Official Classification

Under the Harmonized System of Nomenclature (HSN), the code 5302 specifically identifies true hemp (cannabis sativa l), raw or processed but not spun; tow and waste of true hemp (including yarn waste and garneted stock) for the purpose of taxation and trade in Bharat. This ensures uniform classification across all Indian states and Union Territories.

Intra-State Split

CGST 2.5% + SGST 2.5%

Inter-State Split

IGST 5%

Compliance Check-list

✓Mention HSN 5302 on all Tax Invoices for true hemp (cannabis sativa l), raw or processed but not spun; tow and waste of true hemp (including yarn waste and garneted stock)
✓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 5302

"Classifying true hemp (cannabis sativa l), raw or processed but not spun; tow and waste of true hemp (including yarn waste and garneted stock) correctly is critical to avoid litigation. While the base rate is 5%, always check for anti-dumping duties if importing, especially under the Other Fibres category. AasanKhata automatically monitors these shifts for you."