Petrol HSN Code for GST Filing
Petrol is a major fuel used by individuals, transporters and businesses across India. Many taxpayers search for the petrol HSN code and GST rate while preparing invoices and returns.
Under the present law some petroleum products including petrol are kept outside the regular GST system, so it is important to understand how classification works and how to report related transactions correctly.
What is the HSN Code for Petrol and Other Fuel Products?
Petrol and several related fuel products are grouped under Chapter 27 of the customs tariff which deals with mineral fuels and oils. The HSN code mainly used for petrol and similar motor spirits is 2710, with further digits specifying the exact type of fuel.
| HSN Code | Product name | Product description | GST rate |
|---|---|---|---|
| 2710 | Motor spirit petrol | Petrol and similar motor spirit used as fuel in motor vehicles | Not under GST currently |
| 2710 | High speed diesel | Diesel fuel used in vehicles and industrial machinery | Not under GST currently |
| 2710 | Aviation turbine fuel | Fuel used for aircraft engines | Not under GST currently |
| 2710 | Other petroleum oils | Other petroleum based fuels and oils covered in the same heading | Not under GST currently |
How Does GST Apply to Petrol, Gasoline, and Fuel Products?
At present key petroleum products such as petrol, diesel and aviation turbine fuel are kept outside the GST chain. These fuels continue to attract central excise duty and state level value added tax or sales tax rather than GST. Therefore no GST rate is applied on the sale value of these fuels.
However services linked with fuel such as transportation, storage and handling by third parties may fall under GST with their own service classification and rates. Businesses should clearly separate the value of fuel itself from the value of such taxable services in their books.
Why Is Petrol Classified Separately Under HSN Code for GST?
Even though petrol is outside the regular GST rate structure, the same HSN chapter is used in customs and other tax laws for import, export and reporting. Having a clear HSN code for petrol helps align customs duty, excise duty and any future GST treatment if petroleum products are later brought fully under GST.
Taxpayers dealing in petrol should therefore keep track of both the HSN classification in Chapter 27 and the current policy about inclusion or exclusion from GST, as this directly affects how invoices and tax returns are prepared.
How to Classify Petrol Correctly for GST Returns?
Dealers in petrol and other excluded fuels usually report these supplies outside the scope of GST in their returns while still following the HSN structure for internal records and regulatory filings. Any ancillary taxable services, such as transportation or storage billed separately, should be classified under the correct service code with the applicable GST rate.
Businesses should closely follow government notifications, because if petrol is brought fully into GST in the future the same HSN code 2710 may be used along with a specific GST rate. At that stage invoice formats and system configurations will have to be updated.
Conclusion
Petrol and similar fuels are grouped under HSN code 2710 in Chapter 27 but are presently kept outside the regular GST levy. Instead they attract central excise and state taxes. Understanding this structure helps fuel dealers, transporters and large consumers prepare correct invoices, separate GST liable services from non GST fuel supplies and stay ready for any future policy changes.
I am a Chartered Accountant with 5 years of experience specializing in GST, income tax, and HSN code classification. I help businesses with GST compliance, tax planning, and financial advisory, ensuring they meet regulatory requirements while optimizing their tax strategies. I aim to simplify GST filings, income tax laws, and HSN code classifications, helping professionals and business owners stay informed and compliant.
Frequently Asked Questions
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What is the HSN code for petrol?
Petrol for use as fuel in motor vehicles is generally classified under HSN code 2710 in the chapter that covers mineral fuels and oils.
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How is the GST applied to petrol and gasoline products?
At present petrol and some other key fuels are kept outside GST, so GST is not charged on their sale value. Instead central excise duty and state level taxes apply.
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Are fuel products classified under different HSN codes for GST?
Yes. Different fuel products such as petrol, diesel and aviation turbine fuel fall under different subheadings of Chapter 27, although many share the main four digit code 2710.
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How do I file petrol HSN codes for GST returns?
Supplies of petrol are usually shown as outside the scope of GST, but you should still keep internal records using the correct HSN code 2710 and apply GST only on related taxable services if any.
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How does the GST rate vary for different fuel products?
Because core petroleum products like petrol are currently outside GST, no GST rate is applied on them. If a fuel product is covered by GST in future, its rate will be specified through a separate notification.