Cashew HSN Code: Classification for Raw and Cashew Nuts
Cashew is a high value dry fruit used both as a raw agricultural commodity and as a ready to eat snack. For GST, it is important to classify cashew correctly because the HSN code and GST rate can change once it is processed, roasted or packed as a snack.
Under GST, cashew and cashew nuts are usually classified in Chapter 8 of the Customs Tariff, which deals with edible nuts and fruits. Raw cashew in shell, shelled cashew kernels and roasted cashew snacks may all fall under different HSN level detail even though they look similar in day to day trade.
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Cashew HSN Code Classification and GST Rates
Here are some commonly used HSN codes and GST rates for this category
Section Classification
Chapter Classification
| Chapter Field | Chapter Value |
|---|---|
| Chapter No | 8 |
| Chapter Title | Edible Fruit and Nuts; Peel of Citrus or Melons |
| Chapter Description | Edible fruit and nuts; peel of citrus fruit or melons |
Chapter Field
Chapter Value
Chapter Field
Chapter Value
Chapter Field
Chapter Value
4 Digit HSN Code Classification
8 Digit HSN Code Classification
| HSN Code | HSN Code Title | GST Rate |
|---|---|---|
| 08011100 | Desiccated Coconuts | 5% |
| 08011210 | Fresh Coconuts (Endocarp) | 0% |
| 08011220 | Dried Coconuts (Endocarp) | 0% |
| 08011290 | Other Coconuts (Endocarp) | 0% |
| 08011910 | Fresh Coconuts, Other | 0% |
| 08011920 | Dried Coconuts, Other | 0% |
| 08011990 | Other Coconuts | 0% |
| 08012100 | Brazil nuts | 0% |
| 08012200 | Brazil nuts: shelled | 0% |
| 08013100 | Cashew Nuts – In Shell | 5% |
| 08013210 | Cashew Kernels – Broken | 5% |
| 08013220 | Shelled Cashew Nuts – Whole | 5% |
| 08013290 | Shelled Cashew Nuts – Other | 5% |
* GST rates may vary based on the latest GST notifications
What is the HSN Code for Cashews?
For most trade in raw cashew nuts, the HSN code generally falls under heading 0801.
- When the nuts are still in shell, they are usually covered under a more specific code such as 08013100.
- When the nuts are shelled but not roasted or salted, they are normally covered under a code such as 08013210.
If the cashew has been roasted, salted or otherwise prepared and sold as a snack, it can move to Chapter 20, which covers preparations of vegetables, fruits and nuts. That is why snack cashew pouches may show a code such as 20081910 instead of 0801 level codes.
How Raw Cashews Are Classified under HSN?
Raw cashew can be traded in many stages. Some traders deal only in raw in shell nuts, while others handle cleaned and graded kernels.
- Raw in shell cashew is generally classified as an agricultural produce under the 0801 level code, as long as there is no further processing beyond drying, cleaning and basic grading.
- When the shell is removed and kernels are sorted by size and quality, the product still stays under Chapter 8 but shifts to the shelled cashew sub code.
The moment cashew is roasted, salted, coated with spices or mixed with other ingredients, it may be treated as a prepared food product and classified under Chapter 20 with a higher GST rate. This change in character is important for correct HSN and GST mapping.
The HSN Code for Cashew Nuts
For GST returns, businesses that sell raw cashew nuts usually use the 0801 type HSN code at four or six digit level. This keeps reporting consistent between purchase, sale and GSTR forms.
For processed cashew snacks, the code often belongs to the 2008 family, which covers edible preparations of nuts. Invoices for such packed snack items must clearly mention that the product is roasted or flavoured and show the correct HSN so that GST is calculated at the right slab.
GST Implications on Cashew Products
GST on cashew is linked to how much processing has happened.
- Raw cashew nuts generally enjoy a lower GST rate, typically around 5 %.
- Roasted, salted or flavoured cashew sold as ready to eat snack is usually taxed at a higher slab such as 12 %.
If a trader wrongly uses the lower rate for roasted cashew, there is a risk of demand and interest during audit. On the other hand, applying a higher rate to raw cashew may make the product costlier and affect competitiveness.
