Understanding HSN Code 902 is as important for everyone involved in the import, export, or trade of tea as heating water for ideal cup. This seemingly simple code opens up a world of laws and tax rates, and deciphering it might seem like completing a complex puzzle. Fear not, tea drinkers and business brains alike, since this thorough guide will explain HSN Code 902, teach you about its complexities, and lead you through the taxing environment with ease.
HSN Code 902 includes "tea" flavored as well as non-flavored. This category contains everything from black tea and green tea to flavored teas like lemonade and masala chai. The HSN 902 code is standardized globally for customs categorization and trade facilitation of all the types of tea in the world, providing uniformity across borders.
While HSN Code 902 covers most tea varieties, it excludes a few notable categories:
1. Tea extracts, essences, and concentrates: These fall under HSN Code 2103.
2. Maté: This South American herb has its own dedicated HSN code, 903.
3. Mixtures of fruits, flowers, and herbs.
Understanding the applicable GST rates is crucial for accurate tax compliance. HSN Code 902 has different rates depending on the type and packaging of the tea:
1. Black Tea and Partly Fermented Tea:
Loose or in immediate packing of content not exceeding 3 kg: 5% GST (includes both CGST and SGST)
Exceeding 3 kg but not exceeding 10 kg: 5% GST
Exceeding 10 kg: 5% GST
2. Green Tea (Not Fermented):
In immediate packing of content not exceeding 25 g: 5% GST
Exceeding 25 g but not exceeding 1 kg: 5% GST
Exceeding 1 kg but not exceeding 3 kg: 5% GST
Exceeding 3 kg: 5% GST
1. These rates are as of January 2024 and are subject to change.
2. Always refer to the latest official updates from the Ministry of Finance or GST portal for accurate tax information.
3. Some states may levy additional GST or cesses on top of the central GST rates.
HSN Code 902 and its corresponding GST rates have significant implications for the Indian tea industry:
1. Standardization and Transparency: The code brings uniformity to tea classification, facilitating smooth trade and tax compliance. Furthermore, GST rates provide pricing transparency for both manufacturers and customers, promoting fair competition in the business. The uniform classification also aids in the tracking and monitoring of the tea market, allowing industry players to conduct more accurate analyses and planning.
2. Impact on Pricing: GST rates in certain categories might have an impact on the retail price of various tea kinds. For example, increasing GST rates for luxury teas may result in a rise in retail prices, making them less affordable for some consumers. However, reducing GST rates for basic teas may make them more affordable to a larger variety of consumers. This may have a direct influence on demand and consumption patterns in the Indian tea business.
3. Opportunities for Growth: Clear tax standards enable tea firms to better understand their financial commitments and plan their investments appropriately. This may result in expanded production capacity, enhanced infrastructure, and the development of new employment in the sector. A stable tax environment can also attract overseas investment, boosting development and innovation in the tea industry.
HSN Code 902 may appear to be a confusing string of digits, but with better knowledge, it becomes a useful tool for managing tea taxation in India. Businesses and people involved in the tea trade may maintain efficient operations and contribute to a vibrant sector by remaining up to date on the latest prices and regulations.
Hydrometers Thermometers – GST Rates HSN Code 9025
