Raw silk, also known as 'Kosa', is a natural fiber that is obtained from the cocoons of the silkworm. It is commonly used to make sarees, dress materials, scarves, and other clothing items. As a small or medium business owner in India, it is crucial to understand the GST rates and HSN code applicable to raw silk, as it can impact your business operations and taxes. This article provides an overview of the same.
HSN stands for Harmonized System of Nomenclature, and it is a globally accepted system for classifying goods based on their nature, composition, and use. The HSN code helps in identifying the applicable GST rates for a particular product, making it easier for businesses to comply with the tax regulations. In India, the HSN code for raw silk is 5002.
The GST rates for raw silk vary depending on the type of silk and whether it is processed or unprocessed. The applicable GST rates and HSN codes for different types of raw silk are as follows:
1. 5% GST rate
2. HSN code: 5002
1. 18% GST rate
2. HSN code: 5002
1. 5% GST rate
2. HSN code: 5002
1. 5% GST rate
2. HSN code: 5002
1. 5% GST rate
2. HSN code: 5002
As a small or medium business owner dealing with raw silk, understanding the applicable GST rates and HSN code is crucial for complying with tax regulations and avoiding penalties. It is also essential for calculating the taxes payable and claiming input tax credits on raw silk purchases. By knowing the GST rates and HSN code, businesses can accurately calculate their product costs, pricing, and profit margins, thereby ensuring sustainable business growth.
Raw silk is a vital commodity for small and medium businesses in India. Understanding the GST rates and HSN code applicable to raw silk is crucial for complying with tax regulations and ensuring sustainable business growth. With the information provided in this article, small and medium businesses can make informed decisions regarding their raw silk operations and taxes.
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