As a small or medium business owner or startup founder in India, it is important to understand the various GST rates and HSN codes that apply to your business. In this article, we will be taking a closer look at the GST rates and HSN code for 'Other' products and services.
HSN stands for Harmonized System of Nomenclature. It is an internationally recognized classification system for products and services. The HSN code is a six-digit code that is used to classify goods and services for tax purposes. In India, the HSN code is used for Goods and Services Tax (GST) purposes.
GST is a comprehensive tax system that was introduced in India in 2017. It replaced multiple indirect taxes such as service tax, excise duty, and VAT. Under the GST system, products and services are classified into four tax slabs - 5%, 12%, 18%, and 28%. There are also some products and services that are exempt from GST.
Products and services that do not fall under any specific category are classified as 'Other' and are assigned an HSN code of 5100. The GST rates for 'Other' products and services are as follows:
1. 5% GST - This rate is applicable to products like agarbatti, hearing aids, and insulin.
2. 12% GST - This rate is applicable to products like baby carriages, handbags, and musical instruments.
3. 18% GST - This rate is applicable to products like cameras, generators, and watches.
4. 28% GST - This rate is applicable to products like luxury cars, yachts, and cigarettes.
It is important to note that the GST rates and HSN codes are subject to change. As a business owner, it is important to stay updated with any changes in the tax system.
Understanding the GST rates and HSN codes is crucial for business owners and startup founders in India. It helps in the proper classification of products and services for tax purposes. The 'Other' category, with HSN code 5100, is a catch-all category for products and services that do not fall under any specific category. The applicable GST rates for this category range from 5% to 28%.
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