Understanding GST Rates and HSN Code for Ethyl Alcohol and Other Spirits

India's Goods and Services Tax (GST) has been in effect since July 1, 2017, and is aimed at streamlining the tax structure by removing cascading effects, ensuring a smooth flow of goods and services across the country. Ethyl alcohol and other spirits fall under the GST code 2207, and understanding the GST rates and HSN code for these products is essential for business owners in the alcohol industry.

GST Rates for Ethyl Alcohol and Other Spirits

As per the GST council's decision, the GST rates for ethyl alcohol and other spirits are as follows:

Product GST Rate Undenatured ethyl alcohol of alcoholic strength by volume of 80% vol. and above; ethyl alcohol and other spirits, denatured, of any strength18% Undenatured ethyl alcohol of alcoholic strength by volume of less than 80% vol.; spirits, liqueurs and other spirituous beverages12%

It's important to note that the GST rates for these products are subject to change based on decisions made by the GST council. Business owners in the alcohol industry should keep up with these changes to avoid any compliance issues.

HSN Code for Ethyl Alcohol and Other Spirits

The Harmonized System of Nomenclature (HSN) code for ethyl alcohol and other spirits is 2207. It is a globally standardized system of names and numbers used to classify products for trade purposes. The HSN code for these products is used to determine GST rates, and is essential when filing GST returns and invoices.

For example, if a business owner is selling ethyl alcohol with an alcoholic strength by volume of 80% vol. and above, the HSN code for the product would be 2207 10 10. If a business owner is selling liqueurs with an alcoholic strength by volume of less than 80% vol, the HSN code would be 2208 90 90.

Conclusion

Business owners in the alcohol industry must ensure they understand the GST rates and HSN code for ethyl alcohol and other spirits to stay compliant with GST regulations. It's crucial to stay up-to-date with any changes in GST rates and HSN codes to avoid penalties and fines. By following the above information, business owners can ensure a smooth and hassle-free experience while dealing with ethyl alcohol and other spirits under GST regulations.