Engine Oil HSN Code: Understanding the Classification for Synthetic and Motor Oils
Engine oil is a key consumable for vehicles and machines. Under GST, engine oil must be classified correctly to charge the right tax and claim input credit.
What is the HSN code for synthetic engine oil?
Engine oils and most lubricant oils that contain petroleum base are usually classified under heading 2710, which covers petroleum oils and oils obtained from bituminous minerals. Certain lubricating preparations without petroleum may fall under heading 3403.
Engine Oil 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% |
| 27101243 | E20 Fuel (IS 17021) | 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
What is the HSN code for engine oil?
Most car and bike engine oils, diesel engine oils, and similar automotive lubricants are covered under heading 2710 as petroleum oils and lubricants. Some high performance synthetic oils may still be in the same heading or under 3403 depending on composition.
How synthetic and car engine oils are classified under HSN?
- If the product is sold as engine oil, motor oil, or gear oil with petroleum base, use 2710
- If it is a prepared lubricant not clearly covered under 2710, check heading 3403
- Read product label and MSDS to know the composition
GST and engine oil products
Engine oils generally attract GST at 18 percent. Oil manufacturers, distributors, service centres and retailers:
- Charge GST on sale invoice
- Claim ITC on purchase of engine oil if used for business
- Ensure proper HSN and GST rate on invoices and e way bills
Jagdish Prasad is a Chartered Accountant with over 5 years of experience. He helps people and businesses with GST, income tax, and HSN codes. Jagdish makes sure his clients follow all tax rules and save money the right way. He also enjoys writing simple articles to help others understand taxes and stay updated with the latest rules.
Frequently Asked Questions
-
Is the HSN code for car engine oil and bike engine oil different?
Both usually fall under the same heading 2710, unless product is very special.
-
Does synthetic engine oil have a separate HSN code?
Not always. Many synthetic oils are still classed under 2710. Some special preparations may go under 3403.
-
What GST rate applies on engine oil?
Most engine oils are taxed at 18 percent under GST.
-
Can a workshop claim ITC on engine oil used in servicing?
Yes, if the workshop charges GST on service and uses engine oil in that taxable supply, ITC is generally allowed.