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May 22, 2025

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GST rates and HSN code 202 for Meat Of Bovine Animals, Frozen

India's Goods and Services Tax initiation has made indirect taxes easier to implement in the country. It is based on a uniform system by the name of the Harmonized System of Nomenclature or commonly called HSN codes to classify goods and services systematically. One specific HSN code in the meat sector is HSN code 202, which corresponds to Meat of Frozen Bovine Animals. It is necessary for companies and customers to know the GST rate applicable to this segment, as well as its implications.

In this article, we are going to see the classification under HSN code 202, the GST rates involved, and their importance in the meat business. We will also discuss the advantages, possible disadvantages, and challenges that the businesses may face, followed by a short conclusion and some common questions.

HSN Code 202: Meat of Bovine Animals, Frozen

Understanding HSN Code 202: Meat of Bovine Animals, Frozen

HSN code 202 belongs to Chapter 2 of the HSN classification system. Chapter 2 deals with meat and edible meat offal. HSN code 202, specifically, is utilized for Frozen Bovine Animals, such as meat of cattle, buffalo, and other bovine animals included, in a frozen form.

Frozen meat is a major product in India's domestic sales as well as in export markets. As demand for processed and preserved meat has increased, this classification assists in simplifying taxation, making it uniform across states. The GST tax rate applicable to frozen meat of bovine animals is crucial in deciding the total cost and competitiveness of this industry.

GST Rates Applicable to HSN Code 202

At present, the GST rate for Meat of Bovine Animals, Frozen (HSN code 202) is Nil. It implies that no GST is charged on this commodity. The tax-free status of frozen bovine meat under GST by the government is a reflection of its policy to encourage necessary food items and keep these affordable for consumers.

Granting of nil rate is advantageous on various counts:

Consumer Affordability: Since meat is a common protein item consumed in India, maintaining its tax-free status lessens the tax burden on final consumers.

Improving Export Competitiveness: India is among the top exporters of buffalo meat. Nil GST helps to keep the product competitively priced overseas.

Fostering the Meat Industry: It encourages meat processors and traders, particularly small and medium-scale enterprises, by minimizing their tax compliance costs.

The nil GST rate applies whether the meat is loose or in packaged form, as long as it is unbranded or not bearing a registered trademark.

Suggested Read: GST Rates and HSN Code 0105 for Live Poultry: Ducks, Geese, Turkeys, and Guinea Fowls

Benefits of Nil GST on Frozen Meat of Bovine Animals

Reduced Prices for Consumers

One of the main benefits of the NIL GST rate on a frozen bovine is that it accrues directly to consumers. With no taxes, the price to businesses is lower, which translates into lower retail prices. This is particularly essential for low income and middle class families who depend on meat as a source of affordable nutrition.

Promotion to Small Businesses

The meat industry, especially in India, involves many small - scale traders, abattoirs, and cold storage units. Exclusion of frozen bovine meat from GST lightens the administrative load of tax compliance. These small enterprises are not required to keep elaborate GST accounts, decreasing their cost of operations.

Competitive Advantage in Exports

India is one of the largest buffalo meat exporters in the world. The nil GST rate adds to the export competitiveness of Indian frozen meat as it keeps production and processing expenses low. Foreign consumers look for quality meat products at reasonable prices, and tax exemptions enable Indian exporters to provide competitive pricing.

Simplification of Compliance

For companies that trade in frozen cattle meat, GST exemption makes accounting and filing of taxes easy. Without having to charge GST, companies spare effort and time on monthly filings as well as tax payments.

Disadvantages and Challenges

Though the nil rate of GST on frozen cattle meat offers numerous benefits, there are some disadvantages:

No Input Tax Credit (ITC) Available

Companies engaged in manufacturing and marketing frozen bovine meat cannot claim Input Tax Credit (ITC) on tax paid on raw material, packing, transportation, and other allied services. Hence, they will have to bear the input taxes as a cost, which would eat into the profit margin.

Possibility of Unorganized Market Growth

The second issue is that a tax-free regime could allow unorganized players to take over the market. This would lead to hygiene and safety issues since unregulated establishments might not maintain food safety measures.

Absence of Incentive for Formalization

The lack of GST may deter small processors and traders from registering under GST. Though compliance is eased, it could also imply businesses continue to stay informal, reducing their growth possibilities and access to government schemes or loans.

Challenges for Policymakers

Policymakers are confronted with the sensitive balance between consumer interests, industry development, and revenue generation. Granting frozen bovine meat a tax-free status involves a compromise in the loss of revenue. Ensuring compliance with food safety standards, even with unregistered operators being common, is a continuous challenge. Securing the industry at par with international best practices in processing and quality control is crucial to support its export potential.

Conclusion

The categorization of frozen beef meat under HSN code 202 and its nil GST rate is a thoughtful policy for achieving affordability, encouraging small traders, and putting India at a better position in the international meat business. Although it makes compliance easy and lowers consumer prices, the companies must go through the difficulty of non-availability of input tax credit along with quality norms. The policymakers, however, have to balance ensuring that the industry is not stunted through over-regulation. Generally speaking, the treatment of frozen bovine meat by GST highlights the emphasis of the government on the focus on commodities as well as key industries' expansion.

Suggested read: GST on Food Items: Pre-packed and Labeled Retail Packs of Food Items

FAQs

What's the Goods and Services Tax rate on a buffalo's frozen meat in our country?

Frozen buffalo meat, which falls under HSN code 202, is taxed at Nil GST rate. In other words, no GST is payable on it.

Is GST applicable in case the frozen meat is packed and marketed with a brand name?

No, provided that the frozen meat is not branded or doesn't bear a registered trademark, it is exempted from tax under GST.

Can businesses selling frozen bovine meat claim input tax credit?

No, as frozen bovine meat is GST-free, companies that sell it cannot recover input tax credit on any goods or services' taxes paid towards the production or sale of the same.

Why has the government maintained GST at nil for frozen bovine meat?

The government wishes to keep basic food items low-cost and competitive both within the country and overseas by providing them with GST exemption.

‍Is the GST exemption applicable to both domestic sales and exports of frozen bovine meat?

Yes, the nil GST rate is applicable to both domestic sales and exports of frozen bovine meat, which makes the product affordable in all markets.

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