If you are in the textile industry in India, understanding the GST rates and HSN code for Felt is essential. Felt is a non-woven textile that is used in various applications such as industrial, automotive, and crafts. In this guide, we will discuss the GST rates and HSN code for Felt and how it affects your business.
Felt is a type of non-woven textile that is made from wool or other fibers by compressing and matting them together. Unlike other fabrics, felt is not made by weaving or knitting. Instead, it is made by pressing the fibers together with heat, moisture, and pressure. Felt is an extremely versatile material that is used in various industries such as automotive, industrial, and crafts.
Under GST, the rates for felt are classified under the heading 56.02. The GST rates for felt are as follows:- 5% for felt used in hats, caps, and other headgear- 12% for felt used in other applications
HSN stands for Harmonized System of Nomenclature. It is a code system that is used to classify goods for taxation purposes. The HSN code for felt is 5602. This code is used for all types of felt, whether made from wool or other fibers.
To determine the HSN code for felt, you need to know the following:
- Whether the felt is made from wool or other fibers
- The percentage of wool fibers in the felt
- The intended use of the felt.
Once you have this information, you can use the following guidelines to determine the HSN code for felt:
- If the felt is made from wool and contains at least 85% wool fibers, the HSN code is 5602.10
- If the felt is made from wool and contains less than 85% wool fibers, the HSN code is 5602.90
- If the felt is made from other fibers, the HSN code is 5602.90
- If the felt is used in hats, caps, or other headgear, the HSN code is 6505.00
As a business owner in India, it is important to know the GST rates and HSN code for Felt. This information is necessary for the following reasons:
- To determine the correct tax rate for your products
- To comply with the GST regulations and avoid penalties
- To maintain accurate records and avoid audits
In conclusion, understanding the GST rates and HSN code for Felt is essential for small and medium business owners and startup founders in India. By knowing the correct tax rates and HSN code for your products, you can avoid penalties and maintain accurate records. If you have any further questions about Felt and its taxation in India, consult with a tax professional or visit the GST website for more information.
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