GST Rates & HSN Code of Aquatic Invertebrates (308) The aquatic invertebrates form a big portion of sea food and marine export of India. Gradually developing from octopus and squid to oysters and sea cucumbers, the products are well-traded on the domestic and international markets. Their category under GST is that of HSN code 0308 , and the rate of tax applies according to the condition, as well as the level of processing of the product.
You will need to know how to write your invoice correctly, and ensure that the payment of tax and compliance are done correctly. In this case, you should assume that you are a seafood trader, exporter, importer, or any other processing unit.
Let’s break it down clearly.
HSN Code 0308 - Classification Overview HSN Code 0308 covers:
Other fresh, chilled, kind frozen, dried, salted, or in brine, other than crustacean and mollusc aquatic invertebrates.
Usually classifiable under this category are:
Sea cucumbers Sea urchins Jellyfish Certain molluscs are not covered elsewhere Other marine invertebrates Prawns and crabs would usually be under HSN 0306, and oysters and mussels under 0307. According to Mill and Edworthy (2003), HSN 0308 is particularly applied to aquatic invertebrates that the two headings do not treat.
HSN Code Table for Aquatic Invertebrates (0308) Product Description HSN Code GST Rate Live aquatic invertebrates 308 5% Fresh or chilled aquatic invertebrates 308 5% Frozen aquatic invertebrates 308 5% Dried, salted, or in brine 308 5%
Rate of GST on Comparing Aquatic Invertebrates The GST rate that will be used on the Aquatic invertebrates is:
5% GST
This typically applies to:
Unprocessed marine invertebrates Fresh or frozen products Dried or salted variants Important Notes 1. If the product is supplied without a registered brand name or under certain exemption categories, conditions may apply.
2. If significant processing changes the nature of the product, classification may shift to another chapter.
3. Input Tax Credit (ITC) is usually provided on the successful provision of the business.
Proper classification is needed, as improper classification may result in tax demand notices and fines.
What is HSN Code 0308? Harmonized System of Nomenclature, or HSN, is a world-renowned product classification method which is elaborated by the World Customs Organisation.
In India, HSN is also applied in GST, wherein it is utilised to:
Identify goods Determine applicable GST rate Standardise invoicing Enable smooth customs and trade operations This Code (HSN Code 0308) is included in Chapter 3 that contains marine and aquatic goods.
The proper reporting on HSN is compulsory in companies that are in the business of seafood trading:
Failure to quote the correct HSN can lead to compliance issues.
Importation and Exportation of Aquatic Invertebrates GST Imports When aquatic invertebrates are imported into India:
Basic Customs Duty (if applicable) is charged IGST is imposed at 5% of the assessable value together with the customs duty. IGST paid upon importation can be availed as ITC to the importer, provided he is eligible.
Exports GST considers exports at zero rates. This means:
GST is not charged to the foreign buyer. Exporters can claim a refund of accumulated ITC. Alternatively, goods can be exported under LUT without payment of IGST. Since India is a leading exporter of marine products, the exporters are required to keep relevant documents such as shipping bills, export invoices, and LUT filings .
Food Inspection Requirements of Seafood Traders The firms engaged in the trade of aquatic invertebrates under HSN 0308 should make sure:
Appropriate GST registration in case of turnover more than the threshold limit. Accurate HSN reporting in invoices Maintenance of stock and purchase records Adequate GST monthly or quarterly returns The marine exporters are subjected to examination as far as valuation, classification, and refund claims. A single mistake during the HSN code may lead to a huge delay in refunds.
Common Classification Confusion One frequent issue is confusion between:
Crustaceans 0306 Molluscs 0307 Other aquatic invertebrates 0308 Oysters, mussels, etc., were not 0308 but 0307. Similarly, prawns fall under 0306. Arachaea not in vertebrates are specially dealt with in previous headings. Before awarding a product description, businesses have to scrutinise the product descriptions.
Why Correct HSN Matters Incorrect classification can result in:
Short payment of GST Interest liability Penalty under the CGST Act Rejection of ITC Claims Delays in export refunds The compliance accuracy directly affects the working capital in industries that are typically similar with narrow margins, such as seafood, where exports are common.
Conclusion Deciding on the aquatic invertebrates of HSN code 0308 gives an applicable GST rate of 5% in the majority of the standard cases. It is categorized into live, fresh, chilled, frozen, dried, salted, or brined non-crustacean or non-molluscan aquatic invertebrates. To automate your sanction mechanisms, HSN classification, and even compliance, organize your accounting using the appropriate tools.
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FAQs 1. How does the GST of aquatic invertebrates, which are classified within the HSN 030,8 relate to it? The general levies under fresh fish (live), fresh fish (frozen), and fresh fish (dried), salted or brined aquatic invertebrates likewise consist of levies of 5 per cent.
2. Should HSN 0308 contain prawns and crabs? There are no prawns and crabs that are crustaceans in the HSN 0306.
3. Are exports of aquatic invertebrates taxable? Under GST, exports are charged no tax. Exporters can claim ITC refunds.
4. Is ITC available on aquatic invertebrates? Yes, ITC is usually accepted provided that the foods find the purpose of use in business and all the conditions of compliance are observed.
5. What would occur when the incorrect HSN code is entered? The application of the wrong HSN code can imply the demand for tax, interest, fines, and refund delays.
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