Adhesives & Glues: 3506 HSN Code and GST Rate Details Introduction For all manufacturers, vendors, distributors and dealers of Adhesives & Glues HSN Code 3506 and GST Rate Adhesives and Glues
Utilizing the appropriate GST rate on Adhesives and Glues under HSN Code 3506 reduces the opportunity to incur a penalty, and have your ITC claims disallowed. By having classification in place, your business will experience fewer operational issues and be protected from the consequences that stem from incorrect tax reporting.
What are Adhesives and Glues Adhesives can be classified into two general categories based on the bonding agents used to bond materials together; the two classifications for adhesives and glues can be found in Chapter 35 of the GST classification guide.
Different Adhesives Types Natural adhesives (made from plant or animal sources) Synthetic adhesives (made from chemical compounds) Rubber-based adhesivesResin-based adhesives Water-based and solvent-based adhesives HSN Code for Adhesives & Glues Chapter 35 also includes adhesives prepared or otherwise classified as bond products, adhesives that are designed to bond two surfaces together and adhesives products that have been prepared for joining agents.
HSN Code 3506: This means that when classified for GST the relevance of the products is not whether they are chemical or physical bond adhesives, but rather their intended use.
What this means: This code covers ready-to-use adhesives Includes both industrial and retail products Applies to small retail packs (under 1-kg) and bulk industrial supplies Covers adhesives not classified under other specific HSN codes According to the HSN code 3506, adhesives & glues can be identified as those ready to use (they are prepared beforehand for use) but may be packaged in either small tubes (for home use) or large containers (industrial use) so they may be sold.
Aspect Details HSN COde 3506 Product Category Prepared adhesives and glues Product Nature Ready to use adhesives Coverage Based on Intended use (not any chemical composition) Retail Applicability Small packs (up tp 1 kg) for household or retails use Industrial applicability Bulk containers for industrial and commercial use
GST Rate on Adhesives & Glues (HSN 3506) This code relates to the tax treatment of adhesives & glues products and allows for the application of a standard GST rate to these products throughout India.
GST Rate Understanding Types of Supply Tax Component GST Rate Intra-State Supply CGST 9% SGST 9% Total 18% Inter-State Supply IGST 18% Compensation Cess – Not Applicable
The above GST tax treatment applies to all sales of adhesives and glues products nationwide, unless the GST Council changes the GST tax treatment of adhesives and glues products by issuing a new notification. The GST tax treatment for these products has been stable since GST was introduced in the country.
Products Covered Under HSN Code 3506 Any adhesives which are in a state of readiness for use and are offered in market for immediate use qualifies an item under HSN code 3506, irrespective of the chemical composition of the adhesives or the application for which it is required.
Some other category of adhesive and glues:
Wood adhesives used in carpentry and manufacturing Adhesives used for bonding leather, used in the making of bags and footwear Adhesives used for bonding metals, used in the construction industry Retail adhesives, including school adhesives, instant adhesives and craft adhesives ForAll these products, regardless of their specific chemical composition or intended use, fall under HSN code 3506 as long as they are prepared adhesives ready for application.
Importance of Correct HSN & GST Classification There are numerous advantages to utilize the accurate HSN code and GST rate in your business. These advantages fall into legal compliance, risk mitigation and operational efficiencies.
Legal Compliance: Accurate HSN Code on your tax invoices ensure that your business’s tax invoices are validly issued and demonstrate professionalism as part of the due diligence process.Mitigating RISK: Through inaccurate HSN classification, you may receive notices from the GST department an incorrect GST classification resulting in possible penalties equal to 100% of tax amount payable plus interest charges from a timeline of non-payment of taxes.Operational Efficiency : When you use the correct classification of the HSN code for your business within the GST return filing and HSN code for your annual return and without error. ITC Proper matching of HSN codes between your purchase and sale will permit you to claim Input Tax Credit without any issues.Tax Dispute: By ensuring your classification of HSN codes are accurate, you will lower possibilities of dispute arising out of an audit or inquiry conducted by a GST Department representative.Some Extra Points FOr Importers: When importing adhesives, you need to pay
Basic customs duty (as per import policy) IGST at 18% Social welfare surcharge if applicable For Exporters: Exports are zero-rated under GST. You can export adhesives without paying GST and claim refund of Input Tax Credit on purchase.
Conclusion All types of adhesives or glue are included in HSN code 3506 and are subject to the standard GST rate in India on a uniform basis. It will be essential that you classify your adhesive products appropriately , whether you are supplying them for industrial or construction use or for sale to customers through a stationary store, to be GST compliant and run your business efficiently.
All adhesives products are subject to 18% GST when sold at retail as either a small glue & adhesives stick to a stationary store or a large glue & adhesives container to a customer. All sales are subject to either CGST + SGST of IGST taxes .
FAQs What are the adhesives and glues HSN COde? The adhesives and glues come under HSN code 3506 and also their retail and industrial products
What is the adhesives and glues GST rate to be paid? 18% GST rate is applicable on adhesives and glues of HSN 3506 products in India.
Will all retail and industrial adhesive products around India be charged the same rate of 18%? Yes, both industrial (large construction adhesive containers) and retail (small glue sticks) will be treated the same for GST purposes and taxed at the same rate of 18%.
Is GST applicable on any interstate sale of adhesives? Yes, when sold and delivered to a customer in another state, the seller will pay IGST 18% on the sale of all adhesives products.
Is an e-way bill required when shipping adhesive products? Yes, an e-way bill must be generated prior to shipping all adhesive products when the total value of the consignment is more than ₹50,000.
Can I collect input tax credit for my purchase of adhesive products? Yes, input tax credit may be claimed by any registered GST taxpayer who uses adhesives in connection with their business
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