Introduction
The Goods and Services Tax (GST) is a comprehensive indirect tax system that was implemented in India in 2017. It replaced multiple state and central taxes, streamlining the taxation process and making it more transparent. GST is divided into different chapters, each covering specific goods and services. In this article, we will be discussing Chapter 1 of GST, which covers live animals and their products. This chapter is of great importance as it sets the tax rates for live animals and their products under the GST regime.GST Rates for Live Animals
Under Chapter 1 of GST, live animals are classified into different categories, each with its own GST rate. The following table shows the GST rates applicable for live animals:| Category | GST Rate |
|---|---|
| Live horses, asses, mules and hinnies | 12% |
| Live bovine animals | 0% |
| 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% |
| Live mammals | 0% |
| Live birds | 0% |
| Live reptiles | 0% |
| Live amphibians | 0% |
HSN Codes and GST Rates for Live Animals
HSN (Harmonized System of Nomenclature) codes are used to classify goods and services for taxation purposes. Each category of live animals has specific HSN codes, descriptions, and GST rates. The following table lists some important HSN codes, descriptions, and GST rates for live animals:| HSN Code | Description | GST Rate |
|---|---|---|
| 0101 | Live horses, asses, mules and hinnies | 12% |
| 0102 | Live bovine animals | 0% |
| 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 | Live mammals | 0% |
| 0107 | Live birds | 0% |
| 0108 | Live reptiles | 0% |
| 0109 | Live amphibians | 0% |
GST Compliance and Invoicing
As per the GST laws, all businesses dealing with live animals or their products must comply with the GST regulations. This includes registering for GST, maintaining proper records, and filing GST returns. When invoicing for live animals, the following information must be included:Item name: The name or description of the live animal being sold.
HSN code: The HSN code for the live animal being sold.
Price: The price of the live animal excluding GST.
GST: The applicable GST rate and amount.
Example Scenarios
Scenario 1: A farmer sells a live cow for Rs. 50,000.Item name: Live cow
HSN code: 0102
Price: Rs. 50,000
GST: 0%
Scenario 2: A poultry farm sells 100 live chickens for Rs. 10,000.Item name: Live chickens
HSN code: 0105
Price: Rs. 10,000
GST: 0%
Scenario 3: A pet store sells a live snake for Rs. 5,000.Item name: Live snake
HSN code: 0108
Price: Rs. 5,000
GST: 0%
- HSN codes and GST rates for live animals may vary depending on the type of animal and its intended use. It is important to accurately classify and invoice live animals to ensure compliance with GST laws.
- Businesses dealing with live animals must maintain proper records of purchases, sales, and stock to avoid any discrepancies during GST audits.
- It is advisable to consult a tax expert or seek guidance from the government’s official GST portal for any queries regarding GST compliance for live animals.
