GST RATES & HSN CODE 1107 - MALT

The Goods and Services Tax (GST) is a comprehensive indirect tax that has replaced various indirect taxes in India. The GST rates and HSN codes for goods and services are different, and it is essential to know them to ensure compliance with the law.

One such product that falls under the GST regime is Malt. In this article, we will discuss the GST rates and HSN code for Malt and how it impacts small and medium businesses.

What is Malt?

Malt is a grain that has undergone a process of germination and then been dried in a kiln. It is commonly used in the brewing of beer and whiskey, but it can also be used in baking and other food preparations. Malt is available in various forms, including malt extract, malt syrup, and malt powder.

GST Rates for Malt

Malt falls under the HSN Code 1107, which covers malt, whether or not roasted. The GST rates for Malt are as follows:

5% GST for Malt extract, food preparations containing malt extract, and malt extract-based powders
12% GST for malt, whether or not roasted

It is essential to note that if Malt is used in the production of beer or whiskey, then GST rates for these products will also apply. It means that if a small or medium business uses Malt in the production of beer or whiskey, then they need to pay GST on the final product as well.

Impact on Small and Medium Businesses

Small and medium businesses that use Malt in their production process need to be aware of the GST rates and HSN code for their product. Failing to do so can lead to non-compliance with the law and attract penalties and fines.

Moreover, the GST rates and regulations are subject to change, and businesses need to keep themselves updated with the latest updates. It is recommended to consult with a tax consultant or expert if they have any doubts or queries regarding the GST rates and HSN codes for their product.

Conclusion

Understanding the GST rates and HSN code for Malt is essential for small and medium businesses that use it in their production process. It helps them comply with the law and avoid any penalties or fines. Businesses should keep themselves updated with the latest regulations and consult with experts if they have any doubts or queries.