GST RATES HSN CODE 1202 - GROUND NUTS

Groundnuts, also known as peanuts, are a popular legume that is grown extensively in India. The nut is a rich source of protein, vitamins, and minerals, making it a nutritious snack. If you are a business owner dealing with groundnuts, it is important to understand the GST rates and HSN codes applicable to this product.

What is GST?

GST stands for Goods and Services Tax, which is a value-added tax levied on the supply of goods and services in India. GST replaced all indirect taxes levied by the Central and State Governments, making it a unified tax system. GST is applicable to all goods and services except for alcohol for human consumption and petroleum products.

What is HSN Code?

HSN code stands for Harmonised System of Nomenclature, which is a 6-digit code that classifies goods and services for taxation purposes. HSN codes are used to determine the rate of GST applicable to a particular product or service.

HSN Code and GST Rates for Groundnuts

The HSN code for groundnuts is 1202. The applicable GST rate for groundnuts is 5%. This means that if you are selling groundnuts, you will have to charge 5% GST on the sale value of the product.

Importance of Knowing GST Rates and HSN Codes

Knowing the GST rates and HSN codes applicable to your product is important for several reasons. Firstly, it helps you determine the tax liability on your product. This enables you to price your product effectively and avoid any penalties for non-compliance. Secondly, knowing the GST rates and HSN codes applicable to your product helps you claim input tax credit. This is a credit that you can claim for the tax paid on goods and services used in the production or supply of your product. Finally, it helps you maintain accurate records, making it easier to file GST returns and avoid any audits or penalties.

Conclusion

Groundnuts are an important commodity in India, and it is essential for business owners to know the GST rates and HSN codes applicable to this product. The HSN code for groundnuts is 1202, and the applicable GST rate is 5%. By understanding these rates and codes, business owners can effectively price their products, claim input tax credit, and maintain accurate records.