One of the most frequent questions BBI receives from new customers is about GST: "What is the GST rate on biomass pellets? What HSN code applies? Can we claim input tax credit?" This guide provides clear, accurate answers for industrial buyers as of 2026.
HSN Code for Biomass Pellets
Biomass pellets (wood pellets and agro-waste pellets) fall under HSN Code 4401 — specifically:
- 4401 31 00 — Wood pellets (wood compressed into pellet form)
- 4401 39 00 — Other (agro-residue pellets — cotton stalk, groundnut shell, rice husk, etc.)
BBI's primary product (agro-waste pellets) falls under 4401 39 00. Always verify the HSN code on your supplier's invoice — incorrect HSN codes can cause ITC mismatches during GST audits.
GST Rate on Biomass Pellets (2026)
As of the 2026 GST rate schedule, biomass pellets under HSN 4401 attract 5% GST (2.5% CGST + 2.5% SGST for intra-state; 5% IGST for inter-state). This is one of the lowest GST rates for industrial fuels, reflecting the government's policy push to make renewable fuels cost-competitive with coal.
For comparison: coal (HSN 2701) attracts 5% GST, and furnace oil (HSN 2710) is outside GST (subject to VAT/state levies). Biomass pellets are therefore GST-advantaged versus furnace oil.
Input Tax Credit (ITC) on Biomass Pellets
Yes — industrial buyers can claim ITC on biomass pellets purchased for use as fuel in manufacturing. The key conditions:
- The buyer must be GST-registered
- The biomass pellets must be used for business purposes (not exempt supplies)
- The supplier (BBI) must have filed their GSTR-1 correctly
- ITC claim must be within the stipulated period (Section 16(4) time limit)
BBI issues fully GST-compliant tax invoices with correct HSN codes, GSTIN, and e-way bill documentation for all deliveries above ₹50,000.
GST Registration Details for BBI
All BBI invoices include our GSTIN, HSN code (4401 39 00), and e-way bill number. Our invoices are reconcilable with GSTR-2B. Contact our accounts team at info@bharatbioindustries.com for sample invoice format before placing your first order.