Natural Steatite: GST Rates & HSN Code 2526

Stealite or soapstone is a soft metamorphic rock known for its smooth texture. It has a widespread use in various industries especially in ceramics. As it is found at shallow depth it was used to make statues in ancient civilizations. Businesses involved in Stealite processing or other activities must understand the GST Rates and HSN code associated with it. It not only helps to ensure compliance but also prevents legal troubles.

What is Natural Stealite ?

Stealite, also called soapstone, is a soft metamorphic rock with a smooth texture. It is primarily composed of talc and small amounts of chlorite and amphiboles. It is formed in the subduction zone by metasomatism. It has been used as a carving medium for thousands of years. As per archeologists it was used as Indus-Harappan seals. In modern industries it has a wide application due to its high chemical and heat resistance. Some notable uses are tips of gas burners, spark plugs, vases etc.

Properties of Stealite

Hardness- 1(Mohs hardness scale)

Colour- White, gray

Luster- Dull

Texture- Soapy

Specific gravity- 2.5- 2.8(light)

Cleavage- Perfect cleavage in one direction

Special properties

Highly resistant to acid and alkali
High tolerance to heat
Excellent insulator of electricity

HSN Code for Natural Stealite

Natural stealite is classified under HSN code 2526 and 5% tax is applied on it. It also has sub-categories for different categories of Stealite e:g 252610 for Not crushed Stealite. This sub-classification is necessary for avoiding confusion during invoicing.

HSN Code	Description	Rate(%)
2526	Natural Steatite, Whether Or Not Roughly Trimmed Or Merely Cut, By Sawing Or Otherwise, Into Blocks Or Slabs Of A Rectangular (Including Square) Shape; Talc	5
252610	Not Crushed, Not Powdered	5
25261010	Natural Steatite, Whether Or Not Roughly Trimmed Or Merely Cut, By Sawing Or Otherwise, Into Blocks Or Slabs Of A Rectangular (Including Square) Shape; Talc - Not Crushed, Not Powdered: Steatite (Soap Stone, Etc.) Block	5
25261020	Natural Steatite, Whether Or Not Roughly Trimmed Or Merely Cut, By Sawing Or Otherwise, Into Blocks Or Slabs Of A Rectangular (Including Square) Shape; Talc - Not Crushed, Not Powdered: Steatite (Soap Stone, Etc.) Lumps	5
25261090	Natural Steatite, Whether Or Not Roughly Trimmed Or Merely Cut, By Sawing Or Otherwise, Into Blocks Or Slabs Of A Rectangular (Including Square) Shape; Talc - Not Crushed, Not Powdered: Other	5

GST Rates for Natural Stealite

Currently, the GST rate on Stealite is 5% in the raw form. It may change as the government has made some changes to the existing tax slabs. This 5% rate is applicable to all types of Stealite rocks whether crushed, powdered or trimmed. Also it has a very low GST rate as compared to other minerals under Chapter 25 like Granite(18%) and Marble(12%).

Exemptions and special cases

Basic raw material

Sometimes, if the Stealite is in the raw form it may not fall under GST. It depends on the government notification

Small traders and Composition scheme

Businesses below the threshold limit e:g ₹40 lakhs for goods may be exempted from GST registration. They can either avoid the GST completely or go for a composition scheme.

End-use-clarification

Exemptions may be allowed if supplied for government approved projects.

ITC on Natural Stealite

ITC is like a boom for businesses that deals in natural Stealite

Who can claim: Traders and manufacturers who purchase Stealite to make other products like cosmetics or ceramics can claim ITC on the GST they paid during purchasing.

How it works: Suppose a cosmetic company buys Stealite and pays GST on it. Later, while selling their ceramic product they can reduce the GST already paid on Stealite

Conditions:

Proper GST invoice with HSN code 2526 must be available
Supplier should be a registered GST dealer
Return must be filed correctly on time

Impact of GST on industries

Natural Stealite is used in various industries:

Ceramic and Tiles: Sterlite is used as raw material. GST helps manufacturers to claim ITC which makes the production cost more balanced.

Cosmetics and Talcum powder: As Stealite is the main ingredient in talc. GST makes sure proper classification and tax credit for cosmetic manufacturers.

Paper and Soap industry: Stealite is used as filler in paper. It is also used as a softener in soaps. GST compliance brings transparency in the supply chain.

Handicrafts and Carvings: Soapstone is used by artists for sculptures and Carvings. GST is a burden on small craftsmen unless they are exempt under the threshold limit.

Exporters: GST rate is zero for exports. This means exporters can either claim a refund of GST paid on raw materials or purchase without paying GST under special provisions.

How to find GST Rate and HSN Code easily ?

Finding the correct GST rate and HSN code for natural Stealite is simple. You can find it by:

GST portal: The official GST portal has a search tool where you can type Stealite or HSN 2526 to see the applicable rate.

CBIC website: The central board of Indirect taxes and Customs releases notifications and circular with revised rates.

Mobile Apps: There are various apps available on playstore and appstore where you can find GST rates by product name or HSN code.

GST Expert: You can consult a tax expert if dealing with multiple minerals

Key compliance tips for businesses

To avoid penalties and stay compliant business should ensure:

Mentioning HSN Code 2526 on invoices to ensure correct classification
Keep records of all purchases and sales, especially invoice with GST details.
File GST returns on time to avoid penalty and interest.
Double check supplier’s details to ensure they are GST registered or you may not be able to claim ITC.
Stay updated with notifications from the GST council or CBIC as rates and exemption can change.

Conclusion

Natural Stealite is a valuable mineral which has been used for various purposes since ancient times to till date. A 5% GST rate is imposed on it which is much lower than other minerals under chapter 25. Larger businesses can claim ITC and small traders can opt for composition schemes to reduce tax burden. One can easily find GST rate for Stealite through GST portal or CBIC website. Businesses can ensure smooth operation by timely filling, accurate classification etc. Always stay compliant, stay updated and make most of the benefits for your business.