Gst Rate on Makhana

This query is : Resolved

sikandar kumar (Querist)
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05 December 2020 Dear Sir,
My one client has just started business of selling Makhana. He usually sold the makhana in packets.He sell his makhana without any registered brand name. I have little difficulty in understanding explanation given in chapter rate regarding rate of gst to be charged.
Please help.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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27 December 2020 I think the rate of GST is 12% on Butter and other fats (i.e. ghee, butter oil, etc.) and oils derived from milk; dairy spreads

sikandar kumar

sikandar kumar (Querist)
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02 January 2021 Need an expert opinion.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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27 July 2024 Certainly! Understanding the GST rate for specific products can sometimes be confusing. Here’s a breakdown of the GST rate applicable to makhana:

### GST Rate on Makhana

**Makhana** (fox nuts or lotus seeds) is classified under the GST regime based on its use and processing. Here's how GST applies:

1. **Unbranded Makhana:**
- **HSN Code:** 0713
- **GST Rate:** **5%** (This rate applies to unbranded or non-packaged makhana.)

2. **Packaged Makhana:**
- **HSN Code:** 2008
- **GST Rate:** **12%** (This rate generally applies if the makhana is packaged and sold under a brand name.)

### Key Points:

- **Unbranded vs. Packaged:**
- Since your client sells makhana in packets but without a registered brand name, the applicable GST rate is **12%** if it is sold in a packaged form. The GST rate of **5%** is typically applied to loose, unpackaged makhana or where the product is not marketed as a branded packaged product.

- **Classification:**
- Makhana is usually classified under the HSN code **0713** for loose or unbranded products and under **2008** if it is packaged.

### Documentation and Compliance:

- **Invoices:** Ensure proper GST invoices are issued reflecting the correct HSN code and GST rate.
- **HSN Code:** Use **0713** or **2008** based on the packaging status when filing GST returns.
- **Tax Credit:** Keep records of GST paid on inputs if your client is eligible to claim input tax credit.

### Recommendations:

1. **Verify with GST Authorities:** Given the nuances of GST, it's always a good idea to verify the applicable GST rate with the local GST authorities or a tax professional to ensure compliance with the latest regulations.
2. **Consult a Tax Professional:** For tailored advice based on specific business practices and packaging, consult a GST consultant to ensure accurate application of GST rates.

By following these guidelines, your client should be able to apply the correct GST rate for their makhana products.