Are you a small or medium business owner or a startup founder dealing with mica products? Do you know what GST rates and HSN code apply to mica splittings waste? If not, read on to learn more about this topic.
Mica is a mineral that is commonly used in various industries due to its unique properties. It is widely used in the electrical industry as insulation for electrical equipment and as a filler in plastics, rubber, and paint. It is also used in the beauty industry as a shimmering agent in cosmetics and in the construction industry as a fire-resistant material.
Mica splittings waste is a byproduct of the mica mining and manufacturing process. It consists of small pieces of mica that are too small to be used in the production of mica products. Mica splittings are also known as mica scrap or mica flakes.
Under the Goods and Services Tax (GST) regime, mica, splittings, and waste are classified under HSN code 2525. The GST rate for mica, splittings, and waste is 5%. However, there are some exceptions to this rate for certain types of mica products.
For example, if the mica products are sold in the form of sheets or plates, the GST rate is 18%. This is because mica sheets and plates are considered to be finished products rather than raw materials.
Another exception to the 5% rate is for mica powder, which is classified under HSN code 2525 20. The GST rate for mica powder is 12%.
Knowing the GST rates and HSN code for mica, splittings, and waste can help small and medium business owners and startup founders who deal with mica products to better understand the tax implications of their business operations. Mica is a versatile mineral that is widely used in various industries, and understanding its classification under the GST regime is essential for smooth business operations.
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