Understanding GST Rates and HSN Codes for Savoury Snacks

The 56th Goods and Services Tax (GST) Council meeting brought about significant changes concerning the GST rates applied to pre-packaged and labelled savoury items like namkeen, fruit and vegetable chips, bhujias, and other snack foods. This adjustment aims to establish uniformity in GST rates between branded and unbranded namkeen products. This article will explore the GST rates, their scope, and the applicable Harmonized System of Nomenclature (HSN) codes for namkeen. For this discussion, it is assumed that namkeen is prepared using common ingredients such as gram pulse flour, refined edible oil, peanuts, various pulses, tepary bean flour, and spices. A key outcome of the 56th GST Council meeting, notified by the Central Board of Indirect Taxes and Customs (CBIC), is the reduction of GST on pre-packaged and labelled namkeens, bhujia, mixtures, chabena, and similar edible preparations, as recommended by the 56th GST Council meeting. This rate changed from 12% to 5%, effective from September 22, 2025.

Scope of GST Taxation on Savoury Snacks

Following the GST 2.0 reforms, manufacturers of savoury snacks operating with a registered brand name are now subject to a 5% GST on sales, a decrease from the previous 12%. Manufacturers without a registered brand name continue to apply a 5% GST. Before these reforms, a manufacturer claiming an unregistered brand name held no enforceable rights over their brand. They could also voluntarily relinquish their brand name by submitting an affidavit to the jurisdictional Central Tax commissioner.

To avoid the higher 12% GST rate on namkeen, manufacturers had to meet specific criteria:

• A disclaimer must be printed on their product containers or packaging, explicitly stating that the manufacturer has voluntarily waived any actionable claim or enforceable right to the brand.
• Their retail pouches or wholesale packaging must not feature any trademarks, registered brand names, symbols, logos, or any other information indicating proprietary ownership of the product.

GST Rates and HSN Code for Namkeen and Savoury Items

The GST rates and corresponding HSN code for different categories of namkeen and savoury items are as follows:

