Coconuts have immense significance in Indian culture, valued both culinarily and medically for millennia. Every last piece of the coconut tree is put to practical use. It is therefore prudent to understand the applicable Goods and Services Tax rates and Harmonized System codes for coconuts and their myriad products.
Coconuts fall under HSN 0801 as live trees, plants, bulbs, roots, and similar flora. Remuneratively, the GST levy on raw coconuts themselves is a negligible 0%. However, if any stage of processing transforms the coconut, the congruous GST percentage relies on the ultimate form. Whether creamed, candied, or cured - value addition modulates duty.
Obtained through pressing the kernel inside the coconut's hard exterior, coconut oil has innumerable uses spanning cuisine, cosmetics, and curative practices. With a GST levy of 5% under HSN 1513, this versatile oil's applications seem endless whether for cooking, conditioning skin and hair, or supporting wellness in age-old remedies.
Found filling young coconuts, this water offers a cooling libation bursting with benefits. Quenching thirst and lifting spirits, coconut water's popularity only grows while retaining its zero-rated GST status under code 2009. Beyond refreshment, its composition nurtures health from within in a simple package.
Produced by extracting liquid from grated coconut meat, milk, and cream replaces dairy for some while retaining tropical tastes. Employed extensively in preparations both sweet and savory, they carry a 5% GST under code 0401 befitting their versatile service across cooking and baking.
Coconut shells and charred shells are acquired from the tough exterior of the coconut fruit. They have numerous commercial uses such as in activated carbon production, as fuel, and for handmade items. For coconut shells and charred shells, the goods and services tax percentage is 5% under harmonized system code 4402.
The stringy fibers extracted from the coconut's shaggy husk are known as coir. Coir is widely employed in agriculture, horticulture, and manufacturing mats, ropes, and brooms. The goods and services tax rate applied to coir is 5% under harmonized system code 5305. Coconut husks yield coir through labor-intensive separation of the coarse, brown fibers from the surrounding fruit tissue. These natural fibers find applications as soil improvers and draining materials in gardening due to their water retention abilities.
Both coconut sugar and jaggery are sweeteners created using the sap tapped from coconut palm trees, providing a healthier substitute to overly refined white sugar with an array of health benefits. Possessing a lower glycemic index and richer mineral content, these natural sweeteners break down gradually, preventing spikes and crashes in blood sugar levels. Additionally, the production of coconut sugar and jaggery creates economic opportunities for farmers. Under HSN code 1704, the government levies a reasonable 5% GST on these commodities to balance public health priorities with agricultural industry needs.
While coconut shells were once discarded as waste, ingenious artisans now transform them into beautiful, eco-friendly products through skills passed down between generations. Intricately carved bowls, cups, and spoons crafted from coconut shells appeal not only for their aesthetic grace but also for their minimal environmental impact. In demand both locally and abroad, these sustainable handicrafts help uplift marginalized artisan communities. Under HSN code 4421, the government aims to incentivize this cottage industry through a moderate 12% GST, supporting local talent and traditional methods of generating livelihood.
Coconuts are an important part of daily life in India for many reasons. They and their byproducts fulfill a variety of needs. The goods and services tax rates and harmonized system nomenclature codes applicable to coconuts, coconut oil, and associated items are crucial for industries involved in farming, manufacturing, and retail. Staying current on any modifications to the percentages levied or classifications utilized is imperative to dodging fees and adhering to regulations. Noncompliance can result in expensive consequences that businesses wish to sidestep.
GST Rate HSN Code for Edible Vegetables
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