0% GST HSN Code: Understanding the Exemptions
The Goods and Services Tax (GST) is a comprehensive indirect tax levy on the supply of goods and services in India. It was introduced in 2017 to replace multiple indirect taxes levied by the central and state governments.GST has been categorized into four tax slabs: 5%, 12%, 18%, and 28%. However, certain goods and services are exempted from GST, i.e., they attract a 0% GST rate. In this article, we will discuss the 0% GST HSN code and the exemptions under it.
What is HSN Code?
HSN (Harmonized System of Nomenclature) is an international coding system used to classify goods for taxation purposes. It is a six-digit code that identifies the type of goods and their GST rates. HSN codes are used to classify goods under GST and determine their tax rates.
0% GST HSN Code: Exemptions
The following goods and services attract a 0% GST rate:
Food Items
- Fresh fruits and vegetables
- Rice, wheat, and other cereals
- Milk, butter milk, and curd
- Eggs
- Spices, including turmeric, cumin, coriander, and others
- Tea, including green tea and coffee
Agricultural Products
- Agricultural produce, including paddy, wheat, and other cereals
- Fresh flowers and foliage
- Jute and jute products
Health and Education
- Healthcare services, including doctor consultations and hospital services
- Educational services, including tuition fees and school fees
Other Goods and Services
- Newspapers and periodicals
- Printed books, including school books and other educational materials
- Judicial and court fees
- Services provided by the Government, including passport services and driving license fees
Benefits of 0% GST HSN Code
The 0% GST HSN code offers several benefits to consumers and businesses:
- No GST liability: Businesses do not need to pay GST on goods and services with a 0% GST rate.
- Reduced prices: With no GST liability, businesses can offer goods and services at lower prices, making them more affordable for consumers.
- Increased demand: Lower prices can lead to increased demand, which can benefit businesses and the economy.
Conclusion
In conclusion, the 0% GST HSN code is a crucial aspect of the GST regime in India. It provides exemptions to certain goods and services, making them more affordable for consumers and benefiting businesses. Understanding the 0% GST HSN code can help businesses and individuals navigate the complex GST system and make informed decisions.
