Postage stamps have been used for over a century as a means of payment for postal services. They are adhesive postage labels issued by the government, post office or authorized postal administration, to be attached to items of mail to show the payment of postage. With the implementation of the Goods and Services Tax (GST) in India, the GST rates and HSN code for postage stamps have also been revised.
Under the GST regime, postage stamps are classified under Chapter 97 of the Harmonized System of Nomenclature (HSN) code, which relates to works of art, collectors’ pieces and antiques. The GST rate for postage stamps is 0%, which means that they are exempted from GST.
It is important to note that while the postage stamps themselves are exempted from GST, the postal services that they are used for are not exempted. Postal services are subject to GST at the rate of 18%.
The HSN code for postage stamps is 9704. This code falls under Chapter 97 of the HSN, which relates to works of art, collectors’ pieces and antiques. The HSN code for postage stamps is used to identify them in the GST registration process.
Postage stamps are an essential part of the postal system, and their exemption from GST makes it easier for people to use postal services without any additional burden. However, it is important to note that the postal services themselves are subject to GST at the rate of 18%. Business owners and startup founders dealing with postage stamps must keep in mind the HSN code 9704 for the correct identification of their products in the GST registration process.
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