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How to Find Correct HSN Code and GST Rate For Paint

How to Find Correct HSN Code and GST Rate For Paint

The correct categorization of products is a must for Indian taxation and billing purposes. Proper use of the paint HSN code guarantees error-free GST compliance, accurate tax computations, and penalty-free processes, particularly for coatings and paint companies.

An internationally accepted method of product classification is the Harmonized System of Nomenclature (HSN). Using HSN codes on invoices is a requirement under GST legislation in India for organizations with a revenue above a particular level.

Always use the correct paint HSN code while dealing with paints, whether you’re a manufacturer, trader, or distributor. See all you need to know. 

What is the HSN Code and Why Is It Important for Paints?

HSN codes are standardized numerical codes used to classify goods systematically across different countries. They help in identifying products easily, regulating international trade, and simplifying taxation processes like GST.

For paints, a correct HSN classification means:

  • Accurate GST rate application
  • Easier customs clearance (for imports/exports)
  • Proper filing of GSTR-1, GSTR-3B returns
  • Avoiding legal notices from tax departments

Incorrect usage of the paint HSN code can result in fines, back taxes, and unnecessary audits. Therefore, businesses dealing in paints must be very careful about using the appropriate HSN number on all invoices.

Standard Classifications for Paint HSN Codes

Here’s a breakdown of commonly used paint HSN codes based on different types of paint products.

Product TypeHSN CodeGST Rate (as of 2024-25)
Paints and varnishes (based on synthetic polymers)320818%
Paints and varnishes (based on acrylic or vinyl polymers)320918%
Pigments and dispersions used in paints321218%
Prepared driers (used in paint drying)321118%
Printing ink, writing/drawing ink (for paints, artistic use)321518%

Paint Classifications Defined by HSN Code

1. Synthetic Polymer-Based Paints (HSN 3208)

This includes paints that are prepared with synthetic resins like alkyd resins or epoxy. They are often used for protective coatings on metal, wood, and industrial surfaces.

Example Products: Oil-based paints, Protective epoxy paints, Synthetic enamels

Apply paint HSN code 3208 when invoicing these products.

2. Acrylic and Vinyl Polymer-Based Paints (HSN 3209)

These are water-based paints used widely for both interiors and exteriors. Acrylic emulsion paints, distempers, and washable wall coatings fall under this category.

Example Products: Acrylic emulsion paints (interior/exterior), Vinyl-based wall coatings

Use paint HSN code 3209 when trading or manufacturing these types of paints.

3. Pigments and Color Dispersions (HSN 3212)

Pigments mixed into paint bases for custom shades or color intensities are classified under this code. These are not standalone paints but are used by paint manufacturers or professional applicators.

Example Products: Titanium dioxide pigments, Organic pigment dispersions

Invoice these under paint HSN code 3212.

Also Read This: Top Dry Fruits Suppliers in India and Growing Market Conditions

4. Prepared Driers (HSN 3211)

Prepared driers are substances added to paints to accelerate drying after application. They are important in industrial and automotive paint systems.

Example Products: Cobalt-based paint driers, Manganese-based driers

Use paint HSN code 3211 for these auxiliary products.

5. Printing and Drawing Inks (HSN 3215)

Although primarily inks, some artistic paints and specialty coatings fall under this code when their application is for art, signage, or graphic work.

Example Products: Acrylic inks for art, Industrial printing inks

Apply paint HSN code 3215 carefully based on product usage.

Latest GST Updates for Paints (2025)

  • In 2023-24, the GST Council decided to keep the GST rate for paints at 18% across almost all categories, maintaining consistency.
  • There’s a proposal for a slight rationalization in specific specialty coatings (like ceramic paints), which could move into higher GST brackets soon (awaiting final notification).
  • Businesses are required to mention minimum 4-digit HSN codes on B2B invoices if turnover exceeds ₹5 crore and a 6-digit HSN code if turnover exceeds ₹50 crore.

Failing to quote the correct paint HSN code on invoices can attract penalties under the GST Act Sections 122 and 125.

Importance of Using the Correct Paint HSN Code

  • If companies use the correct paint HSN code, they will be in full compliance with GST laws and will be able to avoid expensive contentions.
  • Customers can trust prices when they know how things are classified and how much tax they have to pay.
  • It’s easier to file monthly and yearly GST returns when you use your HSN correctly, which speeds up the tax documentation.
  • Correct codes reduce the chance of being audited by GST officials. 

Wrapping It Up

It is very important to know how to use the paint HSN code properly if you are in the paint business, whether you are manufacturing, selling, or importing paint. Making sure your business follows GST rules, keeping it safe from penalties, and improving financial operations have multiple benefits.

When adding new goods or making changes to your billing system, you should always cross-check HSN categories. Being correct with how you use paint HSN codes not only keeps you safe legally, but it also helps your business’s image in a market that is getting more and more competitive. 

FAQs

Does the paint HSN code have to be on every GST invoice?

According to GST rules, businesses must include the correct paint HSN code on all invoices, especially if they make more than ₹5 crore a year.

What is the GST rate for paints with the HSN code 3209?

Paints with the HSN code 3209 (acrylic and vinyl polymer paints) have an 18% GST rate.

What if I use the wrong HSN code on my GST returns?

If you give the wrong paint HSN code, it can slow returns, cause problems during audits, and lead to fines under the GST Act.

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