As we know, Medicines and medical kits are the life-savers and therefore it is necessary to have an idea of what rate they are taxed at as eventually, it is going to influence the end price at which they are sold. Medicines and other medical kits for human and veterinary medicine are taxed at four tax slabs NIL, 5%, 12%, and 18%. In this article, we will discuss GST on Mask and the significance of GST Registration.
Before discussing the significant factors related to GST on Mask, first, we discuss the concept of GST.
Comprehend about GST
GST is understood to be the Goods and Services Tax which is levied on the supply of goods and services. The primary matter of this taxation system is to control the cascading consequence of other indirect taxes. GST is required only on value addition at each stage. Although, GST Registration is crucial for registering any business.
GST on Masks
The Indian government currently charges a GST of 5 percent for surgical masks. Whereas, The implementation of GST has highly profited the medical sector as it has completely eradicated the cascading effect of tax and also the warehousing of medicines now attracts low GST rates.
GST on Cotton face masks
The Indian government presently charges a GST of 5 percent for cotton masks. Whereas Woven fabrics of cotton; HSN code varies depending upon the extent of cotton used and weight.
GST on Face masks other than cotton
The government currently charges a GST of 12 percent for masks. Whereas Other breathing appliances and gas masks, eliminating protective masks having neither mechanical parts nor replaceable filters.
SAC Code applicable to Surgical Mask
The following SAC (Service Accounting Code) has been established for the different Books in India.
- SAC Code 3304 surgical mask services
- SAC Code 330499– Mask and medical equipment
- SAC Code 901920- Surgical mask and various protected masks.
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