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February 25, 2023
By
Pranjal Gupta

GST Rates and HSN Code for Articles of Stores

If you run a small or medium business in India, you must comply with the Goods and Services Tax (GST) laws. GST is a comprehensive tax on manufacturing, sale, and consumption of goods and services. It has replaced several indirect taxes like VAT, service tax, and excise duty.

What is Articles of Stores?

Articles of Stores refer to goods that are used for the maintenance, upkeep, and operation of a business. These include supplies like stationery, office equipment, computer hardware, and software, among others. Under GST, these items are grouped under HSN code 9805.

GST Rates for Articles of Stores

According to the GST Council, Articles of Stores attract a GST rate of 18%. This means that businesses that purchase these goods must pay a tax of 18% on the value of the items. Similarly, businesses that sell these items must charge their customers 18% GST on the price of the goods.

It is important to note that GST rates are dynamic and are subject to change from time to time. Therefore, it is advisable to keep up-to-date with the latest GST rates and changes in the tax laws.

How to Determine HSN Code for Articles of Stores

HSN (Harmonized System of Nomenclature) codes are a uniform system of classifying goods for international trade. HSN codes are used to determine the GST rate applicable to a particular item. In India, HSN codes are based on the international HSN system, with minor modifications.

The HSN code for Articles of Stores is 9805. However, it is important to note that this code may change from time to time, based on the latest developments in the tax laws.

Why is Compliance Important for Small and Medium Businesses?

Compliance with GST laws is essential for small and medium businesses in India, for several reasons:

  1. Avoid Penalties: Non-compliance with GST laws can result in hefty fines and penalties. This can adversely affect the financial health of a small or medium business.
  2. Improve Credibility: Compliance with GST laws enhances the credibility of a business, leading to increased customer trust and better business opportunities.
  3. Enable Claiming of Input Tax Credits: Businesses that comply with GST laws can claim input tax credits (ITC) for the GST paid on goods and services purchased or used in the course of business. This can help reduce the overall tax liability of the business.

How to Ensure Compliance with GST Laws?

Small and Medium Businesses can take the following steps to ensure compliance with GST laws:

  1. Register for GST: All businesses with an annual turnover of more than 20 lakhs (10 lakhs for North-eastern and hill states) must register for GST. Businesses that deal with interstate supplies or e-commerce platforms must also register for GST, irrespective of their turnover.
  2. Maintain Accurate Records: Businesses must maintain accurate records of all purchases, sales, and tax payments. This will help them in filing accurate GST returns and claiming input tax credits.
  3. Filing of GST Returns: Businesses must file GST returns on a regular basis, based on their turnover. Failure to file returns can lead to penalties and fines.
  4. Engage Professional Help: Small and medium businesses can engage the services of professional tax consultants or accountants to ensure compliance with GST laws.

Conclusion

Compliance with GST laws is essential for small and medium businesses in India. Understanding the GST rates and HSN code for Articles of Stores is an important step towards ensuring compliance. By following the guidelines outlined above, businesses can ensure that they comply with the GST laws and avoid penalties and fines.

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