010) to restaurants—invoice shows 0% GST, no tax charged.
BBQ charcoal exporter supplies agglomerated bamboo charcoal (44021000) under LUT/bond for zero-rated export.
Industrial buyer uses wood charcoal in manufacturing—purchases at 0% GST but claims ITC on transport/packaging inputs.

Common Mistakes in Wood Charcoal GST

Incorrectly charging GST on 4402 products, leading to refunds/disputes.
Misclassifying under general fuel codes instead of specific HSN Code for Wood Charcoal (4402).
Forgetting zero-rated export documentation, missing input refunds.
Confusing with taxable activated carbon (3802) or biomass pellets.

Conclusion

HSN Code 4402 ensures wood charcoal hsn code and gst rate remains at 0% GST, benefiting traders, exporters, and users across India.Proper invoicing with exact sub-codes maintains compliance while leveraging the exempt status for cost savings in 2025.

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FAQs: HSN Code 4402 & Wood Charcoal GST

What is HSN 4402?

HSN Code 4402 covers all wood charcoal, including coconut shell, bamboo, and nut shell variants, whether agglomerated or not.

What’s the standard GST rate?

0% GST applies uniformly to all products under 4402 hsn code.

Can ITC be claimed?

No ITC on purchases of wood charcoal itself (0% output), but available on inputs for producers.

Which charcoal types are exempt?

All types under 4402—coconut shell, bamboo, wood—are fully GST-exempt.

What is the classification of wood charcoal in the HSN system?

Wood charcoal, including coconut shell, bamboo, or nut shell charcoal, falls under HSN code 4402 in Chapter 44.

Can activated charcoal be classified under HSN Code 4402?

No, activated charcoal is not classified under HSN code 4402; it falls under a different HSN code used for chemical or activated forms.

Does the 5% GST rate apply to wooden charcoal sheets?

No, all products under HSN code 4402, including wooden charcoal sheets, are exempt from GST and attract a 0% rate.

Is it possible for businesses to claim an input tax credit on the 4402 HSN code GST rate?

Input Tax Credit (ITC) cannot be claimed on purchases of wood charcoal itself since the output GST is 0%, but ITC may be claimed on inputs used to produce charcoal.