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Published on:
February 25, 2023
By
Harshini

GST Rates and HSN Code for Chalk

Chalk is a widely used product in India, especially in educational institutions, offices, and homes. It is a soft, white, porous sedimentary rock that is composed of fossilized calcium carbonate. Chalk has a specific HSN code and GST rate assigned to it, which is important for small and medium business owners and startup founders to understand. In this article, we will discuss the GST rates and HSN code for chalk.

HSN code for chalk

The Harmonized System of Nomenclature (HSN) is a standardized system of classification used for goods and services. The HSN code for chalk is 2509. This code is used by businesses to classify chalk for GST purposes.

GST rates for chalk

The Goods and Services Tax (GST) is a unified tax system that has replaced multiple indirect taxes in India. The GST rates for chalk are as follows:1. If the chalk is unbranded, it attracts a GST rate of 5%.2. If the chalk is branded, it attracts a GST rate of 12%.It is important to note that the GST rates for chalk may vary depending on the state in which the business is located. The above rates are applicable for all India.

Impact on small and medium businesses

The GST rates and HSN code for chalk are crucial for small and medium business owners and startup founders who deal with the production and sale of chalk. Understanding these rates helps them to calculate the taxes they need to pay and also helps in maintaining accurate records. Moreover, businesses can claim input tax credit on the GST they pay on the purchase of materials used in making chalk. This helps businesses reduce their overall tax liability.

Conclusion

In conclusion, the HSN code and GST rates for chalk are important for small and medium business owners and startup founders to understand. It helps them to maintain accurate records, calculate taxes, and claim input tax credit. It is advisable to consult a tax professional for any further queries.

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Updated on:
March 16, 2024