New

Published on:

August 28, 2024

Viraaj Vashishth

Blog |

Explore GST

GST FAQs

4901 HSN Code GST Rate for Printed Books, Brochure and Newspaper

Among all, the Harmonized System of Nomenclature (HSN) plays a significant role in categorizing and analyzing various goods and services by applying taxes on them. An example is HSN Code 4901. It relates to printed materials such as books, brochures and newspapers among others. The knowledge of the GST rates that apply to these items is important for both businesses and consumers alike to ensure compliance with the current market prices as well as financial planning. In this article, we shall delve into the complexities of HSN Code 4901, its GST rates and associated compliance.

Understanding HSN Code 4901

HSN Code 4901 covers several types of printed materials:

1. Printed Books-The general GST rate that applies to printed books is 5%. This is inclusive of educational or non-educational texts since most other books fall under this category.

2. Brochures on the other hand, brochures or similar promotional materials have been subjected to a GST rate of 12%. This tax reflects their commercial value being used for marketing purposes through adverts.

3. Newspapers-Printed journals have a much lower tax slab which is set at five percent keeping in line with those applied to printed book reading materials. The low cost of information dissemination has been maintained through this reduced rate to make it more affordable for ordinary people who need to use them to obtain knowledge or advertisement messages.

GST Rates for HSN Code 4901

The GST rates for items under HSN Code 4901 are as follows:

Item	HSN Code	GST Rate	Notes
Printed Books	4901	5%	Includes educational and non-educational books.
Brochures	4901	12%	Includes marketing materials such as pamphlets and flyers.
Newspapers	4901	5%	Regularly published periodicals with news and information.

Detailed GST Analysis

There are several exemptions and human benefits where HSN Code 4901 is concerned:

1. Educational Books: Some educational publications do not attract GST or enjoy concessions. This exemption fosters education and enhances its accessibility.

2. Non-Profit Organizations: These types of organizations that engage in education may be entitled to lower rates of taxes on printed books, instructional materials, etc.

Input Tax Credit(ITC)

Some conditions that must be met for businesses dealing with printed materials under HSN Code 4901 to claim Input Tax Credit (ITC) include the following:

1. Eligibility Criteria: To qualify for ITC, the printed materials should have been used for business purposes. Normally, ITC is available on inputs used in the manufacture or provision of goods and services.

2. Conditions and Restrictions – Businesses must meet the compliance requirements including adequate documentation and bookkeeping to claim ITC. The use or nature of print products may attach conditions thereto.

Regulatory and Compliance aspects

For goods classified under HSN code 4901, businesses must comply with specific regulatory requirements:

1. Documentation: Adequate documentation and record keeping are necessary for managing GST obligations. They should maintain records of purchases, sales and tax payments.

2. Filing Requirements: To report transactions and remit tax payments, it is important to file GST returns regularly. The frequency and format of filings depend on turnover and other factors specific to the business.

Audit And Inspection

In terms of HSN Code 4901 items in the business’s line, several areas may be questioned during GST audits:

1. Record Keeping: Prevention of issues arising during audits can be done by ensuring that all records are accurate as well as up-to-date.

2. Tax Compliance: Allowing smooth operations while avoiding penalties relies upon conforming to the printed materials’ GST regulations plus rates.

Practical Examples And Case Studies

Case Study 1: Printed Books

A publishing house printing educational books must deal with a 5% GST charge. Proper categorization and documentation of these books are crucial for compliance purposes as well as ITC claims.

Case Study 2: Brochures

The brochure production arm of a marketing firm catering to different clients has to accommodate the 12% rate. Boosting financial efficiency calls for proper management of tax implications as well as ITC optimization.

Case Study 3: Newspapers

When the 5% GST rate is used, a newspaper publisher needs to focus on controlling costs and pricing issues that would result in profitability and also compliance with tax regulations.

Conclusion

HSN Code 4901 is essential in getting the right rates of GST applicable to printed books, brochures and newspapers. In cases where books and newspapers incur a rate of 5% while brochures attract a rate of 12%, businesses have to live with these variations as well as adhere to GST rules. As such, changes in the GST rates or regulations might impact prices for printed materials and hence affect their profitability. To respond to any possible changes, business people must be aware of new legislation involving this area as well as keep an eye on some general guidelines applicable here.

FAQs

1. What is the GST rate and HSN Code for Books?

The GST rate for the HSN Code for books falling under 4901 is usually 5%. This rate will apply to most types of printed books that are not specifically educational materials.

2. How does HSN Code 4901 affect the GST rate for brochures?

With respect to the HSN code, a brochure has a GST rate of twelve percent, as it is strictly commercial in nature, with respect to advertising and marketing.

3. Is there a GST exemption for educational material defined under HSN Code 4901?

Many educational books are exempt from GST or have a concessional rate under HSN Code 4901, making them affordable.

4. What is the newspaper GST rate under HSN Code 4901?

The newspapers also fall under HSN Code 4901, and the GST rate is uniformly 5%. This rate aligns with the printed books that are informational in nature.

5. Are input tax credits (ITCs) allowed for printed materials under the HSN code 4901?

Certainly, businesses can claim Input Tax Credit (ITC) on printed materials under the 4901 HSN Code so long as they use them for business purposes and keep proper documentation.

6. What makes brochures subject to a different amount of GST than that applied to books under the HSN code 4901?

Brochure HSN Code is taxed at a rate of twelve% whereas books are taxed at only five% within the framework of HSN code 4901. As such, this distinction mirrors their divergent uses and economic impacts.

7. What are the key HSN Code 4901 compliance requirements for businesses dealing with items?

For GST compliance of goods under the HSN Code 4901, firms should maintain records accurately, adhere to requirements for filing GST and ensure that authentic documentation is available.

8. How have GST rates for printed materials under the 4901 HSN Code changed over time?

GST rates applied on printed material in line with 4910 HSN codes have been fluctuating due to changes in economic conditions, government policies and so on. A business needs to keep up with these developments.

9. What are some practical examples of how the 4901 HSN Code GST rate impacts businesses?

For instance, an educational press must consider the five per cent GST rate charged on textbooks whereas a marketing firm has to manage prices effectively regarding pamphlets by optimizing their profits due to twelve per cent of goods taxes related therewith.

‍