Calendering is a process used in the textile industry to smooth and stretch fabrics. It involves passing them through a series of rollers under high pressure and heat. This process is essential for producing high-quality textiles and is widely used in India.
As a business owner or startup founder in the textile industry, it is crucial to understand the GST rates and HSN code for calendering. The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. The Harmonized System of Nomenclature (HSN) code is used to classify goods under the GST system.
The GST rates for calendering depend on the nature of the service provided. If the service provider is engaged in the calendering of textile fabrics, the GST rate applicable is 5%. However, if the service provider is engaged in the calendering of plastics or other materials, the GST rate applicable is 18%.
It is important to note that if the service provider is engaged in the calendering of fabrics that are covered under the Textile Policy, the GST rate applicable is 2.5%. These fabrics include cotton, wool, silk, jute, and other natural fibers. However, if the fabrics are made of synthetic fibers such as polyester, nylon, or acrylic, the GST rate applicable is 5%.
The HSN code for calendering is 8420. This code is used to classify machinery and appliances for calendering, including those for textiles, plastics, and other materials. The code falls under Chapter 84 of the GST system, which covers machinery and mechanical appliances.
It is important to note that the HSN code for calendering only applies to machinery and appliances used for this process. It does not apply to the finished products themselves. For example, if you are importing or exporting calendered fabrics, you will need to use a different HSN code based on the nature of the fabric.
As a business owner or startup founder in the textile industry, it is important to ensure compliance with GST regulations. This includes registering for GST, filing GST returns, and maintaining proper records of all transactions. Failure to do so can result in penalties and legal consequences.
To ensure compliance with GST regulations, it is recommended to consult with a tax professional or accountant. They can help you understand the complexities of the taxation system and ensure that your business is operating in accordance with the law.
Understanding the GST rates and HSN code for calendering is essential for business owners and startup founders in the textile industry. By following the guidelines outlined in this guide, you can ensure compliance with GST regulations and avoid penalties and legal consequences.
Remember to consult with a tax professional or accountant to ensure that your business is operating within the law. With the right knowledge and support, you can navigate the complexities of the taxation system and grow your business with confidence.
Letter Of Authorization For GST
GST Audit- Departmental Procedures and Execution
CGST Rules: Chapter 4 – Determination of Value of Supply