Wheat gluten is a protein product derived from wheat flour, and is used in a variety of food products such as bakery goods, pasta, and meat substitutes. With the implementation of GST (Goods and Services Tax) in India, it is important for small and medium business owners and startup founders to understand the GST rates and HSN code for wheat gluten.
Wheat gluten falls under the category of edible preparations, and is classified under HSN code 1109. The GST rate for wheat gluten is 5%, as per the GST council's decision on 18th May 2017.
It is important to note that the GST rate for different types of wheat gluten may vary. For example, wheat gluten in its natural state is exempted from GST, while wheat gluten that has been modified or treated is classified under the 5% GST rate.
HSN (Harmonized System of Nomenclature) codes are used to classify goods under the GST system. The HSN code for wheat gluten is 1109, and falls under the broader category of edible preparations.
It is important for small and medium business owners and startup founders to correctly classify their products under the appropriate HSN code, as this determines the GST rate applicable to their products. Incorrect classification can lead to penalties and legal issues.
Understanding the GST rates and HSN code for wheat gluten is crucial for businesses involved in the production or sale of food products that contain wheat gluten. Business owners should ensure that their products are correctly classified under the appropriate HSN code, and that the applicable GST rate is being applied.
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