Diesel HSN Code for GST Filing
Diesel is an important fuel for transport, construction, agriculture and power backup. Businesses buy large quantities of diesel for trucks, generators, construction equipment and industrial use.
Even though diesel is presently kept outside the main GST tax net, understanding the diesel HSN code and its treatment is important for correct reporting of non GST supplies and for matching accounts with other tax laws.
What is the HSN Code for Diesel and Other Fuels
In the combined customs and GST tariff, diesel falls under the heading for petroleum oils and oils obtained from bituminous minerals other than crude. Different eight digit codes cover high speed diesel, light diesel oil and related petroleum products.
However, key petroleum products including diesel are specifically kept outside GST. They continue to be taxed through central excise duty and state level value added tax , even though they still retain an HSN classification for trade and customs purposes.
Diesel HSN Code Classification and GST Rates
Here are some commonly used HSN codes and GST rates for this category
| Section | |
|---|---|
| Section No | 5 |
| Section Title | Guide to HSN Section 05 |
| Section Description | MINERAL PRODUCTS |
| Chapter | |
|---|---|
| Chapter No | 27 |
| Chapter Title | Bituminous Substances, Mineral fuel & Oils |
| Chapter Description | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes |
4 Digit HSN Code Classification
| HSN Code | HSN Code Title | GST Rate |
|---|---|---|
| 2710 | Petroleum oils, bituminous minerals | 5% |
8 Digit HSN Code Classification
| HSN Code | HSN Code Title | GST Rate |
|---|---|---|
| 27101211 | Motor Spirit: Special Boiling Pt. 63-70C | 28% |
| 27101212 | Other Special Boiling Point Motor Spirits | 28% |
| 27101213 | Other Motor Spirit Preparations | 28% |
| 27101219 | Natural Gasoline Liquid (NGL) | 28% |
| 27101220 | E 15 fuel conforming to standard is 17586 | 18% |
| 27101221 | Heavy Naphtha | 18% |
| 27101222 | Full Range Naphtha | 18% |
| 27101229 | Solvent 60/80 (IS 1745) | 18% |
| 27101231 | Solvent 50/120 (IS 1745) | 18% |
| 27101232 | Other Light Petroleum Oils | 18% |
| 27101239 | Solvent 145/205 Petroleum Hydrocarbon | 18% |
| 27101241 | M15 Fuel (IS 17076) 1 | 18% |
| 27101242 | Aviation Gasoline (IS 1604) | 18% |
| 27101244 | Superior Kerosene Oil (SKO) | 18% |
| 27101249 | E20 Fuel (IS 17021) | 18% |
| 27101250 | Kerosene Intermediate | 18% |
| 27101290 | Motor Gasoline (IS 2796) | 18% |
| 27101910 | High speed diesel oil | 18% |
| 27101920 | Solvent 125/240 Petroleum Hydrocarbon | 18% |
| 27101930 | Light Diesel Oil (LDO) | 18% |
| 27101931 | Vacuum Gas Oil | 5% |
| 27101932 | Kerosene (Is 1459 Compliant) | 5% |
| 27101939 | Kerosene Type Aviation Fuels | 18% |
| 27101940 | Fuel Oil | 18% |
| 27101941 | Gas oil from gas oil | 18% |
| 27101942 | Light Diesel Oil (IS 15770) | 18% |
| 27101943 | High Flash High Speed Diesel (IS 16861) | 18% |
| 27101944 | Residual Marine Fuel (IS 16731) | 18% |
| 27101949 | Automotive Diesel (Non-Biodiesel, IS 1460) | 18% |
| 27101950 | Base Oil | 18% |
| 27101951 | Fuel oils, Grade LV | 18% |
| 27101952 | Fuel oils, Grade MV 1 | 18% |
| 27101953 | Fuel oils, Grade MV 2 | 18% |
| 27101959 | Fuel oils, Grade HV | 18% |
| 27101960 | Jute Batching Oil & Textile Oil | 18% |
| 27101961 | Mineral Oil (Cosmetics, IS 7299) | 18% |
| 27101969 | Distillate Marine Fuel (IS 16731) | 18% |
| 27101970 | Lubricating Oil | 18% |
| 27101971 | Base and Lubricating Oil | 18% |
| 27101972 | Internal combustion engine oil | 18% |
| 27101973 | Diesel Fuel Blend (B6-B20, IS 16531) | 18% |
| 27101974 | Automotive Gear Oil | 18% |
| 27101975 | Industrial Gear Oil | 18% |
| 27101976 | Engine Oil (IS 14234) | 18% |
| 27101977 | Turbine Lubricating Oil | 18% |
| 27101978 | Machinery/Spindle Oils (IS 493) | 18% |
| 27101979 | Other Lubricating Oil (Non-Bis) | 18% |
| 27101980 | Petroleum Oils & Minerals Containing Bio-Diesel | 18% |
| 27101981 | Neat Cutting Oil (IS 1115) | 18% |
| 27101982 | Other Lubricating Oil (Other BIS) | 18% |
| 27101983 | Cutting Oil (IS 1115) | 18% |
| 27101984 | Hydraulic Oil (IS 3098/IS 11656) | 18% |
| 27101985 | Petroleum Oils And Preparations | 18% |
| 27101986 | Industrial White Oil (IS 1083) | 18% |
| 27101987 | Petroleum Oils & Jute Batching Oil | 18% |
| 27101988 | Transformer Oil (No Bis Standard) | 18% |
| 27101989 | Cutting Oil, Hydraulic, and White Oil | 18% |
| 27101990 | Petroleum Oils, Non-Crude, Not Biodiesel | 18% |
| 27102000 | Petroleum Gases: Liquefied, Other | 18% |
| 27102010 | Automotive Diesel Fuel, Biodiesel | 18% |
| 27102020 | Peptones | 18% |
| 27102090 | Petroleum Oils, Containing Biodiesel, Non-Waste | 18% |
| 27109100 | Waste oil (PCBs/PCTs/PBBs): PCB Waste Oil | 18% |
| 27109900 | Petroleum Oils and Oils from Bituminous Minerals | 18% |
* GST rates may vary based on the latest GST notifications
How Does GST Apply to Diesel, Fuel Oil and Diesel Products?
