As a small or medium business owner or startup founder who deals in candles, tapers and the like, it is important to understand the GST rates and HSN code for these products. This knowledge will help you avoid any legal issues that may arise from non-compliance and also help you calculate your taxes correctly.
As of April 2021, the GST rate for candles, tapers, and other similar products is 12%. This rate is applicable to all types of candles, including scented and unscented candles, decorative candles, tea lights, and more. However, if you are a manufacturer or supplier of candles, it is important to note that the GST rate for candles made from shellac, including lac, is 5%.
The HSN code for candles, tapers, and other similar products is 3406. This code is used to classify all types of candles, including scented and unscented candles, decorative candles, tea lights, and more.
Calculating GST on candles, tapers, and other similar products is quite straightforward. You simply need to multiply the cost of the product by the applicable GST rate. For example, if you are selling a scented candle for Rs. 100, the GST that you need to pay on this product would be:
Rs. 100 x 12% = Rs. 12
Therefore, the total cost of the scented candle would be Rs. 100 + Rs. 12 (GST) = Rs. 112.
Understanding the GST rates and HSN code for candles, tapers, and other similar products is crucial for small and medium business owners and startup founders who deal in these products. It not only helps you avoid any legal issues but also ensures that you calculate your taxes correctly. We hope that this article has provided you with the information that you need to comply with GST regulations and run your business smoothly.
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