Methi, or fenugreek, is categorised under the Harmonized System of Nomenclature (HSN) code 0910 and attracts a 5% GST. The HSN is an internationally recognised system that classifies and codes products in a standard way.
Are you planning to purchase or sell methi but are not sure about the GST rate on methi? Continue reading to learn more about the Methi GST rate and HSN code.
Methi falls under the HSN code 0910 and attracts 5% GST.
Scope: HSN code 0910 covers coffee, tea, mate, and spices. Spices refer to plant products rich in aromatic oils, mainly used for flavouring. They can be whole, crushed, or powdered. Additionally, adding substances to spices doesn’t change their classification as long as their essential nature remains, and this also includes products known as ‘masalas’.
Accordingly, Methi is taxable under HSN code 0910 and attracts 5% GST.
Invoicing: The invoice should include details like the supplier’s and recipient’s GSTIN, description of goods — the type of Methi, quantity, value, applicable GST rates, and taxes.
Place of Supply: GST is a destination-based tax, which means that methi is taxed at the location of consumption rather than that of production.
Transportation: Under the GST law, transporting items worth more than Rs. 50,000 (in a single invoice, bill, or delivery challan) within or between states requires an e-way bill. This also holds good for transporting methi. This ensures that the goods are transported properly and helps avoid any potential penalties.
Here is a tabular representation of Methi HSN code and GST rate:
Description | HSN Code | GST% |
Methi seeds | 0910 99 12 | 5% |
Methi powder | 0910 99 24 | 5% |
Input tax credit (ITC) is the GST that an enterprise pays on the inward purchase of goods/services for use in furtherance of business that they can use to reduce their output tax liability at the time of making their sales.
If you buy Methi from a recognised dealer and pay taxes on the purchase, you also collect tax on selling the methi. The output tax amount is subtracted from the taxes paid at the time of purchase, and the remaining tax burden is paid to the government. This process is known as the claiming of ITC.
Here are some more points to be noted while claiming ITC on Methi:
Yes, Methi is taxable in India at 5% GST.
Kasuri Methi, or dried fenugreek leaves, fall under HSN code 0910.
Ginger, thyme, saffron, and turmeric are some of the other spices that fall under HSN code 0910.