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Published on:

January 10, 2025

Viraaj Vashishth

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Soyabean HSN Code and GST Rate – 1201

India relies heavily on soyabeans as they are the main source of oil, protein, and other industrial materials making soyabeans one of the key agricultural products. Being highly sought after in the domestic and international market, it was imperative for the Government of India to deploy the HSN system within the GST framework in order to ensure maximum transparency, amongst taxation processes and other. This article has deep insights into soyabean HSN code (1201) as well as its GST rates which will prove practical for anyone interacting with soybeans on a professional level such as traders and exporters.

Understanding HSN Code 1201

What is an HSN Code?

HSN or Harmonized System of Nomenclature is a classification system that enables international trade to go through with utmost ease as goods get properly classified. In India this greatly helps with trade, taxation and ensuring everyone follows the GST regime as all products are categorized under unique codes.

Breakdown of HSN Code 1201

Chapter 12 of the HSN Framework covers soyabeans and prides itself on having a code of 1201, below are the subsets it covers:

1. Chapter 12: Oil seeds and oleaginous fruits; miscellaneous grains, seeds, and fruits.

2. HSN Code 1201: Soybeans either broken or unbroken.

In several regions across the globe it would become easier to identify soybeans and soy products thanks to the uniformity this system of classification introduced.

‍You Can Also Read: Rice HSN Code & GST Rate - 1006

GST Rate on Soyabeans under HSN Code 1201

Applicable GST Rates

Soyabean crops that come under the HSN code 1201 are taxed on the basis of their processing and end use.

HSN Code	Description	Rate (%)	Effective Date
1201	Soya Beans, Whether Or Not Broken	5	01/07/2017
120100	Soya Beans, Whether Or Not Broken	5	01/07/2017
12010010	Soya Beans, Whether Or Not Broken Soya Beans, Whether Or Not Broken : Of Seed Quality	5	01/07/2017
12010090	Soya Beans, Whether Or Not Broken Soya Beans, Whether Or Not Broken : Other	5	01/07/2017
120110	Seed	5	01/07/2017
12011000	Seed	5	01/07/2017
120190	Other	5	01/07/2017
12019000	Other	5	01/07/2017

Key Highlights:

1. Unprocessed Soyabeans: Unprocessed Soyabeans are considerate as a necessity to agricultural producers and hence the GST Harshall be 0%, thus supporting the very farmers in question and relieving them financially.

2. Processed Soyabeans: There may be differences in such derivative products like the soybean oil or meal attracting 5%-18% GST rates depending on the processing done to it.

Clarifications on GST Exemptions

Such goods like unprocessed soyabeans are exempt, ensuring a low cost for consumers while promoting farming activities. Businesses seeking to make profits from selling processed soyabean products must then be compliant with the gst rates

Impact of GST on Soyabean Trade and Industry

Benefits for Stakeholders

1. Simplified Tax Structure: The HSN code 1201 and its accompanying gst rates in the class of soyabeans brings a significant degree of uniformity therefore increasing efficiency.

2. Improved Transparency: There is greater support for farmers and traders that comes from proper documentation compliance as opposed to ignoring taxes.

3. Supply Chain Efficiency: The supply chain and logistics associated with soyabean and soyabean products have improved due to the gst.

Obstacles Faced

1. Compliance Gaps: Compliance with GST requirements is often complicated by non- comprehension for small-scale farmers and traders.

2. Knowledge Gaps: Opportunities for claiming tax benefits from ITC and documentation can be wasted because of lack of knowledge.

Exporting and Importing Ability

For India, soybeans are a key export. The mandatory compliance with the 1201 soybeans code ensured that international trading of goods was at the same time brought in within the global market requirements within the framework of its gst system.

‍You Can Also Read: GST on Vegetables and Fruits with HSN Code

Conclusion

The use of the HSN code 1201 on soyabean products is an essential part of the overall framework of GST, in the sense that it allows agribusinesses to continue to trade in soyabeans – one of the most prized commodities in india. There is no GST charge on unprocessed soyabeans, and the rate that is imposed on processed derivatives varies, showing that the tax structure serves the farmers as well as the businesses. Adequate usage of HSN code and good documentation ensures smooth transactions and maximum gains under the GST structure. All the involved parties must make an effort to understand the framework and its essentials in a bid to avoid being locked out of trade because of its implementability issues.

FAQs

1. What is the soyabean HSN code under GST?

The Soyabean HSN code under GST is 1201.

2. What is the GST rate for soybeans under the Soybeans HSN Code 1201?

For soybeans that are not processed, they have a tax on sales of 0% whereas the sales tax for processed products ranges from 5 to 18 percent.

3. Are soybean seeds included in HSN code 1201?

Yes, soybean seed HSN code is also classified under 1201.

4. Is there any GST exemption for soyabeans?

Yes, unprocessed soyabeans and soyabean HSN code 1201 are exempt from GST.

5. What GST rate applies to processed soyabean products?

Processed soyabean products like soybean oil are taxed between 5% and 18% under GST.

6. Why is HSN code 1201 significant for soyabean trade?

The 1201 HSN code standardizes soyabean classification for taxation and international trade compliance.

7. Can traders claim Input Tax Credit (ITC) on soyabean GST?

Yes, ITC can be claimed on GST paid for inputs used in processed soyabean production.

8. How does the soyabean GST rate affect farmers?

The 0% GST rate on unprocessed soyabeans reduces financial burdens on farmers and encourages production.

9. Do exporters need to mention HSN code 1201 for soyabeans?

Yes, exporters must include soyabean HSN code 1201 in their documentation for smooth trade processes.

10. Are there recent changes in the soyabean GST rate?

No significant changes have been made recently to the soyabean GST rate under HSN code 1201.

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