India is one of the largest producers of potatoes in the world, accounting for over 20% of the global production. As a staple food ingredient, potatoes are used in various forms across the country. However, when it comes to the GST rates and HSN code for potatoes, it can be a bit confusing for small and medium business owners and startup founders. In this article, we'll dive into the details of GST rates and HSN code for potatoes, and help you understand the nuances of the system.
First, let's talk about the GST rates. Currently, potatoes are exempted from GST. This means that there is no GST applicable on the sale or purchase of potatoes, whether fresh or chilled, cooked or uncooked, whole or cut into pieces. This exemption was introduced in 2017, with the aim of keeping the prices of potatoes stable and affordable for the general public.
Now, let's move on to the HSN code. HSN stands for Harmonized System of Nomenclature, and is a globally accepted system for classifying goods based on their nature, composition, and use. The HSN code for potatoes is 0701.
Here's a breakdown of the HSN code 0701:
So, whenever you are selling or purchasing potatoes, you will use the HSN code 0701. This code is important for various reasons, including:
So, there you have it - everything you need to know about GST rates and HSN code for potatoes. As a small and medium business owner or startup founder, it's important to be aware of the tax implications of your business activities. By understanding the nuances of the GST system, you can ensure that you are compliant with the law, and avoid any unnecessary penalties or fines.
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