Betel nuts, also known as areca nuts, are widely consumed in India, both as a stimulant and as a part of religious or cultural practices. Being a taxable commodity, it is important for business owners and startup founders to understand the GST rates and HSN code for betel nuts.
GST, or Goods and Services Tax, is an indirect tax levied by the government on the supply of goods and services. It is a comprehensive tax system that subsumes all other indirect taxes like service tax, excise duty, VAT, etc. The GST rates for different goods and services vary based on their classification under the Harmonized System of Nomenclature (HSN) code.
HSN code is a 6-digit universal code used to classify goods and services for taxation purposes. It is used globally to identify and categorize products for international trade. The HSN code for betel nuts is 8029.
The GST rate for betel nuts is 5%. This applies to both raw and processed betel nuts, including desiccated betel nuts and betel nut powder.
To calculate GST for betel nuts, you need to multiply the selling price of the product by the applicable GST rate.
For example, if the selling price of raw betel nuts is Rs. 100 per kg, the GST applicable would be 5%. Therefore, the GST amount would be Rs. 5 and the total cost of the product would be Rs. 105 (Rs. 100 + Rs. 5).
Yes, it is mandatory to mention the HSN code on invoices for businesses with an annual turnover of more than Rs. 1.5 crores. For businesses with a turnover of less than Rs. 1.5 crores, it is optional but recommended to mention the HSN code on invoices.
Understanding the GST rates and HSN code for betel nuts is crucial for business owners and startup founders in India. The GST rate for betel nuts is 5% and the HSN code for betel nuts is 8029. It is important to mention the HSN code on invoices to avoid any penalties or legal issues.
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