Monday, May 20

General Store HSN Code

When it comes to managing a general store, having a solid understanding of the many taxes and regulations that are relevant is absolutely necessary. The Harmonised System of Nomenclature, also known as the HSN Code, is an example of this type of code.

In this article, we are going to take a more in-depth look at the HSN Codes as well as the GST rates that are relevant to general retailers.

What is an HSN Code?

The abbreviation for “Harmonised System of Nomenclature Code” is “HSN code.” It is a method of classifying items used in international trade that utilises both names and numbers and is recognised on a global scale. The HSN system is used to identify and classify commodities based on the type of the goods, their composition, and the purpose for which they are being utilised.

Why is it important for General Stores to know HSN Codes?

The HSN Codes are extremely important for general retailers since they are used to establish the GST rate that applies to the products that are sold. It is essential to have a thorough understanding of the HSN Code assigned to each product in order to avoid any confusion or mistakes in the calculation of taxes. Incorrect use of the HSN code can lead to financial penalties as well as potential legal complications.

In the case of General Stores, the HSN Codes and GST Rates That Apply:

Let’s take a look at some of the more typical things that are offered in general stores together with their HSN Codes and the GST rates that apply to them.

The following are examples of food items

a) fresh fruits and vegetables: HSN Code – 0702, GST Rate – 0%

b) Lentils and cereals: HSN Code: 1001; GST Rate: 5%

b) Spices: HSN Code – 0909, GST Rate – 5%

c) Edible oils: HSN Code – 1518, GST Rate – 5%

Household items

a) Janitorial goods have the HSN code of 3402 and an 18% GST rate.

b) Kitchenware: HSN Code – 7323, GST Rate – 18%

c) Furniture: HSN Code – 9403, GST Rate – 18%

Personal care items

a) Shampoo and soap: HSN Code 3401, GST Rate 18%; these are considered to be personal care items.

b) Toothpaste and other oral hygiene products: HSN Code: 3306, GST Rate: 18%

b) Fragrances and cosmetics: HSN Code: 3304; GST Rate: 18%

Electronics

a) Mobile phones: HSN Code 8517, GST Rate 18%; this category falls under the category of electronics

b) Personal computers and portable computing devices: HSN Code: 8471; GST Rate: 18%

c) Televisions: GST Rate of 18% and HSN Code 8528

Conclusion

HSN Codes are an essential component in the process of operating a general store. By properly applying HSN Codes, one can ensure that the appropriate GST rates are utilised, hence avoiding any potential fines or other legal complications. It is absolutely necessary to be current on the most recent HSN Codes and GST rates that are applicable to a variety of products. If you own a general store, it is important for you to remain knowledgeable about HSN Codes and GST rates so that you can run your business effectively and efficiently.

Also read about GSTR-3b Due Date for FY 2020-21

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