Understanding GST Rate & HSN Code for Live Animals – Chapter 01
Under the Goods and Services Tax (GST) system in India, all goods and services are classified into different chapters and sections based on the Harmonized System of Nomenclature (HSN) code. This system helps in the systematic and uniform classification of goods and services for tax purposes. In this article, we will be discussing Chapter 01 of the HSN code which covers live animals and their products, and the applicable GST rates for these items.
| Item | Rate of GST (%) |
|---|---|
| Live Horses, Asses, Mules and Hinnies | 12 |
| Live Bovine Animals | 12 |
| Live Swine | 12 |
| Live Sheep and Goats | 12 |
| Live Poultry – that is to say, fowls of the species Gallus domesticus, ducks, geese, turkeys and guinea fowls | 0 |
| Other live animals such as mammals, birds, insects, etc. | 12 |
| HSN Code | Description | Rate of GST (%) |
|---|---|---|
| 0101 | Live horses, asses, mules and hinnies | 12 |
| 0102 | Live bovine animals | 12 |
| 0103 | Live swine | 12 |
| 0104 | Live sheep and goats | 12 |
| 0105 | Live poultry – that is to say, fowls of the species Gallus domesticus, ducks, geese, turkeys and guinea fowls | 0 |
| 0106 | Other live animals such as mammals, birds, insects, etc. | 12 |
GST Compliance and Invoicing for Live Animals
Any person or business involved in the buying or selling of live animals must comply with the GST regulations. This includes registering for GST, maintaining proper records, and issuing GST invoices. The GST invoice must contain the following details:
- Name, address, and GSTIN of the supplier
- Name, address, and GSTIN of the recipient
- Invoice number and date
- HSN code and description of the goods
- Quantity and unit of measurement
- Value of the goods
- Applicable GST rate and amount
- Place of supply
Example Scenarios:
Item Name: Live Bovine Animals
HSN Code: 0102
Price: Rs. 50,000
GST Rate: 12%
In this case, the GST amount would be calculated as follows:
GST amount = (50,000 x 12)/100 = Rs. 6,000
Item Name: Live Poultry (fowls of the species Gallus domesticus)
HSN Code: 0105
Price: Rs. 10,000
GST Rate: 0%
Since the GST rate for live poultry is 0%, there would be no GST amount to be added to the price of Rs. 10,000.
Key Notes for GST Compliance
- Live animals are classified under Chapter 01 of the HSN code and attract GST rates ranging from 0% to 12%, depending on the type of animal.
- The HSN code for live animals is important for proper classification and taxation of these goods under the GST system.
- GST invoices must be issued for all transactions involving live animals and must contain the necessary details as per GST regulations.
- It is important for businesses to maintain proper records and comply with all GST rules and regulations to avoid any penalties or legal issues.
Conclusion
In conclusion, understanding the GST rate and HSN code for live animals under Chapter 01 is crucial for businesses involved in the buying and selling of these goods. Compliance with GST regulations and proper invoicing is necessary for smooth and legal operations. It is also important to stay updated with any changes in the GST rates or regulations to avoid any non-compliance issues.
FAQs about GST Rate & HSN Code for Live Animals
Q: What is the GST rate for live poultry?
A: The GST rate for live poultry is 0% under Chapter 01 of the HSN code.
Q: Do I need to register for GST if I am involved in the buying and selling of live animals?
A: Yes, all businesses must register for GST if their annual turnover exceeds Rs. 40 lakhs (Rs. 20 lakhs for North-Eastern states).
Q: Are there any exemptions for GST on live animals?
A: No, there are no exemptions for GST on live animals. The applicable rates range from 0% to 12% depending on the type of animal.
Q: Can I claim input tax credit for GST paid on live animals?
A: Yes, you can claim input tax credit for GST paid on live animals if you are a registered business and have proper documentation.
Q: Is it necessary to mention the HSN code on a GST invoice for live animals?
A: Yes, it is necessary to mention the HSN code on a GST invoice for live animals for proper classification and taxation under the GST system.
