If you're a small or medium business owner or a startup founder in India, you're likely familiar with the Goods and Services Tax (GST). GST is a value-added tax levied on most goods and services sold for domestic consumption in India. It replaced the multiple taxes levied by the central and state governments, making the taxation process simpler and more efficient.
One of the significant advantages of GST is that it provides a harmonized system of nomenclature (HSN) code for goods and services. HSN codes are unique six-digit numbers that classify goods and services under different tax brackets. This system helps in the proper identification of goods and services while imposing the GST.
Mate is a traditional South American drink made by steeping dried leaves of the yerba mate plant in hot water. This beverage is widely popular in South American countries and is starting to gain popularity in India as well. Mate is known for its unique flavor and numerous health benefits.
As per the GST council, mate falls under the category of "Tea, Coffee, Mate, and Spices." The applicable GST rate for mate is 5% of the transaction value.
HSN code for mate is 903. It is classified under chapter 9, which includes coffee, tea, mate, and spices.
Understanding GST rates and HSN codes is crucial for businesses selling mate in India. It helps in the proper classification of goods, ensures compliance with the GST laws, and simplifies tax calculations. It also helps in availing of input tax credit and avoiding any penalties for non-compliance.
Knowing the GST rates and HSN code for mate is essential for any business owner selling this product in India. The correct classification of goods helps in proper tax calculations, compliance with the GST laws, and availing input tax credit. We hope this guide has provided you with the necessary information on GST rates and HSN code for mate.
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