Yarn of Jute: GST Rates & HSN Code 5307 Explained

For the classification, besides sorting products across the world, the HSN code is used to differentiate one product from other products. The HSN code trades goods or services within and outside India. This code specifies the product for trading, and the code number extends as per the business to determine that the goods comply with GST. So, in this blog, we will discuss the jute HSN code 5307.

What does an HSN Code Mean?

An HSN code is an arrangement of numeric or alphanumeric identifiers assigned to a product or service type. Each level of code characterizes a category, subcategory, and item. The longer the code, the more thorough the classification. HSN codes are organized hierarchically for clarity.

Why It's Important to Use the Correct HSN Code on Your Invoice

Properly identifying the jute HSN code 5303 with the right HSN code is essential for multiple reasons:

GST Compliance: Accurately, the HSN code is mandatory for GST compliance in India. The code outlines the GST rate applicable to each product or service. Incorrect coding may lead to errors in tax rates, hypothetically resulting in penalties.
Legal Requirement: In Indian tax, the ruling classes require HSN codes on invoices. Failure to include them or using unfitting codes can result in legal issues and financial penalties.
Avoiding Tax Errors: Accurate HSN classification helps avert fleecing or undercharging of taxes on goods besides services. The right code confirms correct GST rate application and accurate tax calculation.
Customs Processing: When introducing or exporting, Indian customs establishments rely on the HSN code to assess duties. Correct coding helps streamline customs processes, reducing delays or disputes.
Audits and Record-Keeping: Correct HSN code documentation is vital for audits and record-keeping, ensuring businesses can offer accurate and verifiable records of transactions when necessary.

How to Locate the Correct HSN Code

Finding a suitable HSN code, such as the one for jute textile 5303, is essential for GST compliance and precise tax calculations. Here are some methods to help you recognize the right HSN code for your business:

Official GST Website: The GST portal is the most consistent source for HSN codes. Go to 'Search HSN Code' from the GST homepage under 'Services > User Services.' You can search by HSN or description. Select the most expedient method to discover the exact HSN code for your product or service.
Trusted Online HSN Code Finder Tools: While the GST portal is correct, navigating it can be complex. An easier substitute is using an online HSN code finder. Simply input the product report or relevant keywords to retrieve the applicable HSN code.

Suggested Read: Sack Bags HSN Code & GST Rate - 6305

HSN Code & GST Rates for Jute & Other Textile Tow & Waste

Here’s a complete list of HSN codes for Jute & Other Textile Tow & Waste along with units, GST rates under chapter 53.0 of Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn.

HSN	HSN Description	Units	CGST	SGST/UTGST	IGST
5303	Jute And Other Textile Bast Fibres
5303	All goods i.e. textile bast fibres	kg.	0.025	0.025	0.05
5303	Jute fibres, raw or processed but not spun	kg.	0	0	0
530310	Jute And Other Textile Bast Fibres, Raw Or Retted
53031010	Jute And Other Textile Bast Fibres	N.a	3%	2.50%	5%
53031090	Jute And Other Textile Bast Fibres	kg.	0	0	0
530390	Other
53039010	Jute And Other Textile Bast Fibres	kg.	0.00%	0%	0.00%
53039090	Jute And Other Textile Bast Fibres	kg.	0	0

Key Features of HSN Code

Here are certain key features of the HSN code for different products:

The HSN code is a unique code that is agreed to for different goods for trading. This code consists of 6 digits, characterized by an even number. This classifies 5000+ products so far that are accepted worldwide.
Moreover, the length of the HSN code may vary, depending on several factors, such as a greater sector of products, expanded product categories, and even the business turnover.
Under the cataloging of the HSN module, there are about 21 sections, 99 chapters, 1,244 headings, and 5,244 subheadings in total to facilitate worldwide trade.
The first two digits characterize the chapter; the next two digits define the category, and further extensions of codes specify more product riders or country-specific products.

Disclaimer

To the best of our knowledge, the rates recorded above, which are provided, have been revised from the declaration no. 05/2020, dated October 16, 2020. We obtained the HSN code information as of the master codes provided on the NIC's GST e-invoice system. Variations may happen as a result of government upgrades. Please keep in mind that we cannot be held accountable for any incorrect data. If you need information near the "effective date" for each GST or cess rate, please go to the CBIC website.

Conclusion

The HSN code 53071090 in Yarn Of Jute Or Of Other Textile Bast Fibres Of Heading 5303 Single Other pays the taxes on the business of their business. This code is mandatory for businesses that exceed a certain limit of Rs. 5 crore. This HSN code assists in differentiating and specifying the characteristics of products used for trading. If you get the Live Horses HSN code 53071090, your occupational goods get complete identification and recognition from a wide range of trading.

FAQs

1. What is the HSN code 53031090?

GST Rate for HSN Code 53031090 Jute, besides other textile bast fibers (excluding flax, true hemp, and ramie), raw or administered but not spun; tow and waste of these fibers (including yarn waste and garnetted stock) jut,e besides other textile bast fibers, raw or retted.

2. How much is GST on fiber?

Ready-made garments are taxed at 12% GST, while synthetic or man-made fibers and fabrics face an 18% GST rate. The standard GST rate for textile products is 12%, while 5% GST is applied if the cost of garments and footwear is less than Rs. 1,000.

3. Is jute plant fiber?

Jute is a long, soft, gleaming vegetable fiber that can be spun into bristly, strong threads. It is produced from plants in the Corchorus family, Malvaceae (Agopyan, 1988). Jute is one of the inexpensive vegetable fibers, and it is second only to cotton in the amount produced, besides the variety of its uses.

4. What is the difference between the HS code and the HSN code?

While the words "HS code" and "HSN code" are often used interchangeably, they have a subtle difference. The HS (Harmonized System Code) is a 6-digit code standardized worldwide, developed by the World Customs Organization (WCO) to classify goods in international trade. The HSN code (the harmonized system to the name code) is the same 6-lead code, but it is an accurate used word in India. In India, 2-lead extensions are used for 6-lead HSN codes, creating an 8-lead ITC-HS code, used for more detailed product classification for GST purposes.

5. How can I check the HSN code?

Login to the GST Portal with valid credentials. Click the Services > User Services > Search HSN Code option. Note: You can explore for a particular HSN Code of specific goods or services in pre-login mode on the GST Portal by Navigating to Services > User Services > Search HSN Code option.