GST rate on Organic black chia seeds.

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Babu Kartik (Querist)
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01 February 2021 1. What is the HS code of organic black chia seeds in India?
2. What is the rate of GST applicable on organic black chia seeds?
3. I will be re-packing the chia seeds and supply to the retail outlets. Obviously, I will be supplying the product at a discount, which may be 30 to 40 percent less than MRP. Do I have to generate invoice in the name of the retailer? Whether I have to charge GST on full amount or on discounted amount?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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07 July 2024 Here are the answers to your queries:

1. **HS Code of Organic Black Chia Seeds in India:**
- Organic black chia seeds are classified under the Harmonized System (HS) Code 1211.90.90 in India. This code pertains to plants and parts of plants, including seeds and fruit, used primarily in food or as animal feed.

2. **Rate of GST Applicable on Organic Black Chia Seeds:**
- Organic black chia seeds are generally classified under the category of seeds and grains, which attract a GST rate of 5% without Input Tax Credit (ITC) under the GST regime in India.

3. **Invoicing and GST Treatment for Repacked Chia Seeds:**
- When you re-pack the organic black chia seeds and supply them to retail outlets at a discounted price (30-40% less than MRP), you will need to generate invoices for these supplies.
- The invoice should be issued in the name of the retail outlet or the recipient of the goods.
- GST should be charged on the actual transaction value or the discounted price at which you are selling to the retailer. In GST terms, the taxable value is the consideration received for the supply. Since you are selling at a discounted rate, GST should be applied on the discounted amount.

**Example Scenario:**
- Suppose the MRP (Maximum Retail Price) of a pack of chia seeds is Rs. 100.
- You sell this pack to a retailer at a discounted price of Rs. 70.
- GST should be charged on Rs. 70 (discounted price), not on the MRP of Rs. 100.

- Calculation:
- Assuming GST rate is 5%, GST amount = 5% of Rs. 70 = Rs. 3.50.

- So, you would issue an invoice to the retailer for Rs. 70 + Rs. 3.50 GST.

- Ensure that the invoice includes all required details as per GST rules, such as your GSTIN, invoice number, date, recipient's details, description of goods (organic black chia seeds), HSN code, quantity, taxable value, GST rate, and amount.

By following these guidelines, you can ensure compliance with GST regulations while selling re-packed organic black chia seeds to retail outlets at a discounted price.

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