Understanding GST Rates and HSN Code for Wheat Flour (Atta) in India
This article explains the Goods and Services Tax (GST) implications for wheat flour, or atta, in India. It details how GST rates are determined by factors such as brand registration and packaging, outlining conditions under which atta may be exempt from tax. Key information on HSN codes and rates for both branded and unbranded atta, along with related machinery, is provided to offer a comprehensive understanding of the taxation framework.
The Goods and Services Tax (GST) applied to wheat flour, commonly known as atta, is determined by whether the manufacturer uses a registered brand name with an enforceable claim. This article will clarify the definition of atta and elaborate on its taxation under the GST regime in India, noting that similar GST rates apply to other wheat flour varieties like maida and sooji (rawa).
Defining Wheat Flour (Atta)
Flours are classified based on the level of grain processing. Wheat flour, for instance, is a whole grain product encompassing the germ, endosperm, and bran. Key variations include atta, maida, and sooji or rawa.
GST Taxation Scope for Atta
Wheat flour (atta) that is packaged in unit containers under a registered brand name is subject to a 5% GST. A 'unit container' can include various packaging types such as tins, cans, bags, cartons, drums, canisters, or barrels, specifically designed for a particular quantity of atta.
A registered brand name is defined as any distinguishing mark, symbol, label, or word that links the atta to its owner. As of May 2017, such a brand must be formally registered under legal frameworks like the Trade Marks Act of 1999 or the Copyright Act of 1957, or any similar international law.
However, the owner of a registered brand name can choose to waive their rights under specific conditions:
- Submitting an affidavit to the jurisdictional commissioner, voluntarily relinquishing enforceable rights or actionable claims on the brand name.
- Clearly stating on the atta packaging, in both local and English languages, that the brand rights have been voluntarily foregone.
Atta sales by unregistered manufacturers are exempt from GST. Additionally, atta supplies are exempt under these circumstances:
- When atta is supplied unpackaged and unbranded.
- When atta is supplied unpackaged but has a brand name.
- When atta is supplied in unit containers but without a brand name.
- When atta is supplied in unit containers with a brand name, but all enforceable rights or actionable claims to that brand have been explicitly waived.
GST Rate and HSN Code for Atta
| Category | Atta GST Rate | HSN Code |
|---|---|---|
| Branded atta (pre-packaged and labelled) | 5% | 1101 |
| Unbranded atta (other than pre-packaged and labelled) | Exempted from GST | 1101 |
Prevent the chances of getting GST notices up to 80% Automate basic tasks using GL-Stream Try it now
Frequently Asked Questions on Atta and GST
What is the GST rate for Atta Chakki machinery?
Flour mill machinery, such as Atta Chakki, is subject to a 5% GST rate, identified by HSN Code 8437.
Is unbranded wheat flour subject to GST?
Unbranded atta is exempt from GST.
What GST applies to branded atta like Aashirvaad?
Since Aashirvaad Atta is sold in branded unit containers, it incurs a 5% GST.