Do you know about HSN Code and GST Rate? This article is about the HSN code GST rate for Beverages, Spirits and Vinegar.
HSN code and GST Rate is used to classify goods in an organised way. HSN code refers to Harmonised System of Nomenclature. HSN codes help to determine the GST rates. HSN Codes are used in every country to classify various commodities. The HSN Code has a defined structure and follows a pattern. It is widely used for the purpose of filing GST invoices. It is necessary to mention HSN Code in the GST invoice. Without mentioning the HSN code, filing of tax would have been difficult.
Chapter 22 of the HSN code search GST rate for beverages, spirits and vinegar. However, some of the items have been excluded from Chapter 22. The excluded items are products prepared for culinary purposes, seawater, acetic acid etc.
HSN Code and GST Rate
HSN code and GST rate of Beverages, Spirits and Vinegar mentioned in Chapter 22 have been mentioned below:
|
HSN Code |
Description of Items |
GST Rates (In percentage) |
| 2201 | Natural or Mineral Water and Aerated Water Without Adding Sugar or Other Sweetening Matter. | |
| 220110 | Mineral and Aerated Water | 18 |
| 22011010 | Mineral Water | 18 |
| 2201 10 20 | Aerated water | 18 |
| 220190 | Other | 18 |
| 2201 90 10 | Ice and snow | 12 |
| 2201 90 90 | Other | 18 |
| 2202 | Waters, Including Mineral Waters and Aerated Waters, Containing Sugar Whether Added or Other Sweetening Matter or Having Aroma, and Other Beverages Without Alcohol, Not Including Juices of Fruit or Vegetable Associated With To Heading 2009 | |
| 2202 10 | Waters, mineral and aerated waters, containing added sugar or other sweetening matter or flavoured: | |
| 2202 10 10 | Aerated waters and Mineral Waters | 28 |
| 2202 10 20 | Waters including mineral and Aerated waters excluding fruit or vegetable juices | 28 |
| 2202 90 | Other | |
| 2202 91 00 | Non-alcoholic beer | 28 |
| 2202 99 | Other | 28 |
| 2202 99 10 | Soya milk drinks irrespective of being sweet or flavoures | 12 |
| 2202 99 20 | Fruit pulp or fruit juice based drink | 12 |
| 2202 99 30 | Beverages containing milk | 12 |
| 2202 99 90 | Other | 18 |
| 2203 00 00 | Beer made from malt | 18 |
| 2204 | Wine made from fresh grapes, | |
| 2204 10 00 | Wine including sparkling wine, wine of grapes with fermentation is prevented | 18 |
| 220421 | In containers holding 2 l or less | |
| 2204 21 10 | Both port and red wines | 18 |
| 2204 21 20 | Sherry and other white wines | 18 |
| 2204 21 90 | Other | 18 |
| 2204 22 | In containers holding more than 2 L but not more than 10 L: | |
| 2204 22 10 | Port and other red wines | 18 |
| 2204 22 20 | Sherry and other white wines | 18 |
| 2240 22 90 | Other | 18 |
| 2204 29 | Other | |
| 2204 29 10 | Port and other red wines | 18 |
| 2204 29 20 | Sherry and other white wines | 18 |
| 2204 29 90 | Other | 18 |
| 2204 30 00 | Other grape must | 18 |
| 2205 | Vermouth and Other Wine of Fresh Grapes Flavoured With Plants or Aromatic Substances | |
| 2205 10 00 | In containers holding 2 L or less | 18 |
| 2205 90 00 | Other | 18 |
| 2206 00 00 | Other fermented beverages (for example, cider, perry, mead, sake); mixtures of fermented beverages and non-alcoholic beverages, not elsewhere specified or included | 18 |
| 2207 | Undenatured Ethyl Alcohol of An Alcoholic Strength and Other Spirits of Any Strength | |
| 2207 10 | Undenatured ethyl alcohol of alcoholic strength by volume of 80% vol. or higher: | |
| 2207 10 11 | Concentrates of alcoholic beverages | 18 |
| 2207 10 19 | Other | 18 |
| 2207 10 90 | Other | 18 |
| 2207 20 00 | Ethyl alcohol and other spirits of any strength | 18 |
| 2208 | Undenatured Ethyl Alcohol, Spirit, Liqueurs And Other Spiritnous Beverages | |
| 2208 20 | Spirits obtained by distilling grape wine or grape marc: | |
