Table of Contents
- Updated on : September 19, 2025
HSN Chapter 27: Mineral Fuels, Oils & Waxes Classification & GST India
HSN Code & GST Rate for Coal, Petroleum & Other Fossil Fuels - Chapter 27
HSN Chapter 27 maintains a complex GST structure post-September 2025 reforms, with strategic differentiation between essential fuels at favorable rates and processed petroleum products at higher rates. The chapter excludes major transport fuels (petrol, diesel, ATF) from GST while implementing a dual-rate system supporting essential energy needs through 5% rates on coal, LPG, and kerosene while applying 18% GST on industrial petroleum products and processed fuels.
Key Classification Factors for Mineral Fuels & Petroleum Products GST Rates
- Essential Fuel Support: Coal, LPG for households, and kerosene PDS at 5% GST
- Industrial Products: Most petroleum products and processed fuels at 18% GST
- Transport Fuel Exclusion: Petrol, diesel, and ATF remain outside GST
- Environmental Consideration: Bio-gas at favorable 5% rate supporting clean energy
Complete HSN Code Table: Mineral Fuels, Oils & Waxes (Chapter 27)
| GST Rate | Product Description | HSN Code | Export/Import HSN Codes |
|---|---|---|---|
| 18% | Coal; briquettes, ovoids and similar solid fuels manufactured from coal | 2701 | 27011100, 27011200, 27011910, 27011920, 27011990, 27012010 |
| 18% | Lignite, whether or not agglomerated, excluding jet | 2702 | 27021000, 27022000 |
| 18% | Peat (including peat litter), whether or not agglomerated | 2703 | 27030010, 27030090 |
| 5% | Coke and semi coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon | 2704 | 27040010, 27040020, 27040030, 27040040, 27040090 |
| 5% | Coal gas, water gas, producer gas and similar gases, other than petroleum gases and other gaseous hydrocarbons | 2705 | 27050000 |
| 18% | Tar distilled from coal, from lignite or from peat, and other mineral tars, whether or not dehydrated or partially distilled, including reconstituted tars | 2706 | 27060010, 27060090 |
| 18% | Oils and other products of the distillation of high temperature coal tar; similar products in which the weight of the aromatic constituents exceeds that of the non-aromatic constituents, such as Benzole (benzene), Toluol (toluene), Xylole (xylenes), Naphthalene | 2707 | 27071000, 27072000, 27073000, 27074000, 27075000, 27079100 |
| 18% | Pitch and pitch coke, obtained from coal tar or from other mineral tars | 2708 | 27081010, 27081090, 27082000 |
| Not in GST | Petroleum crude oils | 2709 | 27090000 |
| 5% | a) Kerosene oil PDS, b) The following bunker fuels for use in ships or vessels, namely, IFO 180 CST, IFO 380 CST, Marine Fuel 0.5 | 2710 | 27101211, 27101212, 27101213, 27101219, 27101220, 27101290 |
| 18% | Petroleum oils and oils obtained from bituminous minerals, other than petroleum crude; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils; waste oils; Avgas [other than Kerosene PDS and other than petrol, Diesel and ATF, not in GST] | 2710 | 27101211, 27101212, 27101213, 27101219, 27101220, 27101290 |
| 5% | Liquefied Propane and Butane mixture, Liquefied Propane, Liquefied Butane and Liquefied Petroleum Gases (LPG) for supply to household domestic consumers or to non-domestic exempted category (NDEC) customers by the Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited or Bharat Petroleum Corporation Limited | 271112, 271113, 271119 | 27111200, 27111300, 27111910 |
| 18% | Petroleum gases and other gaseous hydrocarbons, such as Propane, Butanes, Ethylene, propylene, butylene and butadiene [Other than Liquefied Propane and Butane mixture, Liquefied Propane, Liquefied Butane and Liquefied Petroleum Gases (LPG) for supply to household domestic consumers or to non-domestic exempted category (NDEC) customers] | 2711 | 27111100, 27111400, 27111900, 27112100, 27112900 |
| 18% | Petroleum jelly; paraffin wax, micro-crystalline petroleum wax, slack wax, ozokerite, lignite wax, peat wax, other mineral waxes, and similar products obtained by synthesis or by other processes, whether or not coloured | 2712 | 27121010, 27121090, 27122000, 27129010, 27129020, 27129030 |
| 18% | Petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained from bituminous minerals | 2713 | 27131100, 27131200, 27132000, 27139000 |
| 18% | Bitumen and asphalt, natural; bituminous or oil shale and tar sands; asphaltites and asphaltic rocks | 2714 | 27141000, 27149010, 27149020, 27149030, 27149090 |
| 18% | Bituminous mixtures based on natural asphalt, on natural bitumen, on petroleum bitumen, on mineral tar or on mineral tar pitch (for example, bituminous mastics, cut-backs) | 2715 | 27150010, 27150090 |
| Exempt | Electrical energy | 2716 | 27160000 |
| 5% | Bio-gas | 27 | 27090000 |
⛽ Strategic GST Structure for Energy & Fuel Sector - September 2025:
- Essential Energy Support: Coal coke (5%), LPG for households (5%), and kerosene PDS (5%) supporting basic energy needs
- Clean Energy Promotion: Bio-gas at 5% GST encouraging renewable energy adoption
- Industrial Fuel Taxation: Most petroleum products at 18% GST reflecting commercial and industrial usage patterns
- Transport Fuel Exclusion: Petrol, diesel, and ATF remain outside GST under state and central excise system
- Revenue Protection: Higher rates on processed petroleum products maintaining government revenue from energy sector
- Social Equity: Household LPG and PDS kerosene at low rates supporting lower-income households
- Industrial Input Costs: Raw coal products face mixed rates - affecting steel and power industry input costs
- Maritime Industry Support: Special bunker fuels for ships at 5% GST supporting shipping industry
- Environmental Policy: Lower rates on cleaner fuels and higher rates on carbon-intensive products
⛽ Expert GST for Energy & Petroleum Industries
Professional tax consultancy for the complex energy sector under GST - coal, petroleum, and renewable energy
GST Council Updates
A significant point for Chapter 27 is that petrol and diesel are currently outside the GST regime and are taxed by central excise duty and state VAT. While discussions about bringing them under GST occur, no decision has been implemented. For other items in this chapter, the September 2025 notification shows coal products at mixed rates (5%-18%), LPG for household domestic consumers (5%), and various petroleum oils, bituminous mixtures, and waxes at 18% GST. Electrical energy remains exempt.
Disclaimer
The GST Rate & HSN codes and rates have been arranged as per the best of authors understanding and are subject to periodic updates as per the law for the time being in force. It does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions herein is not ruled out. DisyTax will not be held responsible for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document.