The GST or Goods and Services Tax registration is now a must for each MSMEs and SMEs. Een your local Kirana store must now register under the GST scheme. They should display their GST certificate and GSTIN in their shops or business dwellings to ensure that the consumers can be assured about the tax.
The government has combined all the business and commercial taxes under one roof as GST and has decided different ratios of GST like 0%, 5%, 12%, 18%, and 28%. Hence, always check if your local Kirana store is taking the government-prescribed GST on items.
HSN Code And Its Importance in The Unorganized Business Section
HSN stands for Harmonized System Of Nomenclature. This coding system is derived by the World Customs Organization or WCO. T is used to classify and distinguish the different selling items and services. The government of India also uses this HSN system and HSN codes to define taxable items and also recommends the GST percentage for each item. Besides that, the government also uses the SAC or service area code to identify each item or service for GST.
What To Know
Do you know that your neighborhood shop also has a rate chart for taxable items? The time value of money indicates that you must receive services or goods of the same amount of money you are paying. Hence, always check the tax percentage and try to find if you are paying the right tax.
Here is the details of the HSN code, GST details for the regular items available in a Kirana store or a general store-
|Serial no||Item name||GST percentage||HSN code|
|24||Other edible oil variants||5%||1515|
|25||Toothpaste and tooth powder||12%||3306|
|38||Lip makeup and lipsticks||28&||3304|
|39||Eye makeup products||28%||3304|
So, next time you buy something from your neighbourhood Kirana store or general store, check the GST amount of each item and pay only the desired tax amount.