Terry Towelling is a popular fabric known for its absorbent properties. It is commonly used in towels, bathrobes, and other absorbent items. In India, Terry Towelling is classified under HSN code 5802 and is subject to GST rates based on its value.
The Harmonized System of Nomenclature (HSN) is an internationally recognized system used to classify goods. In India, Terry Towelling falls under HSN code 5802, which covers "Terry Towelling and Similar Woven Terry Fabrics."
The HSN code for Terry Towelling is important for determining the appropriate GST rate for the fabric. It also helps in keeping track of the import and export of Terry Towelling. Businesses dealing in Terry Towelling must be aware of the HSN code and GST rates applicable to them.
The GST rates for Terry Towelling depend on the value of the fabric. As of July 2021, the GST rates for Terry Towelling are as follows:
1. 5% GST on Terry Towelling with a value of up to Rs. 1000 per piece
2. 12% GST on Terry Towelling with a value of more than Rs. 1000 per piece
It is important to note that GST rates are subject to change as per the government's notification. Businesses dealing in Terry Towelling must stay updated with the latest GST rates to avoid any discrepancies in their tax filings.
The GST calculation for Terry Towelling is based on the value of the fabric. To calculate GST, businesses must follow the below formula:
GST amount = (Terry Towelling value x GST rate)/100
For example, if the value of Terry Towelling is Rs. 1200, the GST amount will be calculated as follows:
GST amount = (1200 x 12)/100 = Rs. 144
The total amount to be paid will be the sum of the value of Terry Towelling and the GST amount, i.e., Rs. 1200 + Rs. 144 = Rs. 1344.
HSN code and GST rates for Terry Towelling are crucial for businesses dealing in the fabric. The HSN code helps in identifying the fabric, while the GST rates ensure that businesses pay the appropriate tax amount. Businesses must stay updated with the latest GST rates to avoid any discrepancies in their tax filings. With this information, businesses can accurately calculate and pay the GST amount on their Terry Towelling transactions.
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