Re: HSN Code 5305 (Coconut Fibre) Nil Rated or Taxable Under the GST
This query is : Resolved
Quick Summary
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.
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.
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.
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.
06 May 2023
Hello Sir,
My another question is coconut fiber is exempted goods, then this product consignment dispatch is require e way bill?
My another question is coconut fiber is exempted goods, then this product consignment dispatch is require e way bill?
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.
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Taxable or Tax exempt
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- TDS Deducted AY-2013-14 Not Reflected in 26as
- ADVANCE PAYMENT OF ADVOCATE
- NRI starting business in India
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- CREDIT NOTES WITHOUT GST
- Eway bill generation from place other than registeted
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
