HSN Code for Oil in India: Edible, Crude & Essential Oils
The HSN code for oil in India depends on the type of oil. Edible oils like mustard, sunflower, and coconut fall under Chapter 15 (headings 1507 to 1515) of the Customs Tariff Act, 1975. Crude petroleum oil is classified under Chapter 27 (heading 2709), and essential oils under Chapter 33 (heading 3301). GST rates range from 5% on most edible oils to 18% on essential oils. The table below covers exact headings, BCD rates, and IGST rates for the most commonly traded oil types.
What is the HSN code for edible oil in India?
All edible oils in India are classified under Chapter 15 of the Customs Tariff Act, 1975, which covers animal and vegetable fats and oils. Each oil type has its own 4-digit heading, and the crude versus refined distinction is made at the 6-digit or 8-digit level.
Here are the key headings:
- 1507 - Soybean oil
- 1508 - Groundnut (peanut) oil
- 1511 - Palm oil
- 1512 - Sunflower and safflower oil
- 1513 - Coconut and palm kernel oil
- 1514 - Mustard oil and rapeseed oil
- 1515 - Other fixed vegetable fats and oils (linseed, castor, sesame, etc.)
The distinction between crude and refined matters for both customs duty and GST. Crude oils (first press, unrefined) get a lower BCD rate than their refined counterparts. For example, crude mustard oil (HSN 1514 91) carries a Basic Customs Duty of 35%, while refined mustard oil (HSN 1514 99) attracts 45% BCD, as per the CBIC Customs Tariff Schedule on taxinformation.cbic.gov.in.
GST on edible oils is simple: all edible oils under Chapter 15 attract 5% GST, whether crude or refined. This applies to mustard oil, sunflower oil, groundnut oil, soybean oil, coconut oil, palm oil, and all other Chapter 15 oils.
For importers, the total landed cost calculation involves ```
BCD + Social Welfare Surcharge (10% of BCD) + IGST (5% for edible oils)
```. Getting the crude vs. refined classification wrong can mean a 10-percentage-point duty difference on mustard oil alone.
A common confusion arises with coconut oil. When sold as edible oil in food-grade packaging, coconut oil falls under Chapter 15 (HSN 1513). But the same coconut oil, if marketed as hair oil in retail packs, gets reclassified under Chapter 33 and attracts 18% GST instead of 5%. The Supreme Court has upheld this distinction in multiple cases, so the end-use and marketing of the product drive the classification, not just the product itself.
If you handle food commodity imports, the classification logic is similar to how spices are classified under Chapter 9. Different processing levels (whole vs. ground vs. mixed) change the heading, just as crude vs. refined changes the heading for oils.
How are crude and petroleum oils classified under HSN?
Petroleum oils and mineral oils fall under Chapter 27, which covers mineral fuels, mineral oils, and products of their distillation. This is a completely different chapter from the edible oils in Chapter 15, and the classification depends on whether the oil is of biological or mineral origin.
The key headings under Chapter 27:
- 2709 - Crude petroleum oil and crude oils obtained from bituminous minerals
- 2710 - Petroleum oils other than crude (this includes petrol, diesel, kerosene, aviation turbine fuel, lubricating oils, and other refined petroleum products)
- 2711 - Petroleum gases (LPG, natural gas)
- 2712 - Petroleum jelly, paraffin wax
Petroleum products are largely outside the GST regime. Crude oil (2709), petrol, diesel, natural gas, and aviation turbine fuel remain subject to central excise duty and state VAT/sales tax rather than GST. This is a frequent source of confusion for businesses that deal with both edible oils and petroleum products.
For customs purposes, crude petroleum (2709 00) currently carries a nil BCD rate for most categories of crude, though cess and surcharges apply separately. Refined petroleum products under 2710 have varying duty structures depending on the specific product.
