Nickel mattes: GST rate & HSN code simplified One wrong HSN code. That’s all it takes to lose your ITC claim , trigger a compliance notice, or fail a GST audit.
Nickel mattes and their intermediates fall under HSN Code 7501 at a flat 18% GST, but the real trouble starts when businesses pick the wrong sub-code, or worse, land in the wrong chapter entirely. Here’s what we’re covering:
What nickel mattes are and which sub-codes (75011000 or 75012000) actually apply to you.
What 18% GST looks like in practice, domestic, imports, exports, all of it.
How to not mess up your ITC claim with a classification error you didn’t see coming.
What are nickel mattes? Nickel mattes are intermediate sulfide products, mostly molten nickel, iron, and copper sulfides with a nickel content that typically runs between 30-60%, or above 70% in high-grade matte. That concentration is what makes them valuable. They feed directly into the production of nickel cathodes, EV batteries, and stainless steel.
They’re not finished metal.
The production chain looks like this:
Nickel ore → Nickel matte → Refined nickel
Simple. But here’s where businesses slip up, not everything under HSN 7501 is a nickel matte.
HSN 7501 covers two distinct products: 75011000 : Nickel matte: The sulfide-rich intermediate produced directly from smelting nickel ore
75012000 : Nickel oxide sinters go through a different process entirely, oxidation or sintering rather than smelting.
Both codes fall under heading 7501, Chapter 75. One’s smelted, one’s sintered. Same tax rate, different product, different code on your invoice.
Both also attract the same 18% GST rate. But they are not interchangeable on your invoice; using the wrong sub-code is a classification error that can come back to bite you during scrutiny.
If you’re dealing in Nickel mattes specifically, 75011000 is your code.
HSN code for nickel mattes: full breakdown Here’s the complete picture at a glance:
HSN Code Description GST Rate 7501 Nickel mattes, nickel oxide sinters, and other intermediate products of nickel metallurgy 18% 75011000 Nickel mattes 18% 75012000 Nickel oxide sinters and other intermediate products of nickel metallurgy 18%
7501 is the heading. It tells you the category, not the product. Your invoice needs more precision than that.
If your turnover crosses ₹5 crore, the full 8-digit code is mandatory: 75011000 or 75012000, depending on what you’re actually selling. No rounding up to the parent heading.
Both codes fall under Chapter 75: Nickel and articles thereof, regulated by the Ministry of Mines. That chapter distinction matters. If your product accidentally gets filed under Chapter 74 (copper), you’re in the wrong place entirely, and your ITC claim could take the hit.
GST rate on nickel mattes: CGST, SGST & IGST The rate is straightforward. 18% GST applies across all products under HSN 7501, no exceptions, no cess.
But how that 18% splits depends on the nature of your transaction:
Transaction Type CGST SGST IGST Intra-state supply 9% 9% — Inter-state supply — — 18% Imports — — 18%
For imports, the 18% IGST hits at customs clearance, your goods haven’t even left the port yet. The rate itself hasn’t budged since 1st July 2017, last locked in under GST rate notification no. 05/2020 (16 October 2020). It hasn’t moved since.
One more thing flagging: zero cess applies here. What you see is what you pay.
Domestic supply vs imports: what changes? The GST rate stays at 18% regardless. But where and how it applies shifts depending on what you’re doing.
For domestic supply, it’s straightforward:
Selling within the same state? 9% CGST + 9% SGST
Selling across state lines? 18% IGST
For imports, the mechanics are different. The 18% IGST is levied at the point of customs clearance, not at the point of sale. On top of that, Basic Customs Duty (BCD) may apply separately. BCD rates vary and are not fixed under GST. Check the CBIC website for the exact applicable rate on nickel mattes before filing.
For exports, the picture gets more favourable. Nickel mattes exported under a letter of undertaking (LUT) qualify as a zero-rated supply, meaning no GST is charged at the point of export. Exporters can then claim a refund on accumulated ITC, recovering the tax paid on inputs.
That’s a meaningful cash flow advantage. Don’t leave it on the table.
ITC eligibility on nickel mattes Here’s something none of the top-ranking articles will tell you: You can claim input tax credit on the 18% GST paid when purchasing nickel mattes.
If you’re buying nickel mattes for further manufacturing, nickel refining, alloy production, or any downstream industrial process, the GST paid upstream doesn’t have to be a sunk cost. You can offset it against your output tax liability.
