Small and medium business owners, as well as startup founders, need to be aware of the GST rates and HSN codes that apply to the products they sell. This is especially true for cotton yarn containing 85% no retail sale, which is subject to specific taxation rules in India.
As per the GST Council, cotton yarn containing 85% no retail sale is classified under the 5% tax bracket. This means that the business owners or companies that manufacture or trade this type of yarn are required to pay a 5% GST on the total value of their sales.
It's important to note that the 5% GST rate applies only to cotton yarn containing 85% no retail sale. If the product contains any other percentage of cotton, or if it is classified as a different type of yarn, then it will be subject to different GST rates.
HSN codes are used to classify goods for taxation purposes. Cotton yarn containing 85% no retail sale has a unique HSN code, which is 5205.
HSN code 5205 applies to cotton yarn, including those put up for retail sale, and it covers a variety of yarn types including those made from carded or combed cotton. However, it's important to note that the HSN code 5205 applies only to cotton yarn containing 85% no retail sale, and not to any other type of yarn.
Understanding the GST rates and HSN codes that apply to your products is crucial for any small or medium business owner, or startup founder. In the case of cotton yarn containing 85% no retail sale, the GST rate is 5% and the HSN code is 5205. Being aware of these rates and codes can help businesses to ensure they are compliant with Indian tax laws and avoid any penalties or fines.
Artificial Graphite - GST Rates and HSN Code 3801
Audit under GST- When You Might Get Audited by Tax Officers?
FAQs on GST Non-Registration Penalty, Registration Cancellation / Amendment