Gst rate

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2017 Hi,

I am a manufacturer making Ultrasonics Horn .

I am buying Ultrasonic meteria on the rate of 18% GST .

How much I ave to charge on the ready product (Ultrasonic Horn)?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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07 July 2017 It is also 18%........................

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2017 Some other Vendors are telling if we prepare finished goods it will be charges 28%.

Ple confirm

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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07 July 2017 Provide me HSN for exact solution.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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27 July 2024 The GST rate applicable to your product, an ultrasonic horn, depends on its classification under the GST tariff. Here’s how you can determine the correct GST rate and charging process:

### **1. GST Rate for Ultrasonic Horn**

- **Ultrasonic Horns** are classified under **HSN Code 8516**.

- **GST Rate**: **18%** (9% CGST + 9% SGST) or **18% IGST** if sold interstate.

### **2. GST Rate on Input Materials**

- You mentioned that you are buying ultrasonic materials at an 18% GST rate. This means you are paying 18% GST on the raw materials used to manufacture ultrasonic horns.

### **3. GST on Finished Product**

- **Rate to Charge**: The GST rate on the finished product, i.e., the ultrasonic horn, is **18%**. This is the same as the GST rate on the raw materials you purchase.

### **4. Input Tax Credit (ITC)**

- **Eligibility**: You can claim Input Tax Credit (ITC) on the GST paid on raw materials (18% GST) used to manufacture the ultrasonic horns. This means you can offset the GST you have paid on inputs against the GST you need to collect on the sale of your finished products.

### **Summary:**

- **GST Rate on Ultrasonic Horn**: 18% (9% CGST + 9% SGST) or 18% IGST for interstate sales.
- **Input GST**: 18% (which you can claim as ITC).
- **Charging GST**: 18% on the sale price of the ultrasonic horn.

**Note:** Always verify the specific HSN code and applicable GST rate for your product by referring to the latest GST notifications or consulting with a tax advisor to ensure compliance.