Snacks HSN Code: Complete Guide
Snacks include namkeen, chips, extruded snacks and many ready to eat savoury items that are popular across India. Correct snacks HSN code mapping is important because rates can differ based on ingredients, method of manufacture and branding.
HSN Code for Healthy Snacks and Traditional Namkeen
Traditional Indian namkeen and savoury mixes often fall under chapter 21 which covers miscellaneous edible preparations. A commonly used heading is 2106 for food preparations not elsewhere specified. Some baked or roasted healthy snacks made from cereals or pulses may also fall under headings in chapter 19 or chapter 20 depending on their composition. Always compare your product recipe with tariff descriptions. Packaged branded snacks are usually taxed at eighteen percent, while certain unbranded or loosely sold items may be eligible for five percent rate where notified.
HSN Code for Packaged Snacks and Ready to Eat Products
Packaged chips, extruded snacks, ready to eat mixtures and similar items are normally supplied under brand names and standard pack sizes. These attract GST at the general processed food rate, which is mostly eighteen percent after recent slab changes.
For products like cereal bars and protein snacks, classification can depend on whether they are more like confectionery or more like cereal based preparations. Document your reasoning when choosing a heading. Online sellers should align their product listings and accounting software so that the snacks HSN code is consistent across platforms.
How HSN Codes Help in Classifying Snack Products?
The snacks HSN code helps tax officers and traders understand what kind of snack is being supplied without reading every ingredient list. When you maintain clear mapping of every stock keeping unit to its HSN and GST rate, preparation of GSTR one and annual returns becomes much easier. If you introduce new health focused snacks or innovative formats, revisit the classification to see whether a different heading or rate applies.
HSN Codes and GST Rates for Snacks
| HSN Code | Product Description | Product Type or Variant | GST Rate |
|---|---|---|---|
| 2106 | Food preparations not elsewhere specified | Namkeen mixes, savoury snack mixtures | 18% |
| 1904 | Prepared foods obtained from cereals | Cereal based puffs and extruded snacks | 18% |
| 2008 | Fruit, nuts and other edible parts prepared or preserved | Flavoured roasted nuts and seeds sold as snacks | 5% or 18% |
Conclusion
Snacks HSN codes usually fall in a small group of food preparation headings but the exact choice depends on ingredients and preparation method.
By mapping each snack correctly and monitoring GST rate changes, snack manufacturers and traders can keep compliance smooth and pricing transparent.
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
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What is the HSN code for snacks?
Many packaged snacks and namkeen products are classified under heading 2106 for miscellaneous edible preparations, though some cereal based items can fall under chapter 19.
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How are healthy snacks classified under HSN codes?
Healthy snacks like baked mixtures or roasted seeds are classified based on their main ingredient and preparation. They usually still fall in the same edible preparation chapters as regular snacks.
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Do packaged snacks have separate HSN codes?
Different snack products can use different detailed HSN lines within the same heading, especially when ingredients differ. However the broad chapter and rate band are often similar across snack types.
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Why is HSN code important for snack businesses?
Snack businesses need HSN codes for billing, e way bills, exports and GST returns. Correct coding reduces the risk of rate disputes and supports smooth audits.
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How does HSN code affect pricing for snacks in India?
The HSN code determines whether a snack is taxed at five percent or eighteen percent. This directly influences maximum retail price and trade margins.