Seeds HSN Code: Classification for Agricultural, Flower & Vegetable Seeds
Seeds are the starting point of every crop. Farmers, traders and input dealers buy and sell seeds every day for cereals, pulses, oilseeds, flowers and vegetables. Under GST, all these seed supplies must be reported with the correct HSN code so that tax is calculated properly and records stay clean.
Most agricultural seeds are either fully exempt or taxed at a lower GST rate. However, the exact treatment depends on whether the seed is meant for sowing, how it is packed and whether it is branded. That is why understanding the HSN code structure for seeds is very important for anyone dealing in agri inputs.
What is the HSN Code for Seeds?
In GST, seeds are generally covered under Chapter 12 of the Customs Tariff, mainly under heading 1209. This heading covers seeds, fruits and spores that are used for sowing. Different crops such as vegetables, flowers and field crops are grouped under this heading with more detailed subheadings at four or six digit level.
If the same crop is sold as normal food grain for human or animal consumption, it may fall under some other heading like cereals, pulses or oilseeds. So the purpose of use is very important when deciding the correct HSN code for seeds.
How Agricultural Seeds Are Classified under HSN
Agricultural seeds for sowing are identified separately from ordinary grain. For example, wheat grain supplied as food usually falls under cereal headings, but certified wheat seed for sowing is covered under heading 1209 as seed. Similar logic applies to paddy, maize, pulses and oilseeds.
To treat a supply as seed for sowing, invoices, packing and product labels should clearly mention that it is seed quality and not meant for direct consumption. In many cases, certification from an authorised seed certification agency is also used as supporting evidence during audits.
How Agricultural, Flower and Vegetable Seeds Are Classified under HSN
Flower seeds, lawn seeds and vegetable seeds used in kitchen gardens or farms are also covered under the same broad heading for seeds. Within this heading, subheadings may distinguish between different types of plants, but in general they are all treated as seeds for sowing when supplied for cultivation or gardening.
If the same plant product is sold as dried herb, spice or edible item instead of seed, it may fall under other headings in Chapters 7, 9 or 12. Therefore, while deciding the HSN code, the main question is whether the product is being sold as seed for sowing or as a normal agro commodity.
Common Seeds HSN Codes and GST Rates
The table below gives a simple reference for typical HSN codes and GST rates applied to common seed categories. Actual classification can vary based on product description and latest GST notifications.
| Product type | HSN code | Product description | GST rate |
|---|---|---|---|
| Agricultural seeds for sowing | 1209 | Seeds of cereals, pulses and oilseeds supplied for sowing purposes | 0% |
| Flower seeds | 1209 | Seeds of ornamental flowers used in gardens and nurseries | 0% |
| Vegetable seeds | 1209 | Seeds of vegetables for kitchen gardening and commercial farming | 0% |
Note: Most seeds for sowing are either exempt or taxed at a concessional rate where applicable. Always check the latest GST notifications or consult your tax advisor before finalising the rate.
GST on Seeds and Agricultural Products
Under GST, basic agricultural produce and seeds for sowing are given special treatment to support farmers. In many cases, supplies of certified seeds are fully exempt from GST when they meet the conditions notified by the government. However, branded, processed or treated seeds, or seeds supplied in consumer style packs, may attract a concessional rate such as 5%.
Traders and manufacturers should review each product carefully. If the seed has been coated, treated with chemicals, or mixed with fertilisers or other inputs, its HSN classification and GST rate may change.
How to Choose the Correct HSN Code for Seeds in GST Returns
When you file GST returns, you must report outward supplies with the correct HSN code. For seed businesses, the following steps can help:
- Check whether the product is being sold as seed for sowing or as normal food grain.
- Read the full description of heading 1209 and related subheadings in the tariff.
- Verify the crop type, variety and intended use as mentioned on the invoice and packaging.
- Confirm whether the supply is eligible for exemption or a concessional GST rate.
- Keep supporting documents such as seed certification, product brochures and contracts for future reference.
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
-
What is the HSN code for agricultural seeds?
Agricultural seeds supplied for sowing, such as seeds of cereals, pulses and oilseeds, are generally classified under heading 1209. The exact subheading may change based on the crop type, but 1209 is the main HSN heading for seeds for sowing.
-
Are flower seeds classified separately under HSN?
Flower seeds are also grouped under the seeds heading in Chapter 12. They fall under subheadings of 1209 that cover seeds for sowing. They are not kept in a completely separate chapter, but the description in the tariff will specify that they are flower seeds.
-
How does GST apply to seeds and plant products?
Most seeds for sowing are either exempt from GST or charged at a lower rate, provided they meet the conditions notified by the government. Plant products sold as food, spices or oilseeds may fall under other headings and can attract 5% or 18% GST depending on the item.
-
Can vegetable seeds have a different HSN code based on packaging?
Vegetable seeds used for sowing are generally classified under heading 1209 regardless of packaging. However, when they are sold as ready to eat or processed food items, they may shift to other headings and attract a different GST rate. Branding and retail style packaging can also affect the effective GST treatment.
-
Are imported and locally grown seeds categorized under the same HSN?
Yes. HSN codes are based on the nature of the product, not on its origin. Imported and locally grown seeds of the same type normally fall under the same HSN heading. Only the customs duty and valuation rules differ for imports, while the GST classification remains aligned with the tariff schedule.