Chapter 8 - GST Rates & HSN Code for Dried Fruits

• Dried fruits fall under Chapter 8, with different codes based on type and processing.
• 5% for unprocessed and unbranded dried fruits, while processed and packaged varieties attract 12% GST.
• Businesses can claim ITC on dried fruit purchases if used for resale, processing, or manufacturing.
• Proper registration, invoicing, tax filings, and E-Way bills are required for dried fruit businesses.
• Higher GST on packaged dried fruits increases consumer costs, while bulk buyers benefit from ITC in B2B transactions.

Dried fruits are widely consumed for their nutritional benefits and long shelf life. They are used in households, food processing industries, and confectionery businesses. In India, dried fruits are classified under the Goods and Services Tax (GST) system, and their tax rates vary based on type, processing level, and packaging.For businesses involved in the trading, processing, or retailing dried fruits, understanding the correct HSN (Harmonized System of Nomenclature) codes and applicable GST rates is crucial for tax compliance, invoicing, and input tax credit (ITC) claims.This guide provides a detailed breakdown of GST rates, HSN classification, and compliance requirements for dried fruit in India.

Dried fruits fall under Chapter 8 of the HSN classification system, which covers edible fruit, nuts, and peel of citrus fruit or melons. However, GST rates depend on whether the dried fruit is processed or unprocessed, branded or unbranded, and packaged or loose.

GST Rates for Different Types of Dried Fruits

Note:

• Unbranded and loosely sold dried fruits attract a 5% GST rate.
• Branded, processed, or packaged dried fruits fall under the 12% GST slab.

The GST rate on dried fruits is based on factors, such as: Processing Level Raw or minimally processed dried fruits attract lower GST (5%), while processed and packaged varieties are taxed higher (12%). Branding & Packaging Branded and packaged dried fruits are considered premium products and fall under the 12% GST rate. Commercial Use Dried fruits used in the food processing and confectionery industry are generally classified under higher GST rates due to their value addition.This classification helps balance affordability for consumers while ensuring fair taxation for businesses selling value-added products. GST Compliance for Dried Fruit Businesses Businesses dealing in dried fruits must comply with GST regulations to ensure smooth operations and avoid penalties. Key compliance requirements include: GST Registration

• Businesses with an annual turnover exceeding ₹40 lakh (₹20 lakh for special category states) must register under GST.
• E-commerce sellers must register for GST regardless of turnover.

Tax Invoicing Requirements

• Every tax invoice must include:

• Businesses must retain invoices for at least six years for audit and compliance.

GST Return Filing

• Businesses dealing in dried fruit must file periodic GST returns, including:

• An E-Way Bill is required for transporting dried fruits across states if the shipment value exceeds ₹50,000.
• It must include invoice details, vehicle information, and transporter details.

Can Businesses Claim Input Tax Credit on Dried Fruits? Businesses dealing with dried fruits must understand the conditions under which they can claim Input Tax Credit (ITC) to optimise tax savings and ensure GST compliance. Here’s how ITC applies to dried fruit purchases and when it cannot be claimed: ITC Eligibility for Dried Fruits A business can claim ITC on dried fruit purchases if:

• The dried fruit is used for manufacturing, resale, or trade.
• A valid GST invoice with HSN code and tax details is available.
• The business is registered under GST and files return correctly.

When ITC Cannot Be Claimed

• If the dried fruit is for personal consumption.
• If the business is under the GST Composition Scheme, which restricts ITC claims.
• If proper tax invoices and records are not maintained.

Impact of GST on Dried Fruit Prices Understanding the impact of GST on dried fruit prices is crucial for all stakeholders, from farmers and traders to manufacturers, retailers, and consumers. Here's how different tax rates influence pricing across the supply chain: For Farmers & Traders

• Unprocessed dried fruits remain affordable due to the 5% GST rate, ensuring that small traders and farmers do not face excessive tax burdens.
• Loose and unbranded dried fruits maintain lower prices due to exemption from higher GST slabs.

For Processors & Manufacturers

• Packaged and value-added dried fruits attract 12% GST, leading to higher product costs.
• ITC benefits help offset tax costs, allowing businesses to remain competitive in the market.

For Retailers & Consumers

• Branded dried fruit products are more expensive due to higher GST rates.
• Bulk buyers (B2B transactions) benefit from ITC claims, while individual consumers bear the full tax burden.

The GST structure for dried fruits aims to balance affordability for consumers while ensuring fair taxation on value-added products. Businesses involved in farming, trading, processing, and retailing of dried fruits must stay updated on GST rates, classify products correctly under HSN codes, and comply with tax regulations to avoid penalties.Proper record-keeping, tax planning, invoicing, and ITC claims can help businesses optimise costs and stay competitive in the market. As GST laws evolve, staying informed ensures compliance and seamless operations for all stakeholders in the dried fruit industry. Use a GST Calculator to determine tax liabilities accurately and plan finances effectively.