But ITC isn’t automatic. Three conditions need to be met:
Your supplier has filed their GST, and the invoice reflects in your GSTR-2B.
The invoice carries the correct HSN code: 75011000 for nickel mattes, 75012000 for nickel oxide sinters.
The purchase is for business use: personal consumption doesn’t qualify.
That second point is where it gets critical. A wrong HSN code on your purchase invoice isn’t just a supplier problem. It becomes your problem when ITC gets rejected during reconciliation.
Get the code right at the source. It’s the cleanest way to protect your credit.
How to use the HSN code 7501 on invoices Knowing the code is half the battle. Using it correctly is the other half.
Here’s exactly what the GST law requires based on your turnover:
Annual Turnover HSN Digits Required Up to ₹1.5 crore Optional ₹1.5 crore - ₹ 5 crore 4-digit (7501) Above ₹5 crore 8-digit (75011000 or 75012000)
If you’re dealing in nickel mattes and your turnover clears ₹5 crore, 75011000 is what goes on the invoice, not the parent heading 7501.
And it doesn’t stop at the invoice. Your HSN code also needs to be reported accurately in the HSN Summary section of GSTR-1 . Most errors don’t happen at the GST portal . They happen on the invoice, weeks before filing.
Before you submit, run through this:
8-digit code on the invoice: non-negotiable once you cross ₹5 crore in turnover
75011000 or 75012000: not just 7501
HSN Summary filled accurately in GSTR-1
The invoice matches what your supplier has declared
Get any of these wrong, and you’re looking at an ITC mismatch, a reconciliation headache, or worse, a scrutiny notice.
Common classification errors to avoid Most GST errors on nickel mattes aren’t random. They follow a pattern. Three errors come up again and again:
1. Chapter 74 vs Chapter 75 Nickel-copper alloys sit in a grey zone. Depending on composition, some businesses mistakenly file under Chapter 74 (Copper and articles thereof) instead of Chapter 75 (Nickel and articles thereof). If nickel is the primary metal, Chapter 75 is where you belong, full stop.
2. Using 7501 instead of the 8-digit code
7501 on an invoice isn’t enough. It’s heading, not a product code. Use it alone, and you’re asking for a mismatch when GSTR-1 reconciliation runs.
3. Confusing nickel mattes with unwrought nickel
HSN 7501 covers intermediate products that haven’t completed the refining process. HSN 7502 covers unwrought nickel, the refined output. Different stage, different code. Mixing these two up is more common than it should be.
Pro tip: Before filing, cross-check your classification against the CBIC HSN master list at cbic.gov.in. It takes two minutes and can save you a notice.
Conclusion You now have everything you need to classify nickel mattes correctly and file without second-guessing yourself.
HSN 7501 is your parenting heading: use 75011000 for nickel mattes and 75012000 for nickel oxide sinters on every invoice.
The GST rate is 18% flat: split as 9% CGST + 9% SGST intra-state, or 18% IGST for inter-state and imports. Zero cess.
Registered businesses purchasing nickel mattes for manufacturing can claim full ITC but only if the HSN code on the invoice is correct.
Rates can change. Always verify the latest notifications on the CBIC website before filing
GST compliance gets a lot less painful when your invoicing does the heavy lifting. Swipe auto-fills HSN codes, calculates GST split, and keeps your invoices audit-ready, so the only thing you’re filing is on time.
FAQs 1. What is the HSN code for nickel mattes? 75011000. That’s the one that goes on your invoice. The parent heading is 7501, useful to know, but too broad to use on its own for filing purposes.
2. Chapter 74 or chapter 75: which one applies? Chapter 75. Chapter 74 is copper. The confusion usually crops up with nickel-copper alloys, but if nickel is the dominant metal, you’re in Chapter 75 territory
3. Can i claim ITC on nickel matte purchases? Yes. If it's for business or manufacturing use. Your supplier needs to have filed their GSTR-1, and the invoice has to show the right HSN code. Miss either of those and the itc claim won’t hold up.
4. What about imports does the 18% still apply to? Yes, but it hits at customs clearance, not a point of sale. Basic Customs Duty may also stack on top. The CBIC website has the exact rates. Exporting instead? File under LUT, pay zero GST, and claim back your ITC.
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