Because diesel is outside the GST net, there is no standard GST rate notified for high speed diesel and light diesel oil. Supplies of diesel are treated as non GST outward supplies and are reported separately from taxable supplies in GST returns .
Businesses that purchase diesel for trucks, machinery or generators cannot claim input tax credit under GST on the tax charged on diesel, since that tax is levied under excise and state value added tax and not under GST law.
Some related products such as lubricants, certain solvents or petrochemical goods may fall under GST at slabs like 18%, but the diesel fuel itself remains outside GST unless the law is amended in the future.
Why Is Correct Diesel HSN Code Classification Crucial for GST?
Correct diesel HSN code helps businesses separate non GST fuel supplies from their normal taxable turnover. This is important for preparing financial statements, reconciling purchase and sales registers and explaining figures during assessments.
Transporters , fleet owners and works contractors often issue invoices that include both GST taxable services and a recharge of diesel cost. In such cases, clearly marking the diesel component as non GST based on its HSN code reduces the risk of paying GST on the fuel portion by mistake.
Oil marketing companies and bulk diesel sellers also use the diesel HSN code in their documentation so that downstream businesses can correctly classify these purchases in their own books.
How to File Diesel HSN Code Correctly for GST Returns?
In GSTR one and GSTR three B, diesel purchases and sales are usually shown under non GST or exempt supply sections, depending on the instructions for the form at that time.
If you supply diesel along with taxable services such as transport or hiring of machinery, separate the diesel value in your invoice , mark it as non GST with the petroleum HSN code and apply GST only on the service portion as per the applicable rate.
During annual return preparation, reconcile the total diesel purchases and sales in your books with the figures disclosed as non GST supplies, so that there is a clear trail for auditors and tax officers to follow.
If in future diesel is brought under GST, you will already have a clear mapping between diesel HSN codes and your internal ledgers, which will make the transition easier.
Conclusion
Diesel HSN code classification places high speed diesel and related fuel oils under the petroleum oils heading, even though these fuels are kept outside the GST tax net. Their taxation continues through excise duty and state value added tax, so no standard GST rate is notified for diesel at present.
By using the correct diesel HSN code in purchase records and invoices, clearly marking diesel as non GST and reporting it properly in GST returns, businesses can avoid confusion, prevent wrong payment of tax and keep their compliance in line with both GST and non GST tax laws.
As a Chartered Accountant with over 12 years of experience, I am not only skilled in my profession but also passionate about writing. I specialize in producing insightful content on topics like GST, accounts payable, and income tax, confidently delivering valuable information that engages and informs my audience.
Frequently Asked Questions
-
What is the HSN code for diesel?
Diesel is classified under the petroleum oils heading in the tariff, which covers refined petroleum products such as high speed diesel and light diesel oil, identified by specific eight digit codes under that heading.
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Is diesel covered under GST?
At present diesel is not covered under GST. It is taxed separately under central excise duty and state value added tax, so there is no normal GST rate notified for diesel supplies.
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How do I show diesel in my GST returns?
Diesel purchases and any supplies of diesel are normally reported as non GST outward or inward supplies. You should not add them to the taxable turnover on which GST is calculated.
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Do I get input tax credit on diesel used in my business?
No input tax credit is available under GST on diesel because the tax on diesel is not GST but excise and state value added tax. The cost of diesel therefore remains part of your business expense.
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Why do I still need the diesel HSN code if diesel is outside GST?
The diesel HSN code helps you keep proper classification for customs, trade records and financial reporting, and it also helps in separating non GST fuel transactions from GST taxable supplies in your books and returns.