Cocoa Paste - GST Rates HSN Code 1803

If you are a business owner dealing with cocoa paste or planning to start a business in this field, then you should have a clear understanding of the GST rates and HSN code for cocoa paste. This will help you to avoid any confusion during the taxation process and ensure that you comply with the GST regulations in India.

What is cocoa paste?

Cocoa paste is an intermediate product formed during the processing of cocoa beans. It is produced by grinding cocoa beans into a liquid form, which is then solidified into a block. Cocoa paste is an essential ingredient in the production of chocolate, and it is also used in the manufacturing of other food products such as biscuits, ice cream, and cakes.

HSN code for cocoa paste

HSN code stands for Harmonized System of Nomenclature, which is a standard code system used to classify goods for taxation purposes. The HSN code for cocoa paste is 1803.

GST rates for cocoa paste

GST or Goods and Services Tax is a unified tax system implemented in India. The GST rates for cocoa paste depend on the type of product and its value. The GST rates for cocoa paste are as follows:

1. 5% GST rate for unprocessed cocoa beans, cocoa husk, or cocoa shell.

2. 18% GST rate for cocoa powder, chocolate, and other cocoa-based products.

3. 28% GST rate for chewing gum and other sugar-based confectionery products containing cocoa paste.

How to calculate GST for cocoa paste

To calculate the GST for cocoa paste, you need to know the HSN code and the GST rate for the product. The GST calculation formula is as follows:

GST = (Invoice value x GST rate) / 100

For example, if you purchase cocoa powder worth Rs. 10,000 with an 18% GST rate, the GST calculation will be as follows:

GST = (10,000 x 18) / 100 = Rs. 1,800

Conclusion

In conclusion, it is essential to have a clear understanding of the GST rates and HSN code for cocoa paste if you are a business owner dealing with cocoa-based products. This will help you to avoid any confusion and maintain compliance with the GST regulations in India. Make sure to consult with a tax professional to ensure that your business is following all the necessary regulations.