Other Fermented Beverages - GST Rates HSN Code 2206

Running a small or medium-sized business is an enormous task that requires considerable effort, time, and patience. One of the most significant challenges that business owners face is understanding the complicated tax system in India. Goods and Services Tax (GST) is a comprehensive tax system implemented in the country on July 1, 2017. It has replaced several indirect taxes like excise duty, VAT, and service tax. Understanding GST rates and HSN codes is essential for all small and medium business owners, especially those in the food and beverage industry.

What are Other Fermented Beverages?

Other fermented beverages are non-alcoholic beverages made by fermenting fruits, vegetables, and grains. Fermentation is a natural process that involves the conversion of sugars into alcohol or organic acids by microorganisms like yeast, bacteria, and fungi. Other fermented beverages are classified under HSN code 2206.

GST Rates for Other Fermented Beverages

The GST rates for other fermented beverages depend on the alcohol content of the beverage. The GST rates for other fermented beverages are as follows:

1. Non-alcoholic fermented beverages - 12%

2. Fermented beverages with an alcohol content of less than 1.5% - 12%

3. Fermented beverages with an alcohol content of more than 1.5% but less than 5% - 18%

4. Fermented beverages with an alcohol content of 5% or more - 21%

It's important to note that GST rates for other fermented beverages are subject to change based on government policies and regulations.

HSN Code for Other Fermented Beverages

HSN code is a six-digit code that is used to classify goods and services under GST. The HSN code for other fermented beverages is 2206. HSN code 2206 comes under chapter 22, which is for beverages, spirits, and vinegar.

Conclusion

Understanding GST rates and HSN codes is vital for small and medium business owners in India. Other fermented beverages are non-alcoholic beverages made by fermenting fruits, vegetables, and grains. The GST rates for other fermented beverages depend on the alcohol content of the beverage. The HSN code for other fermented beverages is 2206. Business owners must stay updated with government policies and regulations regarding GST rates and HSN codes for their business to run smoothly.