The HSN code for fertiliser-grade urea is 31021010, while other urea is classified under 31021090. Urea used directly as fertiliser or to manufacture agricultural fertilisers generally attracts 5% GST. Urea clearly not intended for fertiliser use generally attracts 18% GST.
What Is the HSN Code for Urea?
Urea is a nitrogen-containing chemical compound widely used in agriculture as a fertiliser and in industries for manufacturing resins, adhesives and other products.
It falls under Chapter 31 of the Indian Customs Tariff, which covers fertilisers. Heading 3102 covers mineral or chemical fertilisers containing nitrogen.
The current Indian tariff classification distinguishes fertiliser-grade urea from other urea.
| HSN Code | Product Description |
|---|---|
| 31021010 | Fertiliser-grade urea conforming to Indian Standard IS 5406 |
| 31021090 | Other urea |
Both codes fall under subheading 310210, which covers urea whether or not in aqueous solution.
Note: The older eight-digit code 31021000 has been replaced in India’s tariff classification. Businesses should use the applicable current code when detailed classification is required.
GST Rate on Urea in India
The GST rate on urea depends on whether the product is intended for fertiliser use.
Agricultural urea: Urea supplied for direct use as fertiliser generally attracts 5% GST.
Urea used to manufacture fertilisers: Urea supplied for producing complex fertilisers intended for agricultural use can also qualify for 5% GST.
Urea clearly not intended for fertiliser use: Such supplies generally attract 18% GST.
For a taxable supply at 5%, the GST components are 2.5% CGST and 2.5% SGST for intra-state transactions, or 5% IGST for inter-state transactions.
GST Calculation Example
Suppose a fertiliser distributor sells agricultural urea worth ₹20,000, excluding GST.
| Particular | Amount |
|---|---|
| Taxable Value | ₹20,000 |
| GST @ 5% | ₹1,000 |
| Total Invoice Value | ₹21,000 |
If a supply is clearly for non-fertiliser use and attracts 18% GST, the tax on the same taxable value would be ₹3,600.
Agricultural Urea vs Industrial Urea: HSN and GST Difference
Although both products contain the same chemical compound, their grade and intended use can affect their tariff classification and GST treatment.
Agricultural urea is manufactured for use as a nitrogen fertiliser. Fertiliser-grade urea conforming to IS 5406 falls under HSN 31021010.
Industrial urea may be used to manufacture resins, adhesives and other industrial products. Urea not meeting the fertiliser-grade tariff description generally falls under HSN 31021090.
However, industrial or technical-grade urea should not automatically be assigned 18% GST. Urea supplied for manufacturing complex fertilisers intended for agricultural use can qualify for the concessional 5% rate.
The applicable GST treatment must be determined from the product’s classification and its intended use under the relevant notification.
Is Urea Used to Manufacture NPK Fertilisers Taxed at 5%?
Yes, qualifying urea supplied for manufacturing complex fertilisers intended for agricultural use can attract 5% GST.
CBIC Circular No. 54/28/2018-GST clarified that the concessional rate covers fertilisers supplied directly for agricultural use as well as those used to manufacture complex fertilisers for soil or crop application.
Therefore, businesses should not assume that every sale of urea to a manufacturing unit attracts 18% GST. The intended use of the supplied urea matters.
Frequently Asked Questions
What is the eight-digit HSN code for agricultural urea?
The eight-digit HSN code for fertiliser-grade urea conforming to IS 5406 is 31021010.
Is GST on urea 5% or 18%?
Urea used as fertiliser or for manufacturing agricultural fertilisers generally attracts 5% GST. Urea clearly not intended for fertiliser use generally attracts 18%.
Is HSN code 31021000 still valid?
HSN 31021000 is an older tariff item. India's updated classification distinguishes fertiliser-grade urea under 31021010 and other urea under 31021090.
Does urea used for manufacturing NPK fertilisers attract 5% GST?
Qualifying urea supplied for manufacturing complex fertilisers intended for agricultural use can attract 5% GST, as clarified by CBIC.
Sources
- Directorate General of Foreign Trade (DGFT) – ITC (HS) Classification — Urea tariff codes 31021010 and 31021090.
- CBIC – GST Goods and Services Rates — GST treatment under Heading 3102.
- GST Council – Circular No. 54/28/2018-GST — Clarification on fertilisers supplied for direct use and manufacturing complex fertilisers.
Last Reviewed: 14 October 2026
