A distributor asks for a landed rate on 20 tonnes of sesame. Straightforward — until the invoice arrives and the tax line reads 5% against a purchase manager who had budgeted nil, and the whole margin calculation reopens three days before dispatch. The code wasn’t wrong. The description sitting next to it was.
The seven line items you’ll actually invoice
| Commodity & grade | Heading | Tariff item | GST |
|---|---|---|---|
| Sesame — sowing stock | 1207 | 1207.40.10 | Nil |
| Sesame — oil / food grade | 1207 | 1207.40.90 | 5% |
| Mustard — sowing stock | 1207 | 1207.50.10 | Nil |
| Mustard — crushing grade | 1207 | 1207.50.90 | 5% |
| Coriander — whole, spice grade | 0909 | 0909.21.90 | 5% |
| Coriander — split or ground | 0909 | 0909.22.00 | 5% |
| Jute — raw or retted | 5303 | 5303.10.10 | Nil |
Rates reflect the two-slab structure effective 22 September 2025. Anything borderline should be checked against the CBIC rate schedule before filing.
The HSN code and GST rate for seeds hinge on stated use
Look at the pattern. Sesame and mustard both sit under heading 1207, and each splits into two tariff items separated by exactly one thing — whether the lot is of seed quality, meaning genuinely intended for sowing. Sowing stock is exempt. Anything bound for a crusher, a spice mill or a food processor carries 5%.
One word on a description. Fifty thousand rupees a crore.
Same commodity, same heading, same warehouse — different declared end use.
Coriander follows the same logic on paper, but in practice almost nothing moving under heading 0909 in bulk qualifies as sowing stock. Spice-grade wholesale coriander lots are taxable at 5%, and the Spices Board of India publishes the grade definitions that back that classification up.
Raw jute breaks the pattern entirely
Jute is exempt outright — not conditionally, not by end use. Raw or retted fibre under 5303.10 carries nil GST, which is why bale-level jute pricing quotes clean without a tax line at all. Spin it into yarn or weave it into cloth and you have left heading 5303, and the exemption leaves with you.
What belongs on the paperwork
- Use the full 8-digit tariff item on B2B invoices, not the 4-digit heading.
- State end use in the description — “sesame seed, oil extraction grade” closes the argument before it starts.
- One HSN per invoice line. Mixed lines are where audit queries begin.
- Keep the grading or lab certificate. It is your evidence for whichever rate you applied.
Questions buyers ask us
Can I claim nil GST on sesame by writing “seed quality” on the invoice?
No. The exemption covers goods that genuinely are sowing stock — certified, packed and sold as such. Describing crushing-grade seed as sowing stock to avoid 5% is misclassification, and the liability lands on the supplier.
Does pre-packaging change the 5% rate on oil seeds?
Under heading 1207, no. The seed-quality test governs. Packaging rules bite harder in other food chapters, so read the specific heading rather than carrying the assumption across.
Is input tax credit available if I trade both jute and seed?
Not on the exempt portion. Credit has to be apportioned across taxable and exempt supply. Flag the mixed supply to your accountant early — not in March.
Chasing the nil rate is a bad trade
Every season someone books crushing-grade mustard as sowing stock to save 5%, and every season a few of them receive a notice. The saving is ₹50,000 per crore of turnover. The exposure is interest, penalty, and a classification history that follows the GSTIN for years.
Classify honestly, describe precisely, let the rate fall where it falls. We publish the HSN code against every item in the Sain Agro catalogue — including sesame — so that your finance team and ours are reading the same line before the PO is cut.
References & further reading
- CBIC — GST Goods & Services Rate Schedules (authoritative rate source)
- Ministry of Agriculture & Farmers Welfare (crop and grading standards)
- Spices Board of India (coriander grade specifications)
- ICAR (seed-quality and certification research)