HSN Code for Umbrellas: Everything You Need to Know

Explore the umbrella HSN code: GST rates, classification benefits, and operational mechanics.
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3 min
06-July-2024

What is an umbrella HSN code?

An umbrella HSN code is a Harmonized System of Nomenclature (HSN) code used to categorise goods under a single classification for taxation purposes. This code simplifies the identification and taxation process by providing a standardised description of products. HSN codes are essential for businesses to comply with GST regulations. For umbrellas, the HSN code helps in determining the applicable GST rate, facilitating smoother tax calculations and compliance.

GST rate and HSN code for umbrellas

Product HSN code GST rate
Umbrellas 6601 18%
Umbrella parts 6603 18%

 

Purpose and benefits of umbrella HSN codes

  • Simplified taxation: Streamlines the tax process by standardising product classifications.
  • Compliance: Helps businesses comply with GST regulations efficiently.
  • International trade: Facilitates easier trade and customs processes.
  • Transparency: Ensures clear and consistent tax rates across the industry.
  • Efficiency: Reduces errors in tax calculations and submissions.

How do umbrella HSN codes work?

  • Classification: Assigns a unique code to each product category.
  • Standardisation: Ensures uniformity in product descriptions and tax rates.
  • Automation: Enables automated tax calculations and compliance.
  • Documentation: Simplifies record-keeping and reporting for businesses.
  • Customs: Eases customs procedures by providing clear product information.

Industries and sectors that benefit from Umbrella HSN codes

  • Retail: Facilitates easier tax compliance for retailers.
  • Manufacturing: Helps manufacturers streamline their tax processes.
  • Imports and exports: Simplifies customs and international trade procedures.
  • E-commerce: Ensures accurate tax calculations for online sales.
  • Wholesale: Aids wholesalers in maintaining compliance with GST regulations.

Potential issues or challenges with Umbrella HSN codes

  • Complexity: Some businesses may find it challenging to classify products correctly.
  • Updates: Regular updates to HSN codes may require businesses to stay informed.
  • Errors: Incorrect classification can lead to tax calculation errors and penalties.
  • Training: Employees need training to understand and apply HSN codes accurately.
  • Integration: Adapting existing systems to incorporate HSN codes can be resource-intensive.

Conclusion

Umbrella HSN codes play a crucial role in simplifying the GST process for various industries, aiding in compliance and efficiency. However, businesses must navigate potential challenges such as classification accuracy and system integration. Effective implementation of HSN codes can significantly enhance tax processes, thereby supporting business operations, including securing a business loan by maintaining accurate financial records.

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Frequently asked questions

What is the 6-digit HSN code for an umbrella?
The HSN code 6601 categorises umbrellas and sun umbrellas for international trade. It consists of two parts: "66" denotes the chapter (Umbrellas, sun umbrellas, walking-sticks, seat-sticks, whips, riding-crops, and parts thereof), and "01" specifies the heading (specifically umbrellas and sun umbrellas). The final "00" represents the subheading specifically for umbrellas, ensuring standardised classification and facilitation of trade across borders.
What is the HSN code 66011000?
The HSN code 66011000 pertains to "garden or similar umbrellas." This classification under the Harmonized System of Nomenclature is used for tax purposes, helping businesses determine the applicable GST rate. Under India's GST regime, the GST rate for this HSN code is 18%, ensuring consistent and accurate taxation for these products.
What is the HSN code 66019900?
HSN code 66019900 classifies parts of umbrellas within Chapter 66 of the Harmonized System. The code "66" denotes the chapter covering umbrellas, sun umbrellas, and related items. "01" identifies the heading specifically for umbrellas, while "99" further details it under parts thereof. "00" specifies the specific product as parts of umbrellas, such as frames or handles, ensuring precise classification for international trade and customs purposes.
What is the HS code for the market umbrella?
The HS code for a market umbrella is 6601. This code is part of the Harmonized System of Nomenclature used for classifying goods in international trade. Under this classification, market umbrellas are subject to a GST rate of 18%, ensuring standardised taxation for businesses involved in manufacturing, retail, and import/export of umbrellas.
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