HSN Code for Costume Sold as Part of Festival Kit: A Comprehensive Guide

The festive season is upon us, and businesses are gearing up to sell their festival kits, including costumes, accessories, and props. To ensure compliance with the GST Act, it's essential to know the correct HSN code for your products. In this article, we'll delve into the HSN codes for costumes, accessories, and props, and provide you with a comprehensive guide to help you navigate the process.

Section 1: Outright Sale of Goods (HSN Codes)

Costumes sold as part of a festival kit fall under the category of 'Costumes (Knitted/Stretchable)' or 'Costumes (Non-Knitted/Woven)'. To determine the correct HSN code, you can refer to the COMPLETE GST & BILLING CODE MASTER SHEET, which categorizes costumes under the following HSN codes:

• 6114: Costumes (Knitted/Stretchable) - e.g., Spandex, T-shirt material
• 6211: Costumes (Non-Knitted/Woven) - e.g., Cotton, Silk, Tailored suits

The GST rate for these codes is 5% or 18%, depending on the sale value per piece. If the sale value is ≤ ₹2,500, the GST rate is 5%. If the sale value is > ₹2,500, the GST rate is 18%.

Section 2: Rental Services (SAC Codes)

If you're renting out costumes, accessories, or props as part of your festival kit, you'll need to use the SAC codes for rental services. The SAC codes for rental services are as follows:

• 997326: Rental of Costumes & Apparels - Leasing or rental services concerning textiles, clothing, and footwear
• 997324: Rental of Props & Carnival Equipment - Leasing or rental services concerning pleasure and leisure equipment
• 997329: Rental of Jewellery & Misc Accessories - Leasing or rental services concerning other goods (catch-all category)

The GST rate for these codes is 18%.

Creating Professional Bills for Your Festival Kit Sales

When selling your festival kits, it's essential to create professional bills to ensure compliance with the GST Act. You can use helpful tools like billformat.in to create professional bill templates that meet the requirements of the GST Act.

Managing Rental Billing with Rent Software

If you're renting out costumes, accessories, or props as part of your festival kit, you'll need to use rental billing software to manage your rentals. Tools like rentsoftware.in help businesses manage rental billing and ensure compliance with the GST Act.

Conclusion

In conclusion, understanding the HSN code for your festival kit products is crucial to ensure compliance with the GST Act. By following the guidelines outlined in this article, you'll be able to determine the correct HSN code for your costumes, accessories, and props, and create professional bills to meet the requirements of the GST Act.