Understanding Goods and Services Tax on Papad: Exemption, HSN, and Rates
This article clarifies the GST status of papad in India, outlining that traditional papad is exempt from Goods and Services Tax. It details the applicable HSN code of 19059040 for nil-rated papads. Conversely, extruded varieties like Kachri and Kachari papads (fryums) are subject to an 18% GST under HSN code 19059030, a distinction confirmed by CBIC Circular No. 189/01/2023-GST.
Papad, a widely consumed snack in India, frequently raises questions regarding its Goods and Services Tax (GST) status. This article clarifies the GST applicability, relevant HSN code, and tax rates for papad and similar products.
GST Exemption for Papad
Currently, traditional papad is exempt from GST. However, specific varieties like Kachri and Kachari papads, often referred to as fryums, which are produced using an extrusion manufacturing process, are subject to GST.
HSN Codes and Applicable GST Rates for Papad Products
For traditional papad, the Harmonised System of Nomenclature (HSN) code is 19059040. These products benefit from a 0% GST rate, classifying them as nil-rated. In contrast, Kachri and Kachari papads (fryums), falling under HSN code 19059030, are subject to a higher GST rate of 18%. This distinction was affirmed by CBIC Circular No. 189/01/2023-GST.