Polishes and creams for various applications such as footwear, furniture, and floors are essential for maintaining and enhancing their appearance. However, the GST rates and HSN codes for these products can be confusing for small and medium business owners and startup founders in India.
In this article, we will discuss the GST rates and HSN codes for polishes and creams for footwear, furniture, and floors. We will also provide insights on how to determine the correct HSN code for your product and how to calculate the GST rates applicable to it.
HSN stands for Harmonized System of Nomenclature, which is a system of classifying goods based on their characteristics, components, and uses. The HSN code consists of eight to ten digits, where the first two digits represent the chapter, the next two digits represent the heading, and the last two digits represent the subheading.
HSN codes are used for identifying goods for taxation purposes, including GST. Every product that is traded in India must have an HSN code.
The GST rates for polishes and creams for footwear, furniture, and floors fall under the 18% tax bracket. This is the standard GST rate for most goods and services in India.
However, there are some exceptions to this rule. For example, if the product is classified as a luxury item, such as a premium shoe polish, it may attract a higher GST rate of 28%. On the other hand, if the product is classified as a necessity, such as a floor polish, it may attract a lower GST rate of 12%.
The GST rates for polishes and creams for footwear, furniture, and floors are subject to change based on the decisions of the GST Council. Therefore, it is important to keep yourself updated on the latest GST rates and regulations.
The HSN codes for polishes and creams for footwear, furniture, and floors depend on the specific application and composition of the product. Here are some of the common HSN codes for these products:
It is important to note that the HSN code for a product is not fixed and may vary based on the specific characteristics of the product. Therefore, it is advisable to consult with a tax expert or use the GSTN portal to determine the correct HSN code for your product.
The GST rates for polishes and creams for footwear, furniture, and floors can be calculated using the following formula:
GST amount = (Product cost x GST rate) / 100
For example, if the cost of a shoe polish is Rs. 100 and the GST rate is 18%, the GST amount would be:
GST amount = (100 x 18) / 100 = Rs. 18
Therefore, the total cost of the shoe polish would be Rs. 118 (excluding any other taxes or charges).
Polishes and creams for footwear, furniture, and floors are important products for maintaining and enhancing their appearance. Understanding the GST rates and HSN codes for these products is essential for small and medium business owners and startup founders in India.
In summary, the GST rates for polishes and creams for footwear, furniture, and floors fall under the 18% tax bracket, but may vary based on the product's classification. The HSN codes for these products depend on the specific application and composition of the product, and may vary based on the characteristics of the product. To calculate the GST rates applicable to your product, use the formula discussed in this article.
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