One common misclassification: petroleum jelly. It falls under 2712 (Chapter 27), not under Chapter 33 (cosmetics/essential oils), even though it is widely used in cosmetic products. The origin of the product (mineral, not biological) determines the chapter.
| Oil Type | HSN Code | BCD Rate | IGST/GST Rate | Notes |
|---|---|---|---|---|
| Crude palm oil | 1511 10 | 27.5% | 5% | Sep 2024 duty hike from 12.5% |
| Refined palm oil | 1511 90 | 35% | 5% | Sep 2024 duty hike from 17.5% |
| Crude soybean oil | 1507 10 | 27.5% | 5% | Sep 2024 duty hike from 12.5% |
| Crude mustard oil | 1514 91 | 35% | 5% | Not affected by Sep 2024 hike |
| Refined mustard oil | 1514 99 | 45% | 5% | Not affected by Sep 2024 hike |
| Crude sunflower oil | 1512 11 | 27.5% | 5% | Sep 2024 duty hike from 12.5% |
| Coconut oil, crude | 1513 11 | 35% | 5% | - |
| Olive oil | 1509 | 35% | 5% | Includes virgin and extra virgin |
| Crude petroleum | 2709 00 | Nil | Outside GST | Cess applies separately |
| Castor oil | 1515 30 | 30% | 5% | - |
| Essential oils | 3301 | 30% | 18% | See Chapter 33 section below |
Source: CBIC Customs Tariff Schedule 2025-26 via taxinformation.cbic.gov.in. BCD rates are effective rates as of March 2026. Verify current rates before filing.
A note on the September 2024 edible oil duty revision: the government raised BCD on crude palm oil, crude soybean oil, and crude sunflower oil from 12.5% to 27.5%, and on their refined variants from 17.5% to 35%. This did not affect mustard oil, coconut oil, or olive oil, which retained their pre-existing duty rates. If you import palm, soy, or sunflower oil, check the effective duty notification before filing your Bill of Entry (BoE).
What is the HSN code for essential oils and perfumery oils?
Essential oils are classified under Chapter 33, heading 3301 of the Customs Tariff. This chapter covers essential oils, resinoids, perfumery, cosmetic, and toilet preparations.
Key sub-headings under 3301:
- 3301 12 - Orange oil
- 3301 13 - Lemon oil
- 3301 19 - Other citrus fruit oils
- 3301 24 - Peppermint oil
- 3301 25 - Other mint oils (spearmint, etc.)
- 3301 29 - Other essential oils (lavender, eucalyptus, tea tree, etc.)
- 3301 30 - Resinoids
The GST rate on essential oils under heading 3301 is 18%, compared to just 5% on edible oils. BCD is typically 30% on most essential oils.
The most common classification trap here involves products that sit between Chapter 15 and Chapter 33. Coconut oil is the most frequent example. If an importer brings in coconut oil in bulk for food processing, it goes under 1513 (Chapter 15, 5% GST). If the same coconut oil is packaged in 100ml bottles and labelled as hair oil, it moves to Chapter 33 (18% GST). The product is chemically identical. The classification depends on how it is presented and marketed.
Other products that cause confusion:
- Mentholated oil: If it contains menthol crystals dissolved in a carrier oil, it is classified under Chapter 33, not Chapter 15
- Camphor oil: Falls under 2914 (Chapter 29, organic chemicals) if it is synthetic camphor, or under 3301 if it is natural camphor oil
- Turpentine oil: Classified under Chapter 38 (miscellaneous chemical products), not Chapter 33, despite being a volatile oil
If you import essential oils alongside edible oils, getting the chapter wrong has a cascading effect. Wrong chapter means wrong duty rate, wrong GST rate, and possibly wrong regulatory requirements (FSSAI for Chapter 15, drug/BIS regulations for Chapter 33 products).
What are common HSN misclassification errors for oils?
Oil classification errors are among the most frequent customs disputes in India. Here are the ones that show up repeatedly in assessment and adjudication proceedings.
1. Coconut oil: Chapter 15 vs. Chapter 33
This is the most litigated oil classification issue in Indian customs. The Supreme Court has ruled that coconut oil sold as hair oil in retail packs (typically under 1 litre) falls under Chapter 33, not Chapter 15. The difference is real: 5% GST under Chapter 15 vs. 18% under Chapter 33. If your shipment contains coconut oil, the packaging, labelling, and declared end-use must align with the chapter you classify it under.
