India is one of the largest producers of rice, with the crop being cultivated all over the country. Rice is an essential staple food in India, and to ensure that there is no ambiguity regarding the tax rates applicable to the crop, the government of India introduced the Goods and Services Tax (GST). Under the GST regime, different products and services are taxed based on their Harmonized System of Nomenclature (HSN) codes. In this article, we will explore the HSN code and GST rates applicable to rice.
The Harmonized System of Nomenclature (HSN) code is an internationally recognized system of names and numbers that classify goods for customs and trade purposes. The HSN code is used to determine the tax rates applicable to a product under the GST regime. In India, the HSN code consists of eight digits. The first two digits indicate the chapter under which the product falls, and the next two digits indicate the heading. The following four digits provide a detailed description of the product.
The HSN code for rice is 1006. This HSN code is used for all varieties of rice, including Basmati, non-Basmati, and parboiled rice. The HSN code is applicable to both raw and processed rice.
The GST rates for rice depend on whether the rice is branded or unbranded. The GST rates for rice are as follows:
It is essential to note that the GST rate for rice is different from the GST rate for products used in the processing of rice. For example, the GST rate for husked rice is 5%, while the GST rate for rice bran is 18%.
In conclusion, the HSN code for rice is 1006, and the GST rates for rice depend on whether the rice is branded or unbranded. Unbranded rice attracts a 0% GST rate, while branded rice attracts a 5% GST rate. It is essential to ensure that the correct HSN code and GST rate are applied while invoicing rice to avoid any confusion or legal issues.
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