Yarn of combed wool is a key raw material for many industries, including textiles, clothing, and fashion. The Indian government has introduced a Goods and Services Tax (GST) system that applies to all goods and services. This article will provide a detailed overview of GST rates and HSN code for yarn of combed wool.
GST is a comprehensive indirect tax that has replaced several indirect taxes in India, including Value Added Tax (VAT), Service Tax, and Central Excise Duty. All businesses in India are required to register for GST, and the tax is collected at every stage of the supply chain.
The GST system has made it easier for businesses to comply with tax regulations, as it simplifies the tax structure and removes the cascading effect of multiple taxes. It has also helped to streamline the supply chain and improve the overall efficiency of the economy.
HSN stands for Harmonized System of Nomenclature, and it is an internationally accepted system of names and numbers for classifying goods. The HSN code consists of a six-digit code that is used to identify products for taxation purposes.
The HSN code for yarn of combed wool is 5107.
Under the GST system, yarn of combed wool is classified as a textile product, and it is subject to a GST rate of 5%. This GST rate applies to all types of yarn of combed wool, including carded or combed, single or multiple, twisted or untwisted.
It is important to note that the GST rate for yarn of combed wool varies depending on the type of yarn. For example, the GST rate for silk yarn is 5%, while the GST rate for jute yarn is 12%.
The introduction of the GST system has had a significant impact on the textile industry in India. The removal of multiple taxes and the simplification of the tax structure has helped to reduce the cost of production and improve the profitability of textile companies.
However, the implementation of the GST system has also created some challenges for the textile industry. The complex rules and regulations surrounding GST compliance have made it difficult for small and medium-sized businesses to adapt to the new tax system.
In conclusion, yarn of combed wool is subject to a GST rate of 5%, and it is classified under the HSN code 5107. The introduction of the GST system has had a significant impact on the textile industry in India, and while it has helped to simplify the tax structure and reduce costs, it has also created some challenges for businesses. It is important for businesses in the textile industry to stay up to date with the latest GST regulations and compliance requirements to ensure that they remain competitive in the market.
Rectification/Amendment of GST Returns (GSTR 3B and GSTR 1)
Ideas for How to start a Grocery Store Business in India?
What is the ITR 5 and How Can You File it?