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Key Highlights:
- Adhesives play an important role in various sectors, including construction, automobile, packaging, and furniture industry.
- The majority of prepared adhesives and glues, no matter what they are made of, are subject to an 18% GST rate, making it easier for consumers and businesses to tax them.
- HSN 3506 covers a range of adhesives, including rubber-based, resin-based, and synthetic adhesives, making it easy for traders to categorise their products.
- Items such as stickers, labels, and adhesive tapes fall under HSN Code 3919, making it easier to categorise them while still having the same 18% GST rate.
Formulated glues and adhesives are an important part of numerous industries, such as packaging, woodworking, construction, and manufacturing. Adhesives are a must for gluing materials, making them last longer, and improving the quality of the product. Because they are used in so many sectors, the taxability of adhesives under the Goods and Services Tax (GST) is an important feature for companies that produce, trade or utilise them.Knowledge of Fevicol HSN code classification and the respective GST rates assists companies with tax compliance, cost savings, and documentation, as well as invoicing.Classification is required to facilitate proper tax filing and prevent penalties. This article offers a detailed overview of the GST rates and HSN codes for prepared glues and adhesives, assisting manufacturers, suppliers, and traders in navigating taxation efficiently. So, let's understand the codes and rates. Also Read - Know the important aspects of GST returns
HSN Codes for Prepared Glues and Adhesives
HSN codes assist in the systematic categorisation of products for taxation and trade. Below are the most important HSN codes for prepared adhesives and glues:
| HSN Codes | Export and Import HSN Codes | Products Description | Rates (%) |
| 3501 | 35011000, 35019000 | Casein glues, casein, caseinates, andothercasein derivatives | 18% |
| 3502 | 35021100, 35021900, 35022000, 35029000 | Albuminates,otheralbumin derivatives, and albumins (includingtwo or more whey proteinconcentrationscontainingby weight more than 80% whey proteins,accordingtothe dry matter) | 18% |
| 3503 | 35030010, 35030020, 35030030, 35030090 | Gelatin andgelatinderivatives; isinglass; other glues of animal origin,excludingcasein glues of heading 3501; and gelatin (including gelatin in rectangular (including square) sheets, whethersurface-workedor not,andwhetherornotcoloured) | 18% |
| 3504 | 35040010, 35040091, 35040099 | Peptones andderivativesthereof; otherproteinaceousmatterand their derivativesnotlistedor included elsewhere; hide powder, including isolated soy protein,chromedor notchromed | 18% |
| 3505 | 35051010, 35051090, 35052000 | Gluesconstructedofstarches, dextrins, or other modified starches; dextrins and other modified starches (i.e.,pregelatinised or esterified starches); | 18% |
| 3506 | 35061000, 35069110, 35069190, 35069910, 35069991, 35069999 | Prepared glues and other prepared adhesivesnotspecifiedor included elsewhere;articlescapableofbeingused as glues or adhesives andpresentedforretailsaleinthatform, with a net weightnotexceeding1 kg | 18% |
| 3507 | 35071011, 35071019, 35071091, 35071099, 35079010, 35079020, 35079030, 35079040, 35079050, 35079061, 35079062, 35079069, 35079071, 35079079, 35079091, 35079099 | Prepared enzymes and enzymes | 18% |
Also Read - Know the GST rates on construction material and services
Why is GST Classification Important?
The GST classification and rate for adhesives are crucial in setting prices, trade, and compliance for companies. With a uniform 18% GST rate, taxation is easier, minimising variations in the market. Accurate classification under the applicable HSN codes (3506, 3909, and 3919) facilitates easy trade operations and prevents unnecessary penalties or misfiling.Knowledge of the relevant GST rates enables improved financial planning, cost control, and input tax credit claims for producers, traders, and consumers. Adhesives are critical components in many industries, ranging from packaging and construction to furniture and automotive uses. By complying with GST rules and proper classification, companies can stay compliant and enjoy an efficient taxation system.
Know the Correct HSN Codes and GST Rates
With the GST system providing a level playing field through a uniform tax structure, industries employing adhesives can concentrate on innovation, quality enhancement, and growth without worrying about intricate tax calculations. Staying updated with GST legislation and Fevicol HSN code classifications is necessary for smooth and efficient business operations.It is equally important to file your GST returns correctly. Use the online GST calculator to find your GST liability and pay your taxes seamlessly.
FAQS - FREQUENTLY ASKED QUESTIONS
What is the GST rate for prepared glues and adhesives?
Prepared glues and adhesives usually have an 18% GST rate, falling under HSN 3506.
Are self-adhesive tapes taxed differently from glues?
No, self-adhesive tapes, films, and foils come under HSN Code 3919 and have the same 18% GST as prepared glues to maintain consistency in taxation.
Do polymer-based adhesives have a different GST rate?
No, polymer-based adhesives like polyurethane or epoxy-based glues are classified under HSN code 3909 and attract 18% GST, just like other adhesives.
Do industrial adhesives attract a higher rate of tax?
No, industrial adhesives, both resin-based and synthetic, attract 18% GST, just like adhesives for use in households or for commercial purposes.
Can businesses take input tax credit (ITC) on adhesives?
Yes, companies buying adhesives for resale, manufacture, or other commercial purposes can claim input tax credit (ITC) on the GST paid, which allows them to decrease their tax outgo.
What is the rate of GST for glue sticks and synthetic glues?
Glue sticks and synthetic adhesives fall under HSN code 3506 and are subject to 18% GST. This applies to widely used items such as school glue sticks and industrial synthetic adhesives.
Do imported adhesives attract more duties?
Yes, imported adhesives attract custom duties on top of 18% GST. The end tax burden is based on the product's country of origin, its classification, and any applicable import tariffs.
Are natural adhesives charged a lower GST rate?
No, all manufactured glues and adhesives, both natural and synthetic, come under HSN 3506 and are subject to 18% GST. This is without any specific exemption for natural or environment-friendly varieties.
Does packaging adhesive have a different GST?
No, adhesives specifically for use in packaging, like carton-sealing glues or label adhesives, are under HSN code 3506 and are subject to 18% GST.
How is the adhesive industry affected by GST?
The GST model simplifies taxation, promoting compliance and consistency in pricing. It minimises business complexity, eases logistics and invoicing, and benefits manufacturers, retailers, and consumers alike in cost management.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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