Gift HSN Code : Applicability, HSN Code and GST Rate on Gift

Chapter	Description	HSN Code	Rate (%)	CESS (%)	Effective Date	Rate Revision
Services	Parcel Packing And Gift Wrapping	998541	5/18	Nil Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. Provided that credit of input tax charged on goods and services has not been taken [Please refer to Explanation no. (iv)]. 1. Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. tour operator service procured from another tour operator) has not been taken [Please refer to Explanation no. (iv)] 2. The bill issued for supply of this service indicates that it is inclusive of charges of accommodation and transportation required for such a tour and the amount charged in the bill is the gross amount charged for such a tour including the charges of accommodation and transportation required for such a tour.	25/01/2018	–

Chapter

Description

HSN Code

Rate (%)

CESS (%)

Effective Date

Rate Revision

Services

Parcel Packing And Gift Wrapping

998541

5/18

Nil Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. Provided that credit of input tax charged on goods and services has not been taken [Please refer to Explanation no. (iv)]. 1. Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. tour operator service procured from another tour operator) has not been taken [Please refer to Explanation no. (iv)] 2. The bill issued for supply of this service indicates that it is inclusive of charges of accommodation and transportation required for such a tour and the amount charged in the bill is the gross amount charged for such a tour including the charges of accommodation and transportation required for such a tour.

25/01/2018

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Understanding the GST on Gift Wrapping Services

While the term “gift” itself doesn’t have a specific HSN code as it encompasses a wide variety of items, the service of gift wrapping does fall under the GST framework. Based on the provided data, let’s understand the HSN code and GST rate applicable to parcel packing and gift wrapping services.

The data indicates the following for parcel packing and gift wrapping services:

HSN Code: 998541
Service Description: Parcel Packing And Gift Wrapping
GST Rate: 5% or 18%
CESS: Nil
Effective Date: 25/01/2018

It’s important to note that the GST rate for this service has two possibilities: 5% or 18%. The conditions for the 5% rate are linked to specific scenarios related to the FIFA U-17 Women’s World Cup 2020, certified by the Director (Sports), Ministry of Youth Affairs and Sports, and where input tax credit has not been taken. In general scenarios, the rate is likely to be 18%.

Therefore, if you offer or avail services related to parcel packing and gift wrapping, the applicable HSN code is 998541, and the GST rate will be either 5% under specific conditions or 18% in general cases.

FAQs

What is the HSN code for gift wrapping services?

The HSN code for parcel packing and gift wrapping services is 998541.

What is the standard GST rate on gift wrapping services?

The standard GST rate on gift wrapping services is 18%.

Is there a lower GST rate for gift wrapping?

Yes, a 5% GST rate applies if the services are directly or indirectly related to the FIFA U-17 Women’s World Cup 2020 and certified by the relevant authority, provided input tax credit has not been claimed

Is there any CESS applicable to gift wrapping services?

No, there is no CESS applicable to parcel packing and gift wrapping services according to the provided data.

When did this GST rate for gift wrapping services become effective?

The GST rate of 5% or 18% for parcel packing and gift wrapping services became effective from 25/01/2018.

Does the HSN code depend on the type of gift being wrapped?

No, the HSN code 998541 applies to the service of parcel packing and gift wrapping, regardless of the specific items being wrapped. The goods themselves will have their own separate HSN codes.

Gift HSN Code