India has a Goods and Services Tax (GST) system that replaced several indirect taxes. GST is divided into four tax brackets: 5%, 12%, 18%, and 28%. Laboratory equipment falls under the 18% tax bracket as per Notification No. 01/2017-Central Tax (Rate) dated 28th June 2017.
Laboratory equipment is classified under HSN Code 8419. HSN codes are a standardized system of classifying goods and services for taxation purposes. HSN stands for Harmonized System of Nomenclature.
HSN Code 8419 is used to classify machinery, plant or laboratory equipment, whether or not electrically heated, for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, non-electric.
In simpler terms, HSN Code 8419 is used to classify laboratory equipment that is used for processes that involve a change of temperature, such as heating, cooling, or drying.
1. Laboratory ovens
5. Distillation apparatus
6. Water baths
Understanding the GST rates and HSN codes for laboratory equipment is crucial for small and medium business owners and startup founders. Lack of knowledge about the tax regulations can lead to non-compliance and hefty fines. It is the responsibility of the business owner to ensure that the equipment is classified correctly under the HSN code and the correct GST rate is applied.
Moreover, understanding the GST rates and HSN codes for laboratory equipment can help business owners estimate the tax amount and budget accordingly.
Laboratory equipment is an essential tool for conducting experiments and research in various fields. As per Notification No. 01/2017-Central Tax (Rate), laboratory equipment falls under the 18% tax bracket. HSN Code 8419 is used to classify laboratory equipment that is used for processes that involve a change of temperature. It is important for business owners to understand the GST rates and HSN codes for laboratory equipment to ensure compliance with tax regulations and budget accordingly.
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