Petrol HSN Code in India

Learn about the petrol HSN code, GST rates, its importance, and different petrol categories. Get examples and understand the correct classification for businesses.
Check Eligibility
Business Loan
Check Eligibility
4 min
18 August 2025

Petrol, as a cornerstone of India’s economy, powers a significant portion of transportation, manufacturing, and industrial activities. Its classification for taxation and trade is essential to ensure compliance with state and national regulations. The Harmonised System of Nomenclature (HSN) code plays a crucial role in identifying and categorising goods like petrol for efficient trade and taxation. By understanding the HSN code for petrol, businesses can streamline operations, calculate taxes accurately, and comply with global trade norms. In this article, we will explain the specific HSN code for petrol, its GST implications, categories, and its importance in business operations. With this knowledge, companies can enhance compliance and improve efficiency in trade practices.

What does the petrol HSN code mean?

The HSN code for petrol is classified under Chapter 27, which encompasses mineral fuels, oils, and products derived from their distillation. Petrol specifically falls under HSN code 2710, covering petroleum oils and oils obtained from bituminous minerals. This classification aids businesses in complying with trade laws and determining applicable taxes. Tools like an HSN code finder can help businesses easily identify the correct codes for their products, ensuring proper classification.

Accurate classification under HSN codes benefits businesses by standardising trade processes, simplifying taxation, and facilitating regulatory adherence. For instance, petrol, being a widely traded commodity, requires correct HSN categorisation to ensure accurate VAT application as it is currently exempted from GST.

HSN codes are also crucial for international trade as they provide consistency across borders, enabling seamless export and import operations. By incorporating the HSN code for petrol in invoicing, businesses can streamline documentation and reduce the risk of tax disputes or penalties.

Business Loan
Business Loan

HSN code and GST rate on petrol

Petrol falls under HSN code 2710, but it is important to note that it is currently exempted from the Goods and Services Tax (GST). Instead, petrol is taxed under the Value Added Tax (VAT), which is regulated by individual state governments. This dual-taxation system makes petrol an exceptional case in India’s GST framework.

Here is a detailed table showcasing the HSN code and GST/VAT applicability for petrol:

Commodity HSN code Tax applicability
Petrol (Motor spirit) 2710 VAT (State-specific rates)
Aviation Turbine Fuel (ATF) 2710 VAT (State-specific rates)

While GST rate does not apply to petrol, understanding the HSN code is essential for VAT calculation and adherence to state regulations. Businesses involved in the production, trade, or consumption of petrol must stay updated on VAT rates in their respective states.

Importance of HSN codes for petrol

Correctly classifying petrol under the appropriate HSN code is vital for businesses and regulators alike. Here are key reasons why:

  • Regulatory compliance: Adherence to HSN codes ensures businesses meet state and central tax requirements, reducing the risk of penalties
  • Simplified taxation: While petrol is exempt from GST, proper HSN categorisation helps businesses apply accurate VAT rates specific to their states
  • International trade standardisation: Petrol’s classification under HSN code 2710 ensures consistent trade documentation across global markets, promoting smoother exports and imports
  • Streamlined documentation: Using accurate HSN codes simplifies invoicing and reporting for businesses, enhancing operational efficiency
  • Reduction in disputes: Accurate classification minimises tax-related disputes and errors, ensuring smoother compliance processes

By incorporating the HSN code for petrol in trade and accounting practices, businesses can improve transparency and operational efficiency while ensuring compliance with tax norms.

Categories of petrol HSN codes

The HSN code for petrol is broadly classified under 2710, but there are specific subcategories based on the type and usage of petrol. These include:

  • Motor spirit (Petrol): Petrol used in automobiles for transportation purposes
  • Aviation turbine fuel (ATF): Specialised petrol variant used in aircraft
  • Industrial petrol: Petrol employed in industrial and manufacturing processes

Each category under the HSN code 2710 is defined to meet the specific needs of different sectors. For example, aviation fuel is designed to provide high energy efficiency in aircraft, while motor spirit caters to vehicular engines.

These classifications help streamline taxation and trade practices by clearly distinguishing petrol variants based on usage and composition. Accurate categorisation also ensures businesses apply the correct tax rates, whether under VAT or other applicable levies.

Examples of petrol HSN codes

Here are a few detailed examples of how petrol and related products are classified under the HSN system:

Petrol category HSN code Description
Motor spirit (Petrol) 2710 Petroleum oils used in vehicles for transportation
Aviation Turbine Fuel (ATF) 2710 Specialised fuel used in aircraft engines
Other petroleum products 2711, 2712 Includes liquefied gases and petroleum jelly derivatives


These examples highlight how the HSN system helps differentiate various petroleum products. Businesses must ensure accurate categorisation to avoid tax miscalculations and streamline operations.

Conclusion

Petrol’s classification under the HSN code 2710 is critical for businesses involved in its trade or consumption. While GST is not applicable to petrol, understanding its HSN code is essential for VAT compliance and accurate tax calculation. By leveraging the HSN system, businesses can ensure operational transparency and regulatory adherence. For entrepreneurs seeking to expand their ventures in the petroleum sector, financial assistance such as a business loan with competitive business loan interest rate can help overcome operational challenges and foster growth.

Frequently asked questions

What is petrol HSN code 2710?
The HSN code 2710 classifies petroleum oils, including petrol, obtained from bituminous minerals. It specifically applies to products like motor spirit (petrol) used for transportation and other petroleum derivatives. This code helps standardise trade practices, ensure accurate taxation, and simplify compliance with regulatory requirements for both domestic and international trade.

What is the HSN code 27111990?
The HSN code 27111990 refers to liquefied gases derived from petroleum oils or gases not elsewhere specified. These include butane, propane, and other related products used in industrial, domestic, or specialised applications. This specific categorisation ensures proper identification, taxation, and compliance for liquefied petroleum gas (LPG) and related commodities.

Show More Show Less

Bajaj Finserv App for All Your Financial Needs and Goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.

  • Explore and apply for co-branded credit cards online.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements, and even get quick customer support—all on the app.
Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

GET THE APP

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.