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Published on:

September 24, 2024

Viraaj Vashishth

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Coconut HSN Code & GST Rate - 0801

In the field of international trade and taxation, it is necessary for those people dealing with certain goods to have knowledge of the correct HSN code and the current GST charged on it. This article will analyze the particulars of the Coconut HSN code 0801 which classifies coconuts including the coconut GST rate levied on these and other related factors.

Recognize an HSN Code

The Harmonized System of Nomenclature HSN code is a system designed to provide names and numbers identifying commercial goods across countries. Being a product of the World Customs Organization (WCO), HSN codes are used in the international movement of cargo to facilitate quicker identification of goods and also bring about uniformity and precision of tariffs and other trade documentation.

Format of HSN Codes

An HSN code is composed of six digits, with the first two referring to the Chapter, the next two to the Heading, and the last two to the Sub heading, which simplifies classification and taxation and customs work.

Why Are HSN Codes Important In International Business?

HSN codes are crucial for managing administrative procedures related to goods trade, determining tax or tariff applications, and maintaining rules for global market trading.

Coconut HSN Code 0801: An Overview

Coconut HSN code 0801 defines the item code coconut in trade. This has several coconut products in its view including fresh and dry coconut. It is relevant to know the details of this code as it helps businesses in the correct classification of their products for trade as well as taxation.

Detailed Classification

1. Whole Coconuts: Fresh, not processed. Raw coconut in its natural form.

2. Shredded Coconut: Shredded copra or dried coconut. Commonly used in food products.

3. Coconut Products: Products that consist of coconut powder, coconut milk etc. and such items.

Application of HSN Code 0801 in Trade

Coconut HSN code 0801 is the code for coconuts which is suitable in trade. If this code is misused, it can lead to misclassification which affects the tariffs as well as compliance.

GST on Coconuts

Goods and Services Tax Law is the Legal Connotation that describes taxes levied on the provision of goods and services in the territories of India. It simplifies the tax regime by consolidating several central and state levies into one.

GST Rate on HSN 0801

As for the HSN Code 0801, the rate of GST for coconuts is generally 0%. This applies to fresh as well as dried ones. However, there are other coconut GST rates for processed coconut products such as tilak coconut powder for example in this case:

HSN Code	Description	Rate (%)	Effective Date	Rate Revision
801	Coconuts, Brazil Nuts And Cashew Nuts, Fresh Or Dried, Whether Or Not Shelled Or Peeled - Coconuts	5/12	01/07/2017	5% 12%
8011100	Coconuts: Desiccated	5/12	01/07/2017	5% 12%
8011210	The Inner Shell (Endocarp): Fresh	5/12	01/07/2017	5% 12%
8011220	The Inner Shell: Dried	5/12	01/07/2017	5% 12%
8011290	Other	5/12	01/07/2017	5% 12%
8011910	Other : Fresh	5/12	01/07/2017	5% 12%
8011920	Other : Dried	5/12	01/07/2017	5% 12%
8011990	Other : Other	5/12	01/07/2017	5% 12%
8012100	Coconuts, Brazil Nuts And Cashew Nuts, Fresh Or Dried, Whether Or Not Shelled Or Peeled Brazil Nuts: In Shell	5/12	01/07/2017	5% 12%
8012200	Shelled	5/12	01/07/2017	5% 12%
8013210	Coconuts, Brazil Nuts And Cashew Nuts,Fresh Or Dried, Whether Or Not Shelled Or Peeled Cashew Nuts Shelled Cashew Kernel, Broken	5/12	01/07/2017	5% 12%
8013220	Cashew Kernel, Whole	5/12	01/07/2017	5% 12%
8013290	Other	5/12	01/07/2017	5% 12%

Impact on Enterprises

Getting the GST rate for coconuts is important as it determines the pricing as well as what is payable concerning the law:

1. Importers and Exporters: application of the GST rate is done properly leading to correct cost computations as well as adherence to laws.

2. Pricing and Profit Margins: Business strategies have to consider the introduction of different pricing strategies possible due to the different rates of GST.

Practical considerations for businesses

Absorption of tax because of incorrect description of coconut products under HSN code 0801 can be avoided. Do not be slipped into simple errors like too hot meal times making some processed products on HSN/SAC classification or incorrect application of GST on rates assumption.

Compliance and Documentation

1. GST Filing: It is required that accurate returns are made through the filing of returns including any other relevant documentation such as HSN codes and GST rates where applicable.

2. Documentation: Keep every documentation concerning compliance and GST filings including all the transactions aimed at preventing problems of compliance.

Updating and Maintenance of Records

Looking at the legal requirements is an important virtue as it involves irrespective there will be timely record completion:

1. Compliance with Other Statutes: All classification and their Rate of GST are kept TIMELY.

2. Effective Audits: All documentation well done assists in the auditing process and assessment of compliance in the business.

GST Filing and Payment

1. Returns Form Submission: Precise submission of returns in the case of GST taxes induces turnover over taxes on time.

2. Payment Punctuality: Sticking to defined payment periods avoids damages in the form of penalties.

Impact of Changes in Taxation

Be aware when there are changes in the GST rates or any changes in HSN codes. Change the ways of doing business to contain the effect on the operations and profitability.

Conclusion

It is a necessity for people dealing in coconuts to appreciate the HSN code 0801 which covers coconuts and its corresponding GST rate. GST being a consumption-based taxation it is important to provide appropriate classifications that will support the business without leading to legal disputes. Such knowledge assists them especially businesses in dealing with the complexities that may be posed by foreign markets and their taxation systems.

FAQ

1. What is the HSN code for coconuts?

The HSN code for coconuts is 0801.

2. What GST rate is applicable for fresh coconuts under 0801 HSN Code?

Such fresh coconuts under HSN code 0801 are taxable at a 0% GST rate.

3. What is the GST rate applicable to coconut powder HSN code?

The GST rate applicable to coconut powder is 18%.

4. Where can I look up the Coconut HSN code and GST rate for coconut-related products?

The coconut HSN code is 0801, fresh and dried coconut carry a 0% GST rate while coconut powder attracts a rate of 18%.

5. What is the 8 digit HSN code for coconut?

The 8-digit HSN code for coconut products typically covers distinct classifications instead of concentrating on a few but generally begins with 08011920 HSN Code.

6. Are the processing of coconut products subjected to different rates of GST?

Yes, processed coconut products such as coconut powder have a GST of 18%, whereas fresh and dried coconuts are subject to 0% GST.

7. In conducting business, under what HSN code do I classify dried coconut?

Dried coconuts fall under the HSN code 0801.

8. What does the 0801 HSN Code refer to when describing coconut sales?

HSN code 0801 relates to the trade and taxation of coconuts, found fresh and dried, or incorporated into another product.

9. GST rates- how do they affect coconut product pricing?

GST rates affect the end cost of coconut products; in the case of fresh and dried coconuts there is no GST, however, for processed packs such as coconut powder, there is GST charged at 18%.

10. What do businesses need to know about Coconut HSN code and GST rates?

Businesses need to make correct use of HSN code 0801 and follow the regulations on GST starlet—0% for fresh and dried coconuts, and 18% for processed ones to avoid fines and correct pricing.