Coin - GST Rates HSN Code 7118

Coins have been a part of human civilization since ancient times. They are small, round, and shiny objects made from metal or other materials. Coins are used as a medium of exchange to buy and sell goods and services. In India, coins also hold cultural and religious significance. For instance, the goddess Lakshmi is often depicted holding a lotus flower and a coin.

With the introduction of the Goods and Services Tax (GST) in India, it is essential to understand the GST rates and HSN codes for coins. HSN stands for Harmonized System of Nomenclature, and it is a standardized system of names and numbers used to classify goods and services.

HSN Code for Coins

The HSN code for coins is 7118. This code is used to identify and classify coins according to their metal content, weight, and other specifications. The HSN code for coins covers all types of coins, including commemorative coins, bullion coins, and collector coins.

GST Rates for Coins

The GST rates for coins vary depending on the type of coin and its metal content. The GST rates for different types of coins are as follows:

1. Gold coins – 3%

2. Silver coins – 3%

3. Other coins – 12%

It is important to note that the GST rates for coins apply only to the metal content and not the value of the coin. For instance, a gold coin worth Rs. 10,000 will attract a GST of Rs. 300 (3% of Rs. 10,000) regardless of its actual value.

Impact of GST on the Coin Industry

The introduction of GST has had a significant impact on the coin industry in India. One of the major changes is the requirement to maintain detailed records of all transactions, including the sale and purchase of coins. This has led to an increase in administrative work and costs for businesses that deal in coins.

Another impact of GST is the change in the tax structure for coins. Prior to GST, coins were exempt from sales tax, which made them more affordable for customers. However, with the introduction of GST, customers now have to pay a higher tax rate on coins, which has led to a decline in demand for coins.

Conclusion

The GST rates and HSN code for coins are essential for businesses and customers who deal in coins. It is important to understand the tax structure and regulations to avoid any legal or financial issues. With the proper knowledge and understanding, businesses can continue to thrive in the coin industry and provide customers with high-quality coins.