GST Rates and HSN Code 3507 for Prepared Enzymes If you deal with enzyme business across any sector, be it pharmaceuticals, food processing or industrial related applications, being aware of GST Rates and HSN Code 3507 for Prepared Enzymes is actually more important than most people realize to keep your business protected. Charging the right GST rate helps you stay compliant, generate accurate invoices while also helps you avoid unnecessary notices from tax authorities. Prepared enzymes are widely used in medicines, food processing, detergents, and other industrial based products. Even a small mistake in classification can lead to wrong GST charges or issues later on during filing returns.
In this guide, we’ll break down what HSN Code 3507 includes, the applicable GST rates, ITC rules, and filing tips for businesses in simple and an easy way, so your business stays compliant and stress free.
What Are Prepared Enzymes? These substances come from living sources that increase the speed of chemical reactions. They are processed for specific industrial or commercial use, unlike raw enzyme extracts which are not directly usable.
Common applications include:
Food and beverage processing such as dairy, baking, brewing
Pharmaceutical products
Detergent manufacturing
Industrial bio-processing
Since enzymes are specialized products, they are classified under HSN Code 3507 for GST, to ensure correct tax is applied.
Why HSN Code 3507 Matters Applying the correct HSN code is crucial and you also ensure:
Accurate GST calculation on invoices
Correct reporting in your GSTR-1 & GSTR-3B
Proper Input Tax Credit / ITC claims
Avoidance of tax notices or compliance issues
HSN Code 3507 includes prepared enzymes such as powders, concentrates, and liquid forms that are ready to be used for industrial or commercial purposes.
GST Rates on Prepared Enzymes Prepared enzymes under HSN 3507 generally attract 18% GST, which is standard for industrial chemicals. For more information on GST rates and classification based on HSN codes you can visit the official GST Council site.
Here is a detailed table of prepared enzymes for your easy reference:
Type of Prepared Enzyme HSN Code Description GST Rate ITC Availability Food-grade enzymes 3507 Enzymes for food processing 18% Available Pharmaceutical enzymes 3507 Enzymes used in medicines 18% Available Industrial enzymes 3507 Enzymes for detergents or bio processing 18% Available Other prepared enzymes 3507 Miscellaneous processed enzymes 18% Available
Note: ITC is generally available on purchased prepared enzymes if used for taxable supplies. Exempt supplies may restrict full ITC claims.
Swipe E-invoice software helps with generating GST compliant invoices by reducing manual errors.
How GST on Prepared Enzymes Works Sale of Prepared Enzymes – 18% GST
Any business selling prepared enzymes must charge 18% GST while generating an invoice.
Example: For instance, you are selling 10 kg of food grade enzyme at ₹50000
18% GST = ₹9000
Final Invoice total = ₹59000
Raw Enzyme Inputs – 18% GST
Chemicals or raw enzymes purchased for preparing enzymes also attract GST at 18%. ITC can be claimed if the final product is taxable.
Export of Prepared Enzymes
Exports can be zero-rated under LUT ( without GST payment) or with GST payment and refund claim. HSN Code 3507 must be mentioned in export documents.
GST Filing Tips for Businesses Some simple practices make GST filing smoother:
Always use HSN Code 3507 for prepared enzymes
Charge 18% GST on final sale
Keep separate invoices for different types of enzymes
Reconcile ITC regularly in GSTR-2B
Maintain proper records for exports & domestic sales
Common Mistakes to Avoid for Businesses Even experienced businesses make mistakes which can be avoided easily. Here are some of the simple yet common mistakes to look out for:
Using a generic chemical HSN instead of 3507
Charging incorrect GST rates (like 5% or 12%)
Claiming ITC on exempt products
Mixing enzyme types in one invoice
Following the right classification prevents errors, blocked ITC, and compliance notices.
GST Returns You Need to File If you are GST registered, you may need to file:
GSTR-1 for Sales details, it can be filed monthly or quarterly
GSTR-3B for Monthly tax summary return
Annual return, if applicable
Always make sure:
HSN summary is correct
GST rate matches invoices
ITC is claimed properly
Regular reconciliation keeps your books clean and avoids future notices.
How Accounting Software Can Help Managing GST manually can be time consuming especially when dealing with HSN codes and multiple enzyme types. Accounting software can help you:
Automatically assign HSN 3507 to prepared enzymes
Apply 18% GST correctly on all invoices
Track ITC and reconcile GSTR-2B automatically
Generate GST ready invoices in seconds
Makes GST return filing easy, monthly or quarterly
Swipe accounting software saves time, reduces errors & lets you focus more towards growing your business instead of worrying about manual work or complex tax calculations.
Try Swipe for free and generate GST-compliant invoices for your enzyme business – Get Started Now
Quick Summary - GST Rates and HSN Code 3507 for Prepared Enzymes Here is the quick summary for prepared enzymes:
HSN Code: 3507
GST Rate: 18%
Applicable to: Food, pharmaceutical, industrial, and other prepared enzymes
ITC: Available if used for taxable supplies
Exports: Zero-rated under LUT or with GST refund claim
Conclusion Correctly applying GST rates and HSN Codes 3507 for prepared enzymes ensures:
Accurate invoicing
Proper ITC claims
Smooth GST filing
Avoidance of penalties
GST compliance doesn’t have to be complicated. With the right classification, records, and accounting tools, you can manage your enzyme business efficiently while staying fully compliant.
Simplify GST for your enzyme business with Swipe – Sign Up For Free
FAQs 1. What is HSN Code 3507? HSN Code 3507 is used for prepared enzymes. It does not matter in which form an enzyme is even if it is powder, liquid, or concentrate - all prepared enzymes used in different industries fall under HSN Code 3507.
2. What GST rate applies to prepared enzymes? Prepared enzymes under HSN 3507 are charged at 18% GST.
3. Can ITC be claimed on prepared enzymes? Yes, ITC is available if the enzymes are used for taxable supplies. Exempt supplies may limit ITC claims.
4. How should exports of prepared enzymes be treated? Exports can be zero-rated under LUT (without paying GST) or exported with GST and claiming a refund. HSN Code 3507 must appear in export documents.
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