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Verified Category: Tobacco

HSN Code 2403

Other manufactured tobacco and manufactured tobacco substitutes; homogenised or reconstituted tobacco; tobacco extracts and essences

Current GST Rate
40%
Verified ✓
Rate noteRate varies within this heading — 18%: Biris; 40%: Other manufactured tobacco and manufactured tobacco…

Official Classification

Under the Harmonized System of Nomenclature (HSN), the code 2403 specifically identifies other manufactured tobacco and manufactured tobacco substitutes; homogenised or reconstituted tobacco; tobacco extracts and essences for the purpose of taxation and trade in Bharat. This ensures uniform classification across all Indian states and Union Territories.

Intra-State Split
CGST 20% + SGST 20%
Inter-State Split
IGST 40%

Compliance Check-list

  • Mention HSN 2403 on all Tax Invoices for other manufactured tobacco and manufactured tobacco substitutes; homogenised or reconstituted tobacco; tobacco extracts and essences
  • Include in HSN-wise summary of GSTR-1 filings
  • Mandatory for E-way bill generation for goods above threshold
  • Ensure Input Tax Credit (ITC) matches this classification
✨ AI Compliance Insight

Expert Advice for 2403

"Classifying other manufactured tobacco and manufactured tobacco substitutes; homogenised or reconstituted tobacco; tobacco extracts and essences correctly is critical to avoid litigation. While the base rate is 40%, always check for anti-dumping duties if importing, especially under the Tobacco category. AasanKhata automatically monitors these shifts for you."