GST Rates and HSN Code for Omitted Goods

Goods and Services Tax (GST) is a comprehensive tax system that has made a significant impact on the Indian economy. It has replaced all the indirect taxes that were levied earlier and brought in a unified taxation system. GST has been implemented in India since July 2017, and it has undergone several changes and amendments since then.

One such change was the introduction of GST rates and HSN code for omitted goods. In this article, we will discuss everything you need to know about GST rates and HSN code for omitted goods.

What are Omitted Goods?

Omitted goods are the items that were not included in the GST regime earlier. The government has now introduced a new list of goods that are taxable under GST. These goods were omitted earlier, but now they have been included in the GST system.

The introduction of GST rates and HSN code for omitted goods has made it easier for businesses to comply with the taxation system. The new system has also ensured that all the goods are taxed uniformly, and there are no discrepancies in the tax rates.

What is HSN Code?

HSN stands for Harmonized System of Nomenclature. It is an international system of classifying goods that are traded across borders. HSN codes are used to classify goods for taxation purposes. Every product is assigned a unique HSN code, which helps in the identification of the product and determining the applicable GST rate.

HSN codes have been in use in India since 1986, and they have been updated to suit the GST system. The HSN code for a product is usually eight digits long, and it is based on the description of the product.

What are GST Rates?

GST rates are the rates at which goods and services are taxed under the GST system. There are four types of GST rates - 5%, 12%, 18%, and 28%. The GST rate for a product is determined based on its HSN code.

The GST rates for omitted goods are the same as the rates for other goods. The government has not introduced any new tax rates for omitted goods. The existing tax rates are applicable to these goods as well.

HSN Code and GST Rates for Omitted Goods

The government has released a list of omitted goods and their applicable HSN codes and GST rates. Here is the list of omitted goods and their HSN codes and GST rates:

Sl. No. Goods HSN Code GST Rate

1 Condoms and contraceptives 401412%

2 Sanitary napkins 96190%

3 Fuel cell vehicles 870312%

4 Alcoholic liquor for human consumption 220418%

How to Determine the HSN Code and GST Rate for a Product?

Determining the HSN code and GST rate for a product can be a challenging task. However, there are a few guidelines that businesses can follow to ensure that they are paying the correct amount of tax:

1. Check the government's list of HSN codes and GST rates for the product.

2. If the product is not listed, determine the HSN code based on the product's description and determine the GST rate based on the product's category.

3. If there is still confusion, consult a tax expert or an accountant.

Conclusion

The introduction of GST rates and HSN code for omitted goods has made the taxation system more uniform and transparent. Businesses can now comply with the GST system more easily, and the government can ensure that all the goods are taxed uniformly. It is essential for businesses to understand the HSN code and GST rate of the products they deal with to ensure that they are paying the correct amount of tax.