| 2208 20 11 | Brandy | 18 |
| 2208 20 12 | Liquors | 18 |
| 2208 20 19 | Other | 18 |
| 2208 30 | Whiskies | |
| 2208 30 11 | Bourbon whiskey | 18 |
| 2208 30 12 | Scotch | 18 |
| 2208 30 13 | Blended | 18 |
| 2208 30 19 | Other | 18 |
| 2208 40 | Rum and other spirits | |
| 2208 40 11 | Rum | 18 |
| 2208 40 12 | Other | 18 |
| 2208 50 | Gin and Geneva: | |
| 2208 50 11 | Gin | 18 |
| 2208 50 12 | Geneva | 18 |
| 2208 50 13 | Vodka | 18 |
| 2208 70 | Liqueurs and cordials | |
| 2208 70 11 | Liqueurs | 18 |
| 2208 70 12 | Cordials | 18 |
| 2208 90 11 | Tequila | 18 |
| 2208 90 12 | Indenatured ethyl alcohol | 18 |
| 2208 90 19 | Other | 18 |
| 2209 | Vinegar and Substitutes For Vinegar Obtained From Acetic Acid | |
| 2209 00 | Vinegar and substitutes for vinegar obtained from acetic acid | |
| 2209 00 10 | Brewed vinegar | 18 |
| 2209 00 20 | Synthetic vinegar | 18 |
| 2209 00 90 | Other | 18 |
Why is HSN Code Important?
The main purpose of the HSN Code is to classify the goods systematically. It is used worldwide, and almost 200 countries use this code. Some important benefits of using the HSN code are
- Helps to collect international statistics
- Helps in uniform classification
- Collect data and gather other information
- Helps to classify products in an organised manner
- Helps to arrange the products in a definite structure
HSN Code represents each commodity in every country. The numbers are the same for all goods. But, in some countries, HSN codes may differ based on items. It also helps to determine the number of items. HSN Code is not only useful for custom agents, but it is also important for the implications for GST. HSN Code helps to make GST acceptable worldwide and to maintain taxation in a systematic manner.
Another important aspect of the HSN code is that you do not need to upload a detailed description of each product that falls under GST.
The Role of the HSN Code in India
In the initial stage, India introduced a six-digit HSN code to classify merchandise for Customs and Central Excise Duties. Later, the Customs and Central Excise authorities added two more digits, making the HSN Code eight-digit. HSN Classification Code helps calculate Goods and Service Tax (GST).
Importance of HSN Code in GST Invoice
HSN Code should be mentioned on GST Invoices while preparing for Tax Invoices for GST. HSN Code should be used in the following ways:
- Any taxpayer whose annual turnover is below ₹1.5 crores in the preceding financial year need not mention HSN Code. These are considered small taxpayers
- Taxpayers with an annual turnover between ₹1.5 crores to ₹5 Crore must mention only two digit HSN Code
- When turnover exceeds ₹5 crores, the HSN Code will be a five-digits
Structure of HSN Code
The HSN Code is comprised of 21 sections. Sections or groups are classified into 99 chapters. Chapters are again classified into 1244 headings, and headings are divided into 5224 sub-headings.
Each chapter is known as a two-digit HSN number. Two-digit HSN numbers can again be divided into four-digit HSN codes, and four-digit HSN codes are further classified into six-digit HSN codes. Thus this code is also organised in proper structure.
Conclusion
HSN Code helps to organise the classification of goods without any chaos. Systematic classification leads to an easy process of collecting data and solving problems. Well-defined rules of the taxation authorities support the classification of HSN. Almost 5000 products are classified under HSN Code. The classification is organised in a definite structure. The HSN Code classification also helps identify the rate applicable to different products. It also helps in the import and export of a specific product and the quantity of these product.
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