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Published on:

December 26, 2024

Alankar Mishra

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Basics of GST

Black Pepper HSN Code and GST Rate - 0904

Black Pepper, otherwise known as the King of Spices, has enjoyed a great time in the history of world trade and international food. In India, Black Pepper Mr P Pagdi Manohar, Advocate, External Legal Advisoripends under the Harmonized System Nomenclature (HSN) and is charged as tax in the form of Goods and Services Tax (GST). Knowing the HSN code and GST rates for black pepper is very important to the businesses that handle growing, selling and exporting this spice.

HSN Code for Black Pepper

The HSN is a system of names and numbers that has forces pinned in every single country over all its synonyms. It was created by the World Customs Organization (WCO) and it seeks to `maintain HSN consistency` across nations that include India and more than 200 others.

As for black pepper, the appropriate HSN code corresponds to chapter 9 which deals with `Coffee, tea, mate and spices`. Section 0904 which focuses on ‘Pepper plants that have dried, crushed’ speaks about black pepper being among the heads in this chapter. This title also has subdivisions which describe the condition of the black pepper pepper:

HSN Code	Description
0904 11	Pepper of the genus Piper; neither crushed nor ground.
0904 11 10	Pepper, long.
0904 11 20	Light black pepper.
0904 11 30	Black pepper, garbled.
0904 11 40	Black pepper, ungarbled.
0904 11 50	Green pepper, dehydrated.
0904 11 60	Pepper pinheads.
0904 11 70	Green pepper, frozen or dried.
0904 11 80	Pepper other than green, frozen.
0904 11 90	Other.
0904 12	Pepper of the genus Piper; crushed or ground.
0904 12 00	Crushed or ground pepper.

These classifications help in identifying the specific type and form of black pepper for trade and taxation purposes.

GST Rate for Black Pepper

Goods and Services Tax (GST) is a Substitute Indirect Tax applicable to the manufacture, trade and consumption of goods and services throughout India. The GST tax rates are set at 0%, 5%, 12%,., 18% and 28% per tier.

According to the rules set by the GST Council, Black Pepper would be classified within the 5% GST classification. This rate holds good for most if not all forms of Black pepper, which include whole grain, crushed, or powder. The approved GST rate for Black Pepper will be stated as follows:

HSN Code 0904: Peppers are derived from the Piper genus as well as the fruits of the Capsicum or Pimenta which are dried or mixed or ground.

GST Rate: 5%

This rate was implemented on the 1st of July 2017. As a result, every granular item included in HSN code 0904 is subject to a 5% application.

Importance of Correct HSN Code and GST Rate Application

If you are a business that deals with black pepper, you must articulate the HSN code applicable to your business for the following reasons:

‍Policies and Regulations: Make certain that you comply with tax laws and avoid incurring any fines as a result of a legal breach.

‍Tax Compliance: Aid in guaranteeing that the firm only remits the strict amount of tax required to be paid and not less or more.

‍Reduced bureaucracy: Makes the operations at customs and trade in particular for exporters and importers less complex.

‍Audit: Helps businesses to keep good records that are necessary during audits and other evaluations of the firm.

If you don’t articulate the HSN code correctly, you will attract penalties or breach trade which may delay processes like clearing customs and filing tax returns. For that reason, companies have to responsibly remain apprised of the HSN codes and the GST rates applicable to their goods.

‍Conclusion

For those engaged in trade, it is crucial to know the HSN code 0904 and the black pepper's GST rate which is 5%. Correct classification and taxation guarantee seamless activities, legal compliance, and enhanced financial control. Additionally, it is also essential to remain informed of the updates or modifications in the product or tax classifications to adhere to compliance and enhance business functions.

FAQs

‍1. Are garbled and ungarbled black peppers classified under the same HSN code?

Yes, cleaning chemically altered and ungarbled or unprocessed black pepper belongs in the same category which is HSN 0904.

2. Why is it important to know the HSN code for black pepper?

The HSN code guarantees better tax compliance, invoice accuracy, and export/import functionalities.

3. Does the GST rate for black pepper vary by its form?

There is no distinction in the applied rate of tax. All types of black pepper specifically those under HSN 0904 have a uniform rate of 5 percent.

4. How does GST affect the pricing of black pepper?

GST imposes a 5% tax on the base price, which ensures uniformity and regularity in tax.

5. Is black pepper exempted from GST in any case?

No, black pepper does not fall into any sort of exception and is granted a GST slab of 5%.

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