As a small or medium business owner or startup founder in India, understanding the GST (Goods and Services Tax) rates and HSN (Harmonized System of Nomenclature) code for the products you deal with is crucial. In this article, we will focus on one specific set of products: animal and vegetable fats and oils.
Animal and vegetable fats and oils are natural products that are derived from animals or plants, and are used in a wide range of industries such as food, cosmetics, and pharmaceuticals. These products are classified under Chapter 15 of the HSN code, which covers animal or vegetable fats and oils and their cleavage products, prepared edible fats, animal or vegetable waxes.
As per the GST law, all goods and services are categorized under different tax rates. The GST rates for animal and vegetable fats and oils vary based on the type of product, and the rates are as follows:
1. 5% GST rate for refined vegetable oils such as palm oil, sunflower oil, soybean oil, and cottonseed oil
2. 12% GST rate for animal fats such as lard, tallow, and butterfat, and for crude vegetable oils such as coconut oil and palm kernel oil
3. 18% GST rate for other vegetable fats and oils such as margarine, shortening, and cooking fats
It is important to note that the above rates are subject to change based on GST council meetings and notifications. Business owners and startup founders should consult with their tax consultants or chartered accountants for the latest GST rates and any changes in the law.
The HSN code for animal and vegetable fats and oils is 1516, and it covers subheadings for different types of products, such as edible oils, animal fats, and other fats and oils. The HSN code for each product is important for accurate invoicing and accounting purposes, and it is necessary to mention the correct HSN code on invoices and GST returns.
Here is a breakdown of the HSN code subheadings for animal and vegetable fats and oils:
1. 1516.10- Edible products of animal origin
2. 1516.20- Edible products of vegetable origin
3. 1516.90- Other animal or vegetable fats and oils and their fractions, whether or not refined, but not chemically modified
Understanding the GST rates and HSN code for animal and vegetable fats and oils is crucial for small and medium business owners and startup founders in India. The GST rates for these products vary based on the type of product, and the HSN code is necessary for accurate invoicing and accounting. It is important to stay up-to-date with any changes in the law to ensure compliance with GST regulations.
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