HSN (Goods)
ITC Eligible
RCM Applicable

500400

SILK YARN (OTHER THAN YARN SPUN FROM SILK WASTE) NOT PUT UP FOR RETAIL SALE :

GST Rate
18%
Tax BreakdownTotal: 18%
CGST: 9%
SGST: 9%

Tax Calculator for 500400

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E-Way Bill Rules

For silk yarn (other than yarn spun from silk waste) not put up for retail sale :, the E-Way Bill threshold is ₹50,000. Since the rate is 18%, you must generate a bill if the Taxable Value exceeds ₹42,372.

Example Calculation

  • Base Value: 42,372
  • + GST (18%): 7,626.96
  • Total Invoice: ~₹50,000

Invoice Example

Breakdown for a sample invoice value of ₹1,000:

Taxable Value₹1,000.00
GST (18%)+ ₹180
Total Payable1180

Why is RCM Applicable?

Since this is a specific category (likely Transport or Legal), the recipient pays the tax directly.

Visual Guide

How Reverse Charge (RCM) Works

Supplier
No Tax
You
🏛️
Govt

Can I claim ITC?

Yes, if used for business. This reduces your final cash liability.

Visual Guide

Input Tax Credit (ITC) Logic

1. Tax Paid on Purchase- ₹180
2. Tax Collected on Sales+ ₹300
Net Payable to Govt₹120

Compliance & Validation

HSN 500400 falls under Chapter 50. It is mandatory to mention this code on invoices if your annual turnover exceeds ₹5 Crore. For turnover below ₹5 Crore, mentioning the 4-digit code (5004) is sufficient for B2B invoices.

Ensure that you charge 9% CGST and 9% SGST for intra-state supplies of silk yarn (other than yarn spun from silk waste) not put up for retail sale :. For inter-state supplies, the full 18% IGST applies.

Frequently Asked Questions

Q: What is the GST Rate for HSN Code 500400?

The GST rate for HSN Code 500400 (SILK YARN (OTHER THAN YARN SPUN FROM SILK WASTE) NOT PUT UP FOR RETAIL SALE :) is 18%.

Q: Is HSN 500400 eligible for Input Tax Credit (ITC)?

ITC availability is classified as 'eligible'. Generally, businesses can claim ITC unless used for personal consumption or blocked under Section 17(5).

Q: How to calculate GST amount for SILK YARN (OTHER THAN YARN SPUN FROM SILK WASTE) NOT PUT UP FOR RETAIL SALE :?

Multiply the taxable value by 0.18. For ₹1000 value, GST is ₹180.

Q: Does Reverse Charge (RCM) apply?

Yes, RCM typically applies if purchased from unregistered suppliers.