GST Rates & HSN Code for Dried, Salted, Brine Fish Dried fish, salted fish , and fish preserved in brine are common fish products sold in most parts of India, particularly the coastal regions. These products are not the same as fresh fish, as they are processed to enhance shelf life and to make transportation and storage easier.A good number of traders believe that GST does not apply to all fish products; however, they are wrong. Under GST, tax treatment depends on whether the fish is fresh or processed. When fish has been dried, salted or left in brine, then it is considered a processed product, and GST arises.
This blog addresses the GST rates and HSN code for dried, salted, and brine fish in a simple manner in order to enable traders to be aware of the rules and to remain in compliance.
What Is an HSN Code and Why Does It Matter? HSN means Harmonised System of Nomenclature . It is a system of classification of goods to be taxed, traded and accepted internationally. The GST HSN codes allow the identification of the products and their correct tax rate .
The use of the appropriate HSN code is critical since the GST invoices, returns and compliance checks are all interconnected with the classification of products. The use of the wrong code of HSN may cause a wrong calculation of taxes, GST notices, or penalties in the future. For fish traders, understanding the correct HSN code is essential for smooth GST filing.
HSN Classification for Fish and Fish Products Fish and seafood products are covered under HSN Chapter 03. This chapter includes fish sold in different forms, depending on how the product is handled or preserved.
It covers:
Fresh and chilled fish
Froze fish
Dried fish
Salted fish
Fish preserved in brine
Fresh fish and processed fish are treated differently under GST, which is why correct classification matters.
GST Treatment of Fresh Fish Fresh fish sold without any processing is generally exempt from GST. This applies when fish is sold fresh or chilled and meant for direct consumption. The exemption exists because fresh fish is treated as an essential food item.
However, once any processing is done - such as drying, salting, or preserving in brine - the fish no longer qualifies for this exemption and becomes taxable.
GST Rate for Dried, Salted, and Brine Fish Dried fish, salted fish, and fish preserved in brine are treated as processed fish products
Under GST. Because processing increases shelf life and commercial value, GST applies to these products.
The GST rate applicable is 5% . This rate applies whether the fish is sold loose or packaged, supplied in bulk, or sold to food businesses. Only exports are treated differently under GST rules.
Why GST Is Charged on These Fish Products The dried, salted and brined fish are subject to GST since it involves value addition and preservation. Moisture is removed by drying, spoilage is inhibited by stuffing with salt, and long-term storage is made possible by brining.
Because of this processing:
Shelf life increases
Additional handling and storage are required
Products are sold commercially
Due to these factors, these fish products do not fall under the GST exemption .
HSN Code for Dried, Salted, and Brined Fish The HSN Code 0305 under the GST regulations covers all the dried fish, salted fish and fish preserved in brine. The code is specifically directed to processed fish products that have been preserved by the use of drying methods, salting methods or brine storage to increase shelf life.
HSN Code 0305 contains fish that are dried or salted with or without additional salting, however, not smoked fish. The HSN code of dried fish, salted fish or brine fish is not different since all these products are under the same category, since they are processed in a similar way.
To guarantee that GST tax is properly classified on invoices and returns, traders should always use HSN 0305 on both invoices and returns to prevent inconvenience in subsequent returns.
GST Rate & HSN Code Classification for Fish Products Type of Fish Product HSN Code GST Rate GST Applicability Fresh or chilled fish (not processed) 0302 / 0303 Exempt (0%) No GST when sold fresh Dried fish 305 5% GST applicable Salted fish 305 5% GST applicable Fish preserved in brine 305 5% GST applicable Smoked fish 0305 (separate sub-category) 5% GST applicable Export of dried, salted, or brine fish 305 Zero-rated GST not charged, ITC allowed
Input Tax Credit (ITC) for Fish Traders In case you impose GST on dried, salted or brine fish, you are entitled to claim a credit of your business expenses (Input Tax Credit or ITC ). The aid in decreasing the total taxes.
ITC may be typically deductible on expenses such as packaging, transportation, cold storage, warehousing and processing service. In order to claim ITC without any hassle, proper GST invoices and timely filing of returns are necessary.
For a better understanding of GST return filing , you can refer to Swipe’s guide on GST Filing: Returns, Type & Due Dates
GST Compliance Tips for Fish Sellers To avoid GST issues, fish traders should:
Use HSN Code 0305 on invoices
5% GST on dried, salted and brine fish
Keep suitable records of purchases and sales
File GST returns on time
Late filing may result in fines. To learn how it affects the late compliance, you may read the blog os Swipe about the GST Impact on Delayed Payment Fees and Penalties
GST on Export of Dried, Salted, and Brine Fish Dried, salted, and brined fish exports are considered to be a zero-rated supply in GST. This implies that exporters are not required to pay GST on export sales, but they can still claim ITC on export inputs. To claim refunds, goods export documentation is needed.
Traders must always go to the official GST portal GST rates, HSN codes , and official notifications .
Final Thoughts Dried fish, salted fish , and fish preserved in brine are processed fish products under GST since they undergo a preservation procedure like drying or salting. These products are subject to 5% GST because of such processing and include HSN Code 0305 . And fresh fish that is sold without any type of processing is typically not subject to GST.
Using the appropriate GST rate, HSN rate and HSN code , fish traders will be able to bill properly, prevent compliance problems and get the benefits of Input Tax Credit (ITC) on the allowable expenditures.
Proper classification also enables businesses to create returns with ease and to handle their GST payments without creating hassles on itself.
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