---
title: "HSN Code for Concentrated Sulphate Lye | HSN 38040010 GST Rate"
description: "Find HSN and GST Rates for 38040010 related to Concentrated Sulphate Lye with BUSY Accounting - The reliable source for HSN and GST details in India."
canonical: "https://busy.in/hsn/hsn-38040010/"
---

# HSN Code 38040010: Concentrated Sulphate Lye

- [Section 06: Guide to HSN Section 06](https://busy.in/hsn/section-06/)
- [Chapter 38: Miscellaneous Chemical Products](https://busy.in/hsn/chapter-38/)
- [Sub-chapter 3804: Wood pulp residues](https://busy.in/hsn/sub-chapter-3804/)

## GST rates

| Description | CGST | SGST | IGST | CESS |
| --- | --- | --- | --- | --- |
| Residual lyes for the manufacture of wood pulp, whether or not concentrated, desugared or chemically treated, including lignin sulphonates, but excluding tall oil of heading 3803: Lignin sulphonates | 9% | 9% | 18% | 0% |

## Frequently asked questions

### What products are classified under HSN 38040010 ?

It includes Concentrated Sulphate Lye

### Do e‑way bill and e‑invoice apply for Concentrated Sulphate Lye?

e‑Way bill is needed above ₹50,000 consignment value (subject to exemptions). e‑Invoicing is turnover‑based (presently AATO > ₹5 crore) for B2B supplies.

### How much GST applies to Concentrated Sulphate Lye?

Under HSN 38040010, Concentrated Sulphate Lye attracts Varies when sold in taxable form. Describe the exact form on the invoice.

### Can we claim ITC on inputs used to trade Concentrated Sulphate Lye?

If your outward supply is taxable, eligible ITC is available subject to general restrictions. For exempt/Nil supplies, reverse credit per Rule 42.

### How should mixed supplies be billed when Concentrated Sulphate Lye is sold with other items?

Use separate invoice lines per HSN and apply the correct rate per line (e.g., Varies for Concentrated Sulphate Lye; Nil for exempt items if applicable).

### Does packaging or labelling change the GST for Concentrated Sulphate Lye?

For food/agri items, GST can be 5% when not fresh/chilled and sold as pre‑packaged & labelled; otherwise often Nil. For non‑food items, rates depend on the specific sub‑heading.

### Any common misclassification issue with Concentrated Sulphate Lye?

Use the exact HSN and describe the form/grade. For multi‑line invoices, apply the rate per line to avoid wrong tax collection.

## India's trade performance: HSN Code 38040010 (FY 2024-25)

Source: TradeStat EIDB, Ministry of Commerce & Industry. Values in ₹ Crore (FY 2018-19 to FY 2024-25).

- Exports: ₹11 Cr (+169.06% YoY) — 0.0003% of India's total exports
- Imports: ₹367 Cr (+36.42% YoY) — 0.0060% of India's total imports
- Trade balance: −₹356 Cr (Deficit); surplus rank #11685 of 12657 HSN codes
- Share of Sub-Chapter 3804: 69.77% of its exports; import side 70.51%
- Rank within Sub-Chapter 3804: #1 of 3 by export value; import-side #1

### Key metrics

- Export CAGR: 21.14% (FY 2018-19 to FY 2024-25, 7 fiscal years)
- National export rank: #5699 of 12657 HSN codes by export value (FY 2024-25)
- Peak growth year: +169.06% in FY 2024-25
- Contribution to Sub-Ch. 3804: 69.77% of its exports (FY 2024-25)

## India export-import trade statistics: HSN Code 38040010

7-year export and import data, FY 2018-19 to FY 2024-25, in ₹ Crore. Source: Ministry of Commerce & Industry, TradeStat EIDB.

| FY | Exports (₹ Cr) | Exp share | Exp YoY | Exp % of Sub-Ch. 3804 | Imports (₹ Cr) | Imp share | Imp YoY | Imp % of Sub-Ch. 3804 | Trade balance | Exp rank |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| FY 2018-19 | 3.44 | 0.0002% | — | 48.38% | 142.74 | 0.0040% | — | 62.98% | −139.30 | #6314 |
| FY 2019-20 | 2.72 | 0.0001% | −20.93% | 11.89% | 131.94 | 0.0039% | −7.57% | 63.15% | −129.22 | #6595 |
| FY 2020-21 | 2.45 | 0.0001% | −9.93% | 51.15% | 179.89 | 0.0062% | +36.34% | 68.34% | −177.44 | #6749 |
| FY 2021-22 | 5.32 | 0.0002% | +117.14% | 54.56% | 226.18 | 0.0049% | +25.73% | 57.61% | −220.86 | #6277 |
| FY 2022-23 | 6.97 | 0.0002% | +31.02% | 67.60% | 301.61 | 0.0052% | +33.35% | 68.82% | −294.64 | #6086 |
| FY 2023-24 | 4.04 | 0.0001% | −42.04% | 46.44% | 268.71 | 0.0048% | −10.91% | 66.58% | −264.67 | #6829 |
| FY 2024-25 | 10.87 | 0.0003% | +169.06% | 69.77% | 366.57 | 0.0060% | +36.42% | 70.51% | −355.70 | #5699 |

- CAGR (7-year): exports 21.14%/yr, imports 17.02%/yr (consistently Deficit)

## Key trade insights: HSN Code 38040010 export-import analysis

### Consistent export growth: 21.14% CAGR over 7 years

India's exports under HSN Code 38040010 have grown at a compound annual rate of 21.14% over 7 fiscal years, rising from ₹3.44 Crore in FY 2018-19 to ₹10.87 Crore in FY 2024-25.

### HSN Code 38040010 ranked #5699 among all 12657 HSN codes by export value

In FY 2024-25, HSN Code 38040010 ranks #5699 out of 12657 HSN codes by total export value. Within Sub-Chapter 3804, it ranks #1 of 3. By trade surplus, it ranks #11685 of 12657.

### FY 2024-25 was the strongest growth year for HSN Code 38040010 exports

The strongest single-year export movement for HSN Code 38040010 was recorded in FY 2024-25, when exports surged by 169.06% over the prior year.

### India records a trade deficit of ₹355.70 Crore in HSN Code 38040010 goods

In FY 2024-25, India's imports of ₹366.57 Cr exceeded exports of ₹10.87 Cr, resulting in a trade deficit of ₹355.70 Crore — ranking #11685 of 12657 by surplus magnitude.

### Import growth of 17.02% CAGR signals rising demand for Concentrated Sulphate Lye

India's imports under HSN Code 38040010 have grown at 17.02% CAGR, reaching ₹366.57 Crore in FY 2024-25.

### HSN Code 38040010 contributes 69.77% of Sub-Chapter 3804 exports — ranked #1

Among the 3 HSN codes under Sub-Chapter 3804, HSN Code 38040010 ranks #1 by export value — accounting for 69.77% of the sub-chapter's total exports in FY 2024-25. On the import side, it holds 70.51% share (rank #1).

## Related HSN Codes in Sub-Chapter 3804

Ranked by export value (FY 2024-25).

| Rank | HSN Code | Exports (FY 2024-25) |
| --- | --- | --- |
| #1 | HSN Code 38040010: Concentrated Sulphate Lye (this hsn code) | ₹11 Cr |
| #2 | [HSN Code 38040090: Lignin Sulphonates](https://busy.in/hsn/hsn-38040090/) | ₹5 Cr |
| — | [HSN Code 38040020: Other Iron/Steel Reservoirs (>300L)](https://busy.in/hsn/hsn-38040020/) | Nil |