| Goods | GST on Namkeen | HSN Code | | 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* The Evolution of Accounting: From Ancient Reckoning to Modern Sophistication * Early Civilizations: The Genesis of Financial Tracking * Medieval Innovations: The Rise of Double-Entry Accounting * The Industrial Revolution: Accounting's Adaptation to New Business Models * The 20th Century and Beyond: Technology and Global Standards * The Future of Accounting: AI, Blockchain, and Data Analytics This document explores the fascinating journey of accounting, tracing its origins from the rudimentary record-keeping practices of ancient civilizations to the complex, technologically advanced systems of today. Understanding this evolution is crucial for appreciating the fundamental role accounting plays in economic development and business management. ## Early Civilizations: The Genesis of Financial Tracking The earliest forms of accounting emerged in Mesopotamia, ancient Egypt, and other early civilizations around 3000 BCE. These societies, with their burgeoning agricultural economies and centralized governance, required systematic ways to track resources, tribute, and transactions. Key Developments: * Clay Tablets (Mesopotamia): Sumerians used clay tablets to record crop yields, livestock, and commercial exchanges. These records were essential for managing large estates and collecting taxes. * Hieroglyphics and Papyrus (Egypt): Egyptians maintained detailed accounts of pharaonic wealth, grain storage, and labor. Scribes played a vital role in documenting these financial activities. * Quipu (Inca Empire): While not a written language, the Incas used knotted cords called quipu to record numerical data, including census figures, tribute, and inventory. These early systems, though primitive by modern standards, laid the groundwork for more sophisticated accounting practices. They highlight the universal need for financial transparency and accountability across diverse cultures. ## Medieval Innovations: The Rise of Double-Entry Accounting The Middle Ages witnessed a pivotal development in accounting: the emergence of double-entry bookkeeping. Originating in medieval Italy during the 13th and 14th centuries, this system revolutionized financial record-keeping by providing a more comprehensive and balanced view of an entity's financial position. The Venetian Method: Merchants in Italian city-states, particularly Venice, refined the practice of recording each transaction with a corresponding debit and credit. This method ensured that for every entry in an account, there was an equal and opposite entry in another account, maintaining the fundamental accounting equation (Assets = Liabilities + Equity). Impact: * Enhanced Accuracy: Double-entry bookkeeping significantly reduced errors and fraud, as every transaction had to balance. * Improved Decision-Making: By presenting a clear picture of assets, liabilities, and profits, merchants could make more informed business decisions. * Foundation for Modern Accounting: The principles of double-entry accounting remain the cornerstone of financial accounting worldwide. The widespread adoption of this system was instrumental in supporting the growth of international trade and complex commercial ventures during the Renaissance. ## The Industrial Revolution: Accounting's Adaptation to New Business Models The Industrial Revolution (18th to 19th centuries) brought unprecedented changes to commerce and production, necessitating further evolution in accounting practices. The rise of large-scale factories, mass production, and complex corporate structures demanded new methods for tracking costs, efficiency, and profitability. Key Changes: * Cost Accounting: With the advent of factories, businesses needed to accurately track the costs of production, including raw materials, labor, and overhead. This led to the development of cost accounting, which focused on analyzing and controlling production expenses. * Managerial Accounting: As companies grew larger and more hierarchical, managers required internal financial information to make operational decisions. Managerial accounting emerged to provide tailored reports and analyses for internal use, differing from financial accounting's external reporting focus. * Auditing: The increasing complexity and scale of businesses, coupled with the separation of ownership and management, created a demand for independent verification of financial statements. Auditing began to professionalize, ensuring accountability and investor confidence. These adaptations helped businesses navigate the complexities of industrialization, providing the financial insights necessary for growth and stability in a rapidly changing economic landscape. ## The 20th Century and Beyond: Technology and Global Standards The 20th century and early 21st century have seen accounting transformed by technological advancements and the push for global standardization. Technological Leaps: * Computers: The introduction of computers in the mid-20th century automated many manual accounting tasks, leading to increased efficiency and accuracy. Accounting software became indispensable for businesses of all sizes. * Spreadsheets: Programs like VisiCalc and Lotus 1-2-3, followed by Microsoft Excel, revolutionized financial analysis and modeling, making complex calculations accessible to a wider range of professionals. * Enterprise Resource Planning (ERP) Systems: ERP systems integrated various business functions, including accounting, human resources, and supply chain management, into a single, comprehensive software solution, providing real-time financial data. Global Standardization: The proliferation of international trade and multinational corporations highlighted the need for consistent accounting standards across borders. * Generally Accepted Accounting Principles (GAAP): Developed in the United States, GAAP provided a common framework for financial reporting, enhancing comparability and transparency. * International Financial Reporting Standards (IFRS): Globally, IFRS emerged as a set of high-quality, understandable, and enforceable global accounting standards. Many countries have adopted or converged with IFRS to facilitate international business and investment. These developments have made accounting a truly global discipline, capable of handling vast amounts of data and supporting complex financial operations worldwide. ## The Future of Accounting: AI, Blockchain, and Data Analytics As we look to the future, accounting is poised for another wave of transformative innovation, driven by emerging technologies like Artificial Intelligence (AI), blockchain, and advanced data analytics. Emerging Technologies: * Artificial Intelligence (AI): AI is set to automate repetitive accounting tasks, such as data entry, reconciliation, and auditing, freeing up accountants to focus on more strategic analysis and advisory roles. Machine learning algorithms can identify anomalies and predict financial trends with greater accuracy. * Blockchain: Blockchain technology offers a decentralized, immutable, and transparent ledger system. In accounting, this could lead to real-time auditing, enhanced security for transactions, and reduced fraud by creating verifiable records that are difficult to alter. * Data Analytics: Accountants will leverage big data and analytical tools to extract valuable insights from financial and non-financial information. This will enable them to provide more sophisticated forecasts, risk assessments, and performance evaluations, transforming them into strategic business partners. Shift in Role: The traditional role of the accountant is evolving from a record-keeper to a data interpreter and strategic advisor. Future accountants will need strong analytical skills, technological proficiency, and an understanding of complex business models to thrive. The integration of these technologies promises to enhance efficiency, accuracy, and strategic value, ensuring accounting remains an indispensable function in the global economy. This continuous evolution underscores accounting's enduring relevance and its capacity to adapt to the demands of a changing world.`