Dolomite is a common mineral that nature deposits in many areas around the world. Its diverse composition lends it to a variety of uses across multiple sectors. Farmers leverage it as a soil additive to buffer pH and provide magnesium to plants. Engineers rely on its thermal properties for construction. Medicinal researchers study its potential benefits for health applications. Due to Dolomite's widespread adoption, correctly classifying it under India's GST framework is essential for businesses managing taxation compliance. This straightforward guide discusses Dolomite's designated HSN codes and applicable tax rates. Understanding these nuances allows companies to smoothly navigate their obligations to tax authorities regardless of how they utilize this remarkable rock.
This intriguing calcium magnesium carbonate mineral with such diverse industrial employment? It is utilized extensively in construction as crushed stone for roadways, cement production, and as a filler. Agriculturally, dolomite neutralizes acidic soils, supplying crucial magnesium for flourishing plant growth. The mineral also finds use medicinally as a wellspring of magnesium compounds and antacids, addressing human ailments.
A wide assortment of manufacturing industries capitalize on dolomite as well, incorporating it into glassmaking, refractory materials that withstand high temperatures, and as a filler in paints and plastics giving uniformity and texture. Versatile Dolomite participates in building infrastructure, cultivating prosperity, treating infirmity, and enabling creative productions through its myriad industrial employments.
The applicable GST rate for dolomite depends on its state and processing:
1. HSN Code 2518: Dolomite, whether or not calcined or sintered, including dolomite roughly trimmed or cut into blocks or slabs: 5% GST rate applies.
2. HSN Code 2519: Natural magnesium carbonate (magnesite); fused magnesia; deadburned (sintered) magnesia, whether or not containing small quantities of other oxides added before sintering; another magnesium oxide, whether or not pure: 5% GST rate applies.
Broken or crushed dolomite for concrete aggregates, road metalling railway, or other ballast: This falls under HSN Code 2517 and is exempt from GST.
Selecting the accurate HSN code is vital for correct tax calculation and compliance. Carefully consider the processing and intended use of the dolomite:
1. Raw (unprocessed) dolomite: Use HSN Code 2518.
2. Calcined or sintered dolomite: Use HSN Code 2518.
3. Crushed or broken dolomite for specific uses: Use HSN Code 2517 (exempt from GST).
4. Further processed forms like dead burned magnesia: Use HSN Code 2519.
Consulting a tax professional or referring to official GST guides remains advisable for complex situations.
1. Businesses utilizing Dolomite for taxable supplies are permitted to claim an Input Tax Credit for eligible purchases of this material. Proper documentation must be maintained to facilitate verification during audits.
2. Interstate transport of dolomite valued over ₹50,000 necessitates generating e-way bills through the GST portal. Cargo exceeding this limit moving between states requires electronic permits to substantiate transit.
3. Records involving invoices, e-way authorizations, along other pertinent papers must be preserved for the specified retention period (7 years). Potential examinations by officials necessitate the retention of such documentation for the designated timeframe to demonstrate regulatory adherence and tax liabilities.
By understanding the applicable GST rates, HSN codes, and related regulations, businesses dealing with dolomite can ensure accurate tax compliance and avoid potential penalties. Staying informed about any updates or changes in GST regulations is crucial for responsible tax management.
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