Re: HSN Code 5305 (Coconut Fibre) Nil Rated or Taxable Under the GST

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This query is : Resolved

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There's confusion regarding whether coconut fibre (HSN 5305) is nil-rated or taxable under GST. Official sources and Central Tax Rate Notification No. 2/2017 (Entry 132) indicate it's nil-rated, meaning no GST is applicable. If GST officials state otherwise, politely present the notification and request a written explanation if they persist. Importantly, an e-way bill is still required for consignments exceeding ₹50,000, regardless of taxability.

S.BABU

S.BABU (Querist)
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21 April 2023 Dear Experts,
For the product of coconut fiber and the HSN code 5305 is taxable goods or nil rated goods?
while am searching the GST website and CBIC website, it shows as nil rated goods. but the GST officials said it is taxable goods, so you have to pay the tax.

In this matter what i do? please clarify about my query.

CA SANDESH MAHIPAL

CA SANDESH MAHIPAL (Expert)
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22 April 2023 Sir, although I don't have that much knowledge about this product. But I have gone through various central tax rate notifications searching this product (Coconut Fibre).
One item in Entry No.132 in Notification No.2/2017 Central Tax Rate having HSN 5305 - Coconut, coir fibre found. If your product is same, then it is exempt supply under CGST Act, 2017. You can show this notification to any GST official.

S.BABU

S.BABU (Querist)
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06 May 2023 Hello Sir,
My another question is coconut fiber is exempted goods, then this product consignment dispatch is require e way bill?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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20 July 2025 Under GST, coconut fibre (HSN 5305) is classified as a nil-rated (exempt) supply. This is confirmed by:

Notification No. 2/2017‑Central Tax (Rate) — Entry 132: “5305 – Coconut, coir fibre” is listed under Nil rate
cbic-gst.gov.in
+15
caclubindia.com
+15
enterslice.com
+15
.
Multiple GST references (e.g., HowToExportImport.com, Busy, Referencer) also state 0% GST on coir fibre
gstchennai.gov.in
+2
howtoexportimport.com
+2
referencer.in
+2
.
✅ What Should You Do When Officials Say It’s Taxable?
You can politely inform them:

“As per Notification 2/2017 (Entry 132), HSN 5305 – coconut/coir fibre is classified as nil-rated. No IGST/CGST/SGST is applicable.”
If they still insist, request a written explanation or ask for their policy document - always maintain records in case of future scrutiny.

✅ E‑way Bill Requirement for Exempt Goods
Even for nil-rated goods, an e–way bill is required if the value of the consignment exceeds ₹50,000. The e‑way bill rule is based on value threshold, not on taxability.

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