As an SME owner or startup founder in India, you may be involved in the manufacturing, production or trading of synthetic staple fibres. This is a product that is used in various industries, including textiles, apparel, and automotive industries, among others. If this is the case, it is crucial to understand the GST rates and HSN code for yarn of synthetic staple fibres.
The Harmonized System of Nomenclature or the HSN code is a classification system used to identify products for taxation purposes. In India, the HSN code is used for the classification of goods and services for the purposes of GST. For yarn of synthetic staple fibres, the HSN code is 5509.
The GST rates for yarn of synthetic staple fibres vary based on the type of fibre and the denier count. The GST rates for different types of synthetic staple fibres are as follows:
1. 18% GST on man-made fibres such as polyester, nylon, and viscose
2. 12% GST on acrylic fibres
3. 5% GST on polypropylene fibres
It is important to note that these GST rates are subject to change, and it is recommended to stay updated with the latest GST rates by visiting the official GST website or consulting with a tax professional.
The introduction of GST has had a significant impact on the yarn of synthetic staple fibres industry in India. The GST rates and HSN code have helped to streamline the taxation process and reduce the complexity of the tax system. However, the high GST rates on man-made fibres such as polyester, nylon, and viscose have made it more expensive to produce and trade these fibres. This has led to a reduction in demand and an increase in the cost of synthetic staple fibres.
In conclusion, understanding the GST rates and HSN code for yarn of synthetic staple fibres is crucial for SME owners and startup founders involved in the production or trading of these fibres. The HSN code for yarn of synthetic staple fibres is 5509, and the GST rates vary based on the type of fibre and the denier count. To stay updated with the latest GST rates, it is recommended to visit the official GST website or consult with a tax professional.
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