2. Blended oils: which heading applies?
Blended edible oils are classified based on the oil that gives the blend its essential character, following GRI Rule 3(b). A blend of 70% sunflower and 30% olive oil goes under heading 1512 (sunflower). If no single oil dominates the blend, GRI Rule 3(c) applies, and the heading that comes last numerically is used. Getting this wrong means the wrong BCD rate, which can trigger a BoE amendment and re-assessment.
3. Used or waste cooking oil
Used cooking oil and waste oil do not go under the standard Chapter 15 headings for fresh oils. They are classified under HSN 1522 (degras, residues from treatment of fatty substances). Mis-declaring waste cooking oil under a fresh oil heading can trigger questions from customs about undervaluation, since waste oil trades at a fraction of the price of fresh oil.
4. Petroleum jelly under the wrong chapter
Petroleum jelly (Vaseline-type products) belongs under 2712 (Chapter 27), not Chapter 33, even though it is found in every cosmetics aisle. Classifying it under Chapter 33 changes the duty structure and can lead to assessment disputes.
5. Turpentine oil under Chapter 33
Turpentine oil is frequently mis-classified under Chapter 33 (essential oils) because it is a volatile, aromatic oil. The correct classification is Chapter 38 (heading 3805 for gum, wood, or sulphate turpentine oils). This is a specific legal note exclusion, and customs officers will catch it.
These errors are avoidable if you verify the classification against the CBIC tariff before filing. For high-volume oil importers handling multiple oil types per month, even one misclassification across a batch of shipments adds up quickly in duty differential and amendment costs.
Similar classification traps exist in other commodity groups. For instance, cement classification has its own set of common errors around clinker vs. finished cement headings.
Frequently Asked Questions
What is the HSN code for mustard oil in India?
Mustard oil falls under HSN heading 1514. Crude mustard oil is classified as 1514 91, and refined mustard oil as 1514 99 under the Customs Tariff Act, 1975. GST is 5% on both variants. For imports, Basic Customs Duty is 35% on crude mustard oil and 45% on refined mustard oil, as per the CBIC Customs Tariff.
What is the HSN code for coconut oil?
Coconut oil is classified under HSN 1513. Crude coconut oil is 1513 11, and refined coconut oil is 1513 19. GST is 5% when sold as edible oil. However, coconut oil marketed and packaged as hair oil in retail packs (typically under 1 litre) falls under Chapter 33 instead of Chapter 15, and attracts 18% GST. The end-use and packaging determine the classification.
What GST rate applies to edible oil in India?
All edible oils under Chapter 15, including mustard oil, sunflower oil, groundnut oil, soybean oil, coconut oil, and palm oil, attract 5% GST. If an oil is repackaged or marketed as a cosmetic or medicinal product, it falls under a different chapter (typically Chapter 33) and may attract 12% or 18% GST. Check the GST Rate Schedule on cbic-gst.gov.in for the current list.
What is the difference between HSN Chapter 15 and Chapter 27 for oils?
Chapter 15 covers animal and vegetable fats and oils, which includes all edible cooking oils, industrial vegetable oils, and animal fats like lard and tallow. Chapter 27 covers mineral fuels and petroleum oils, including crude oil (2709), refined petroleum products like diesel and kerosene (2710), and petroleum jelly (2712). The classification depends entirely on the origin: biological origin goes to Chapter 15, mineral origin goes to Chapter 27.
How do I classify blended oils for customs purposes?
Blended edible oils are classified based on the oil that gives the blend its essential character under GRI Rule 3(b). For example, a blend of 70% sunflower oil and 30% olive oil would be classified under heading 1512 (sunflower oil). If no single oil dominates the blend, the heading that comes last numerically applies under GRI Rule 3(c). Always document the composition of blended oil shipments, as customs may request test reports to verify the declared blend ratio.
Getting oil classification right across Chapters 15, 27, and 33 is tricky when you handle multiple oil types in the same shipment cycle. Eximoz auto-classifies oil shipments to the correct chapter and heading, flags crude vs. refined duty differences before filing, and catches chapter-boundary errors like the coconut oil hair oil trap. If your team processes bulk oil imports, take a look at eximoz.com.