Gst Rate on Makhana
This query is : Resolved
Quick Summary
05 December 2020
Dear Sir,
My one client has just started business of selling Makhana. He usually sold the makhana in packets.He sell his makhana without any registered brand name. I have little difficulty in understanding explanation given in chapter rate regarding rate of gst to be charged.
Please help.
My one client has just started business of selling Makhana. He usually sold the makhana in packets.He sell his makhana without any registered brand name. I have little difficulty in understanding explanation given in chapter rate regarding rate of gst to be charged.
Please help.
27 December 2020
I think the rate of GST is 12% on Butter and other fats (i.e. ghee, butter oil, etc.) and oils derived from milk; dairy spreads
02 January 2021
Need an expert opinion.
27 July 2024
Certainly! Understanding the GST rate for specific products can sometimes be confusing. Here’s a breakdown of the GST rate applicable to makhana:
### GST Rate on Makhana
**Makhana** (fox nuts or lotus seeds) is classified under the GST regime based on its use and processing. Here's how GST applies:
1. **Unbranded Makhana:**
- **HSN Code:** 0713
- **GST Rate:** **5%** (This rate applies to unbranded or non-packaged makhana.)
2. **Packaged Makhana:**
- **HSN Code:** 2008
- **GST Rate:** **12%** (This rate generally applies if the makhana is packaged and sold under a brand name.)
### Key Points:
- **Unbranded vs. Packaged:**
- Since your client sells makhana in packets but without a registered brand name, the applicable GST rate is **12%** if it is sold in a packaged form. The GST rate of **5%** is typically applied to loose, unpackaged makhana or where the product is not marketed as a branded packaged product.
- **Classification:**
- Makhana is usually classified under the HSN code **0713** for loose or unbranded products and under **2008** if it is packaged.
### Documentation and Compliance:
- **Invoices:** Ensure proper GST invoices are issued reflecting the correct HSN code and GST rate.
- **HSN Code:** Use **0713** or **2008** based on the packaging status when filing GST returns.
- **Tax Credit:** Keep records of GST paid on inputs if your client is eligible to claim input tax credit.
### Recommendations:
1. **Verify with GST Authorities:** Given the nuances of GST, it's always a good idea to verify the applicable GST rate with the local GST authorities or a tax professional to ensure compliance with the latest regulations.
2. **Consult a Tax Professional:** For tailored advice based on specific business practices and packaging, consult a GST consultant to ensure accurate application of GST rates.
By following these guidelines, your client should be able to apply the correct GST rate for their makhana products.
### GST Rate on Makhana
**Makhana** (fox nuts or lotus seeds) is classified under the GST regime based on its use and processing. Here's how GST applies:
1. **Unbranded Makhana:**
- **HSN Code:** 0713
- **GST Rate:** **5%** (This rate applies to unbranded or non-packaged makhana.)
2. **Packaged Makhana:**
- **HSN Code:** 2008
- **GST Rate:** **12%** (This rate generally applies if the makhana is packaged and sold under a brand name.)
### Key Points:
- **Unbranded vs. Packaged:**
- Since your client sells makhana in packets but without a registered brand name, the applicable GST rate is **12%** if it is sold in a packaged form. The GST rate of **5%** is typically applied to loose, unpackaged makhana or where the product is not marketed as a branded packaged product.
- **Classification:**
- Makhana is usually classified under the HSN code **0713** for loose or unbranded products and under **2008** if it is packaged.
### Documentation and Compliance:
- **Invoices:** Ensure proper GST invoices are issued reflecting the correct HSN code and GST rate.
- **HSN Code:** Use **0713** or **2008** based on the packaging status when filing GST returns.
- **Tax Credit:** Keep records of GST paid on inputs if your client is eligible to claim input tax credit.
### Recommendations:
1. **Verify with GST Authorities:** Given the nuances of GST, it's always a good idea to verify the applicable GST rate with the local GST authorities or a tax professional to ensure compliance with the latest regulations.
2. **Consult a Tax Professional:** For tailored advice based on specific business practices and packaging, consult a GST consultant to ensure accurate application of GST rates.
By following these guidelines, your client should be able to apply the correct GST rate for their makhana products.
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