Tomatoes are one of the most widely used vegetables in the Indian cuisine. They are used in a variety of dishes including salads, curries, and sauces. It is important for small and medium business owners and startup founders to know the GST rates and HSN code for tomatoes to ensure compliance with the law.
Tomatoes fall under the category of vegetables and are taxed accordingly under the Goods and Services Tax (GST). The GST rates for tomatoes are as follows:
1. Fresh tomatoes - 0%
2. Dried tomatoes - 5%
3. Tomato paste and puree - 12%
It is important to note that the GST rates for tomatoes can vary based on the state and the type of product. For example, tomato ketchup falls under the category of sauces and not vegetables, and is taxed at a different rate.
The Harmonized System of Nomenclature (HSN) code is a system of classification used to identify and classify goods for taxation purposes. The HSN code for tomatoes falls under the category of vegetables and is 2002.
The HSN code for tomatoes can be further classified based on the type of product. For example, dried tomatoes fall under the sub-heading of 200290 and tomato paste and puree fall under the sub-heading of 20029030.
Knowing the GST rates and HSN code for tomatoes can have several benefits for small and medium business owners and startup founders. Some of these benefits include:
1. Ensuring compliance with the law
2. Helping with tax planning and budgeting
3. Facilitating smooth and hassle-free tax filing
4. Reducing the risk of penalties and fines
In conclusion, tomatoes are an important vegetable in the Indian cuisine and understanding the GST rates and HSN code for tomatoes is essential for small and medium business owners and startup founders. Knowing the correct rates and codes can help ensure compliance with the law, facilitate smooth tax filing, and reduce the risk of penalties and fines.
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