HSN codes
HSN codes and GST rates for rice, flour and oil mills
For a mill the code rarely changes; the packing does. These are the codes a rice mill, flour mill, dal mill or oil mill uses most, with the by-products it sells.
In short
Rice and paddy sit under HSN 1006, wheat flour under 1101 and edible oils in chapter 15. Loose grain and flour have been nil and pre-packaged, labelled packs 5%. SimpleERP stores the HSN and rate on each product.
Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.
The data
The codes and usual rates
| HSN | Goods | Usual GST rate | Notes |
|---|---|---|---|
| 1006 | Paddy and rice: raw, boiled, broken | Nil / 5% | Nil loose; 5% pre-packaged and labelled, as notified |
| 1001 | Wheat | Nil / 5% | Nil loose; 5% pre-packaged and labelled, as notified |
| 1005 | Maize | Nil / 5% | Nil loose; 5% pre-packaged and labelled, as notified |
| 1101 | Wheat flour (atta, maida) | Nil / 5% | Nil loose; 5% pre-packaged and labelled, as notified |
| 1102 | Other cereal flours: rice flour, maize flour | Nil / 5% | Nil loose; 5% pre-packaged and labelled, as notified |
| 1106 | Flour of pulses (besan) | Nil / 5% | Nil loose; 5% pre-packaged and labelled, as notified |
| 1103 | Suji, rava and cereal groats | Nil / 5% | Nil loose; 5% pre-packaged and labelled, as notified |
| 0713 | Dried pulses, whole or split (dal) | Nil / 5% | Nil loose; 5% pre-packaged and labelled, as notified |
| 1201 | Soya beans | 5% | Bought by solvent and oil mills |
| 1202 | Groundnuts | 5% | Bought by oil mills |
| 1207 | Other oilseeds: mustard, sesame, cotton seed | 5% | Bought by oil mills |
| 1507 | Soya bean oil | 5% | Crude or refined |
| 1508 | Groundnut oil | 5% | Crude or refined |
| 1514 | Mustard and rapeseed oil | 5% | Crude or refined |
| 2302 | Bran of rice and wheat | check | Rate can depend on the bran and its use |
| 2306 | Oil cake and de-oiled cake | check | Rate can depend on the cake and its use |
| 6305 | Sacks and bags of jute or PP | check | Packing material bought by mills |
| 8437 | Grain cleaning, grading and milling machines | check | Capital goods; confirm the current rate |
Sources: CBIC: Customs tariff (HSN chapters), GST Council: rate changes effective 22 September 2025, CBIC: GST rates and notifications. Verified .
Which HSN codes does a mill use most?
Grain and its products live in chapters 10 and 11: paddy and rice in 1006, wheat in 1001, maize in 1005, wheat flour in 1101 and other flours in 1102 and 1106. Pulses sit in 0713, oilseeds in chapter 12, edible oils in chapter 15, and by-products such as bran and oil cake in chapter 23.
Inputs and outputs often share a heading: a rice mill buys paddy under 1006 and sells rice under 1006. What changes the rate is the packing. Loose or unlabelled goods have been nil-rated, while the same goods pre-packaged and labelled have been 5%, so a mill that sells both keeps two products for one grade.
How to check a rate before billing
For a mill, the code is usually easy and the rate depends on how the goods leave the gate. Confirm these before billing.
- Packed and labelled or not: the same rice is nil loose and 5% when pre-packaged and labelled under the notified rules, so check how each bag is packed and printed.
- Pack size matters: the notified rules on pre-packaged goods turn on pack size and on whether the sale is retail, so confirm where your 25 kg and 50 kg bags fall.
- By-products are separate: bran, husk and oil cake each have their own heading and rate.
- Search the code in the CBIC tariff or the GST portal's HSN search, and ask your CA when a product could fall under two headings.
HSN on invoices and the GSTR-1 HSN summary in SimpleERP
A mill's invoice often mixes loose and packed goods. SimpleERP keeps each line's code and rate, and the invoice print gives each rate its own row in the HSN summary.
- HSN on every product and every invoice line, so loose rice and packed rice both print 1006 at their own rates.
- Two products for one grade: keep a loose and a packed product so the right rate fills itself on every line.
- Four or six digits by turnover, as notified: currently four digits on B2B invoices up to ₹5 crore of aggregate turnover and six above it.
- The HSN summary report groups sales by code with taxable value, CGST, SGST and IGST, and exports to CSV for GSTR-1 table 12. It totals by code, so split a code sold at both nil and 5% by rate when you fill table 12. See HSN codes on invoices and GSTR-1 table 12.
Illustration of a profit and loss statement for April to September 2026 with net profit of ₹4,12,800, a GST summary and the lock date.
Inputs and input tax credit for mills
A mill's main input often carries no GST at all, so most of its credit comes from packing, power equipment and machinery.
- Paddy, wheat and oilseeds bought from farmers or traders come in under 1006, 1001 and chapter 12; loose grain usually carries no tax to claim.
- Sacks, machinery and spares arrive under 6305, 8437 and their own codes, and usually carry GST.
- Nil-rated sales limit credit: credit on common inputs used for loose, nil-rated rice generally has to be reversed in proportion, so your CA will work out the share.
- Credit follows GSTR-2B: the purchase register lists every bill with GSTIN, HSN and tax and exports to CSV so your CA can match it against GSTR-2B.
FAQ
Questions, answered
How many digits of HSN must a mill print?
As notified, a business with aggregate turnover up to ₹5 crore in the previous year shows at least four digits on B2B invoices, such as 1006 or 1101. Above ₹5 crore you show six digits on every invoice, such as 100630 for milled rice. More digits are always allowed.
What is the GST rate on rice?
Rice under HSN 1006 has been nil when sold loose and 5% when pre-packaged and labelled under the notified rules. The rules depend on pack size and on how the bag is labelled, so check your bags before billing. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
Is ITC available on paddy for a rice mill?
Paddy bought loose from farmers or traders usually carries no GST, so there is no credit to claim on it. Credit on sacks, spares and machinery is generally available for packed, taxable sales, but the share used for nil-rated sales usually has to be reversed.
Where do I set HSN in SimpleERP?
Open the product, type the HSN code and pick the GST rate, nil or 5%. Every invoice line for that product then carries both, and the HSN summary report groups sales by code. For many grades at once, fill the HSN column in the product CSV import.
Related
Keep reading
GST billing for rice mills
Lorry-load rice invoices with HSN 1006, nil or 5% by packing, and bran and husk billed from the same book.
Read moreAgro processing & mills
Paddy and grain purchases by weight, milling runs at actual cost, and stock in kilos across godowns.
Read moreHSN code
The number that classifies goods for GST and customs, and so decides their GST rate.
Read more
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