TaxTMI 
TaxTMI 
I would like to know whether coffee beans unroasted (HSN 0901) is NIL rated or EXEMPTED. If EXEMPTED, please share the notification details. Thanks in advance.
GST rate for coffee beans (unroasted)
01 May 2026 
4 Replies 
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Exempt supply treatment for unroasted coffee beans under GST affects classification and input tax credit restrictions.
Under GST, unroasted coffee beans under HSN 0901 are discussed as exempted goods rather than merely nil-rated goods. The distinction is that nil-rated goods are taxed at 0%, while exempt goods are covered by an exemption notification and constitute exempt supply under the CGST framework. The text also notes that this classification has compliance consequences, including restriction of input tax credit under section 17(2). (AI Summary)
Under GST, unroasted coffee beans under HSN 0901 are discussed as exempted goods rather than merely nil-rated goods. The distinction is that nil-rated goods are taxed at 0%, while exempt goods are covered by an exemption notification and constitute exempt supply under the CGST framework. The text also notes that this classification has compliance consequences, including restriction of input tax credit under section 17(2). (AI Summary)