Biodiesel Blend HSN Classification Ruling Issued in India
The ruling clarifies the Harmonised System of Nomenclature (HSN) classification for biodiesel blends B20 through B70. This determination impacts taxation and compliance within the biodiesel industry, particularly for manufacturers blending biodiesel with High-Speed Diesel (HSD).
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M11 Energy Transition Pvt Ltd sought an advance ruling on the GST classification of biodiesel blends B20, B30, B40, B50, B60, and B70. The Authority classified B20 (20% biodiesel, 80% HSD) under tariff item 27102020 as a diesel fuel blend, while B30 was classified under 27102090.
Blends B40 through B70, containing less than 70% petroleum oils, were classified under Heading 3826, specifically tariff item 38260000. This ruling aligns with the Customs Tariff Act and the National Policy on Biofuels, encouraging sustainable energy practices and waste reduction. The clarification is significant for biodiesel manufacturers regarding GST liability and product classification.
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