Indian ITC-HS · Tariff Item (8-digit)

HSN Code 98010020

98010020

Components (whether or not finished or not) or raw materials for the manufacture of aforesaid items required for the initial setting up of a unit or the substantial expansion of a unit

Back to HSN Code Finder
Source: CBIC Part II Import Tariff, chapter-wise PDFs·Indian Customs Tariff — First Schedule (as on 30.06.2024, CBIC)

Effective import duty stack

Live values from India's ICEGATE customs calculator, computed on an assessable value of ₹100.

Unitkg.
BCD7.5%₹7.50
AIDC7.5%₹0.56
SWS10%₹0.81
IGST18%₹19.60Notif. 009/2025-II635
Total Duty28.47%≈ ₹28.47 per ₹100 of CIF
How it's calculated

For an assessable value of ₹100:

  1. BCD = AV × 7.5% = ₹7.50
  2. AIDC = BCD × 7.5% = ₹0.56
  3. SWS = (BCD + AIDC) × 10% = ₹0.81(exemption notifications exist for this code; verify eligibility)
  4. IGST = (AV + BCD + AIDC + SWS) × 18% = ₹19.60
  5. Total Duty = BCD + AIDC + SWS + IGST = ₹28.47 (28.47%)

Notifications and exemptions can lower the effective rate for specific goods or FTA partner countries. Cross-check against the latest CBIC circulars before filing.

Customs Compliance Requirements published on ICEGATE for this tariff item — covers BIS / DOT / EPR / quarantine etc. Click to expand.

Where this code sits

Section XXII
PROJECT IMPORTS; LABORATORY CHEMICALS; PASSENGER'S BAGGAGE; PERSONAL IMPORTATIONS BY AIR OR POST; SHIP STORES
Chapter 98
Project imports; laboratory chemicals; passengers' baggage, personal importations by air or post; ship stores
Tariff hierarchy
  1. 1
    9801Heading (4-digit)
    ALL ITEMS OF MACHINERY INCLUDING PRIME MOVERS, INSTRUMENTS, APPARATUS AND APPLIANCES, CONTROL GEAR AND TRANSMISSION EQUIPMENT, AUXILIARY EQUIPMENT (INCLUDING THOSE REQUIRED FOR RESEARCH AND DEVELOPMENT PURPOSES, TESTING AND QUALITY CONTROL), AS WELL AS ALL COMPONENTS (WHETHER FINISHED OR NOT) OR RAW MATERIALS FOR THE MANUFACTURE OF THE AFORESAID ITEMS AND THEIR COMPONENTS, REQUIRED FOR THE INITIAL SETTING UP OF A UNIT, OR THE SUBSTANTIAL EXPANSION OF AN EXISTING UNIT, OF A SPECIFIED : (1) industrial plant, (2) irrigation project, (3) Power project, other than solar power plant or solar power project (4) mining project, (5) project for the exploration for oil or other minerals, and (6) Such other projects, other than solar power plant or solar power project, as the Central Government may, having regard to the economic development of the country notify in the Official Gazette in this behalf; and spare parts, other raw materials (including semi-finished material) or consumable stores not exceeding 10% of the value of the goods specified above provided that such spare parts, raw materials or consumable stores are essential for the maintenance of the plant or project mentioned in (1) to (6) above
  2. 2
    98010020Tariff Item (8-digit)
    Components (whether or not finished or not) or raw materials for the manufacture of aforesaid items required for the initial setting up of a unit or the substantial expansion of a unit

What is an HSN Code?

An HSN code (Harmonized System of Nomenclature) is an internationally standardised numeric system to classify traded products. Indian customs extend it to an 8-digit ITC-HS code for more precise classification, taxation and compliance.

  • First 2 digits: Chapter (e.g. 98)
  • Digits 3–4: Heading
  • Digits 5–6: Subheading (WCO-aligned)
  • Last 2 digits: Indian ITC extension for added granularity
Chapter98
Heading9801
Subheading980100
Tariff Item98010020

Related codes

Other entries sharing the same heading. Useful for narrowing down the right tariff item.

98010011- For industrial plant project7.5%98010012- For irrigation plant7.5%98010013- For power project, other than solar power plant or solar power project7.5%98010014- For mining project7.5%98010015- Project for exploration of oil or other minerals7.5%98010019- For other projects, other than solar power plant or solar power project7.5%98010030Spare parts and other raw materials (including semi-finished materials or consumable stores for the maintenance of plant or project7.5%

Why is the right HSN code important?

  • Ensures correct calculation of customs duties and taxes.
  • Required for shipping bills, bills of entry, GST filings and FTA certificates of origin.
  • Helps avoid clearance delays, penalties or reclassification disputes.
Tip: Always cross-check the 8-digit code against the latest DGFT / Customs schedule before filing.

How to use this HSN code

Export Documentation

Use this code in your Commercial Invoice, Packing List, and Shipping Bill for exports from India.

Import Clearance

Required for the Bill of Entry and customs clearance when importing goods into India.

GST Classification

Drives the applicable GST rate, HSN-wise summary in GSTR-1 and ITC eligibility checks.

Common HSN code mistakes to avoid

  • • Reusing outdated or incorrect codes from old shipments
  • • Mixing up similar product codes without checking descriptions
  • • Ignoring the last 2 digits which affect Indian duty rates
  • • Not considering composition, end use or manufacturing process
  • • Relying solely on online tools without professional verification

Need more information?

For complex products, consult with customs brokers or trade experts who can classify based on:

  • • Physical product inspection
  • • Material composition / manufacturing process
  • • Intended end-use
  • • Latest customs notifications & advance rulings
Pro tip: Correct HSN code usage saves time, money and grief at customs.

Additional Resources

• DGFT Policy: Guidelines for export-import procedures

• Customs Tariff: Complete HSN code list with duty rates

• GST Notifications: Latest tax-rate updates

• Trade Portal: Government trade documentation support

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