Table of Contents
- Updated on : September 19, 2025
HSN Chapter 28: Inorganic Chemicals & Compounds Classification & GST India
HSN Code & GST Rate for Gases & Inorganic Chemicals - Chapter 28
HSN Chapter 28 reflects India's strategic approach to chemical industry taxation post-September 2025 reforms, with most inorganic chemicals attracting favorable 5% GST rates to support essential industries including pharmaceuticals, agriculture, nuclear energy, and manufacturing. This comprehensive rate reduction demonstrates the government's commitment to strengthening India's chemical manufacturing base and supporting critical infrastructure sectors.
Key Classification Factors for Inorganic Chemicals GST Rates
- Essential Industry Support: Most inorganic chemicals at favorable 5% GST
- Healthcare Priority: Medical chemicals and gases at low rates
- Nuclear Energy Support: Nuclear fuels and materials at 5% GST
- Agricultural Inputs: Fertilizer-grade chemicals at affordable rates
Complete HSN Code Table: Inorganic Chemicals & Compounds (Chapter 28)
| GST Rate | Product Description | HSN Code | Export/Import HSN Codes |
|---|---|---|---|
| 5% | Thorium oxalate | 28 | 28121900, 28121100, 28121200, 28121300, 28121400, 28121500 |
| 5% | Enriched KBF4 (enriched potassium fluoroborate) | 28 | 28273920, 28273930, 28273940, 28273990 |
| 5% | Enriched elemental boron | 28 | 28041000, 28042100, 28042910, 28042990 |
| 5% | Nuclear fuel | 28 | 28129000, 28451000, 28459010, 28459090 |
| 5% | Anaesthetics | 28 | Various HSN codes under Chapter 28 |
| 5% | Potassium Iodate | 28 | 28212000 |
| 5% | Iodine | 280120 | 28012000 |
| 5% | Steam | 28 | Various applications under Chapter 28 |
| 5% | Medical grade oxygen | 2804 40 10 | 28044010 |
| 5% | Nuclear grade sodium | 280511 | 28051100 |
| 5% | Sulphuric acid | 2807 | 28070010, 28070020 |
| 5% | Nitric acid; sulfonitric acids | 2808 | 28080010, 28080020 |
| 5% | Fertilizer grade phosphoric acid | 2809 | 28092010, 28092020 |
| 5% | Ammonia, anhydrous or in aqueous solution | 2814 | 28142000 |
| 5% | Heavy water and other nuclear fuels | 2845 | 28451000, 28459010, 28459090 |
| 5% | Medical grade hydrogen peroxide | 2847 | 28470000 |
| 5% | Compressed air | 2853 | 28530010, 28530020, 28530030, 28530040, 28530091 |
| 5% | Micronutrients, which are covered under serial number 1(g) of Schedule 1, Part (A) of the Fertilizer Control Order, 1985 and are manufactured by the manufacturers which are registered under the Fertilizer Control Order, 1985 | 28 or 38 | Various HSN codes under Chapters 28 and 38 |
| Exempt | Dicalcium phosphate (DCP) of animal feed grade conforming to IS specification No.5470 : 2002 | 2835 | 28351010, 28351020, 28351090, 28352200, 28352400 |
| 18% | All other inorganic chemicals [other than those specified in the Schedule for exempted goods or other Rate Schedules for goods] | 28 | Various HSN codes under Chapter 28 not specifically listed above |
🧪 Strategic GST Structure for Chemical Industries - September 2025:
- Revolutionary Rate Reduction: Most inorganic chemicals moved to 5% GST from higher rates
- Healthcare Industry Support: Medical oxygen, anaesthetics, and medicinal chemicals at affordable 5% rates
- Nuclear Energy Program: Nuclear fuels, heavy water, and related materials at 5% GST supporting energy security
- Agricultural Input Support: Fertilizer-grade acids and micronutrients at low rates benefiting farming sector
- Industrial Manufacturing: Basic acids (sulphuric, nitric) at 5% GST supporting various manufacturing industries
- Pharmaceutical Raw Materials: Essential chemical inputs for drug manufacturing at favorable rates
- Research & Development: Laboratory chemicals and specialized compounds at supportive rates
- Export Competitiveness: Lower input costs boost Indian chemical industry exports globally
- Small-Scale Industry Benefits: Local chemical manufacturers gain significant cost advantages
📋 GST Council Updates - September 2025
The 56th GST Council meeting held on September 3, 2025, under the chairpersonship of Union Finance Minister Smt. Nirmala Sitharaman, announced groundbreaking "Next-Gen GST reforms" effective from September 22, 2025. These reforms introduced a simplified two-tier GST structure (5% and 18%), removing the 12% and 28% slabs to provide significant relief to consumers and businesses.
Key decisions for Chapter 28 include:
- Correction of Inverted Duty Structure in Fertilizer Sector: GST reduced from 18% to 5% on Sulphuric acid, Nitric acid, and Ammonia
- Medical Grade Chemicals: Medical grade oxygen and hydrogen peroxide moved to 5% GST supporting healthcare affordability
- Agricultural Support: Micronutrients for fertilizers moved to 5% GST benefiting farming community
- Nuclear Energy Support: Nuclear fuels and related materials maintained at 5% GST supporting energy security
- Industrial Input Relief: Most inorganic chemicals moved to the favorable 5% GST slab
The reforms align with PM's vision of making GST simpler, fairer, and more growth-oriented while focusing on relief for the common man, farmers, and key economic drivers. The GST Council emphasized that these changes will strengthen India's chemical manufacturing base and boost export competitiveness.
🧪 Expert GST for Chemical & Pharmaceutical Industries
Professional tax consultancy for the revolutionized chemical sector under new GST structure
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.