GST Rates & HSN Code for Unused Postage & Revenue Stamps

The harmonic system of naming (HSN) code plays a vital role in classifying goods for domestic and international trade. It is used to distinguish one product from another and to streamline the tax process under the Goods and Services Tax (GST) regime. The HSN code applies to products made in India and abroad and varies based on the business to ensure compliance with GST rules.

Regarding postal and income tickets (whether unused or specific collective conditions), the classification comes under Chapter 97 - especially HSN code 9704, which is related to the functions of art, collectors, and antiques. This blog provides a detailed insight into the HSN code for unused postal/income tickets, its essential function,s and observational requirements required for companies involved.

Understanding HSN Code 9704: Classification of Postage and Revenue Stamps

The HSN code 9704 is the trading code used for Postage/Revenue Stamps. This code comes under Chapter 1 of the HSN code list and is further broken down into subheadings as 01, 02, 03, etc., as per the GST rates. These GST rates can be levied based on IGST on interstate trading in addition to SGST/CGST on trading goods within the state.

HSN Code & GST Rates for Postage/Revenue Stamps

Here's a complete list of HSN codes for Postage/Revenue Stamps sideways with units and GST rates derived under chapter 97.0 of Works of Art, Collectors' Pieces, then Antiques.

HSN Code	Description	Rate (%)	Rate Revision
9704	Postage Or Revenue Stamps, Stamp-Post Marks, First-Day Covers, Postal Stationery	5	5%
970400	Postage Or Revenue Stamps, Stamp-Post Marks, First-Day Covers	5	5%
97040010	Used Postal Stamp	5	5%
97040020	Used Or Unused First-Day Covers For Philatelists	5	5%
97040090	Other	5	5.00%

Key Features of HSN Code for Postage/Revenue Stamps

Here are certain key features of the HSN code for different animal products:

The HSN code is a unique code selected for different goods for trading. This code consists of 6 digits, characterized by a uniform number. This classifies 5000+ products so far that are acknowledged worldwide.
Also, the length of the HSN code may vary depending on several factors, such as the greater portion of products, expanded product categories, and even the business turnover.
Under the classification of the HSN module, there are about 21 sections, 99 chapters, 1,244 headings, and 5,244 subheadings to simplify international trade.
The first two digits characterize the chapter; the next two digits define the category, and then further extensions of codes specify more product riders or country-specific products.

What is the HSN Code in GST?

The HSN code refers to the specification of the product side with its characteristics. The HSN Code in GST is important for distinguishing products from one another. Getting the GST for HSN helps to understand whether the product is different and unique from supplementary products. Under this code, the HSN code eradicates the need for a detailed description of products. If a dealer or service provider's business falls above the slabs or limit of Rs. 5 crores, he or she must take in an HSN/SAC-specific sales summary in his GSTR-1.

Disclaimer

To the best of our knowledge, the rates recorded above, which are provided, have been revised from the declaration no. 05/2020, dated October 16, 2020. We obtained the HSN code information from the master codes on condition that it is on the NIC's GST e-Invoice system. Variations may occur as a result of government upgrades. Please remember that we cannot be held accountable for any incorrect information. If you need information about the "effective date" for each GST or cess rate, please go to the CBIC website.

Conclusion

The HSN code 9704 in Postage/Revenue Stamps pays the taxes on the turnover of their business. This code is mandatory for businesses that surpass the turnover limit of a certain company of Rs. 5 crore. This HSN code helps to discriminate and specify the characteristics of foodstuffs that are used for trading. If you get the Postage/Revenue Stamps HSN code 9704, your business goods get full identification and recognition from a diverse range of items trading.

FAQs

1. What is the penalty for not mentioning the HSN code?

Every Taxpayer needs to report the correct HSN/SAC Code on Tax Invoices besides GSTR-1. The penalty of Rs 50000 ( Rs 25000 under CGST and Rs 25000 under SGST) would be imposed for non-mentioning of HSN/SAC or wrong citing of HSN/SAC in GST Returns and Tax Invoices.

2. Is GST applicable on stamp charges?

No, GST is not leviable on stamp duty. Nonjudicial stamp papers are excused from GST as per the prevailing GST Law, which does not levy GST on them.

3. Do you charge GST on shipping?

Sometimes, it depends on where you distribute your order. Within Australia and New Zealand, We charge GST on shipping. Overseas: Taxes are subject to the destination country's local tax regulations, duties, and/or tax charges.

4. Is there any GST on stamp duty?

Stamp duty is a state-imposed tax, and it does not attract GST. Since the imprint duty is categorized under legal papers charges, it does not have an HSN code or a specific GST rate. The GST law does not contain stamp duty as it is not classified as goods or services under the GST Act.