HSN and SAC Codes are used to classify goods and services under GST. HSN i.e. Harmonized System of Nomenclature Code used to classify different goods under GST. Where as, SAC i.e. Service Accounting Code used to classify different services under GST. GST Rates & HSN Codes for Vegetable Material & Products are mentioned in chapter 14.
GST Rates & HSN Code for Vegetable Material & Products etc are summarized in following table:
|
HSN Code |
Description |
Rate (%) |
Effective From |
CESS (%) |
Related Export / Import HSN Code |
|
1401 |
Vegetable materials of a kind used primarily for plaiting (for example, bamboos, rattans, reeds, rushes, osier, raffia, cleaned, bleached or dyed cereal straw, and lime bark) |
5 |
27/07/2018 |
||
|
1401 |
Sal leaves, siali leaves, sisal leaves, sabai grass |
5 |
28/06/2017 |
14011000, 14012000, 14019010, 14019090 |
|
|
1404 |
Vegetable products not elsewhere specified or included such as cotton linters, Cotton linters, Soap nuts, Hard seeds, pips, hulls and nuts, of a kind used primarily for carving, (coconut shell, unworked deleted w.e.f 14/11/2017), Rudraksha seeds [other than bidi wrapper leaves (tendu), betel leaves, Indian katha, ( inserted w.e.f 14/11/2017 :coconut shell, unworked ] [other than 14049010,14049040,14049050] |
5 |
28/06/2017 |
14042000, 14049021, 14049029, 14049030, 14049060, 14049070, 14049090 |
|
|
1404 |
Unworked coconut shell |
NIL |
10/11/2017 |
14042000, 14049021, 14049029, 14049030, 14049060, 14049070, 14049090 |
|
|
14049050 |
Indian katha |
18 |
28/06/2017 |
||
|
14049040 |
Betel leaves |
NIL |
28/06/2017 |
||
|
14049010 |
Bidi wrapper leaves (tendu) |
18 |
28/06/2017 |
||
|
14049090 |
Vegetable materials, for manufacture of Jhadoo or broom sticks”; |
NIL |
27/07/2018 |
Disclaimer
The rates given in the above table are as per the 31st GST council meeting which was held on 22nd December 2018. Dissimilarities may be present due to the latest updates made by the government. Make sure to check the “Effective From” column
FAQs
All vegetables fall under Chapter 8 of the HSN Code. Though GST is levied in 5 different slabs, all vegetables are taxed only at NIL and 5% rate. Hence, no vegetable would attract a GST of more than 5%.
Taxpayers having turnover exceeds Rs. 1.5 crore but up to 5.00 crore will be required to mention only two digits of HSN code. Taxpayers having turnover exceeds Rs 5.00 crore will be required to mention four digits of HSN code.
HSN codes are unique for each product. Under HSN, all the goods and services are divided into 21 sections, 99 chapters. Under 99 chapters there are 1244 headings and 5244 subheadings. Each item which is used for trade or commercial use, it is identified with 8 digit code using the HSN code rules.
Hey @HarishMehta
From 1st April 2021, Taxpayers with an aggregate Annual Turnover of more than INR 5 Crore during the financial Year 2020-2021 have to mandatorily mention 6 digits of the HSN Code in all tax invoices.
Businesses with a turnover of up to INR 5 crore in the preceding financial year will be required to mandatorily furnish 4 digit HSN code on B2B invoices.
Hope this helps!
Hey @Dia_malhotra
Let’s take an example of Cocoa powder to calculate the GST using the HSN code.
Cocoa Powder per Kg = INR1,000.
HSN Code = 18 05 00 00
GST Rate = 18% (For Cocoa powder, not containing added sugar or sweetening matter)
Therefore, GST = INR180
Hope this helps!
Hey,
What are the consequences of not mentioning or incorrectly mentioning the HSN Code?
Hey @SonalYadav
It is very crucial to mention the correct HSN/ SAC Code on the tax invoices and Form GSTR-1, barring to do so may attract a penalty of INR 50,000 (INR 25,000 each for CGST and SGST) for non-mentioning or incorrect mention of wrong HSN/ SAC Code under Section 125 of the CGST Act.
Hope this helps!
Hey @Prasana_Srinivasan, this tool can help