CA Vinod Kaushik

HSN CODES Under GST: CA Vinod Kaushik

What is HSN code?

As per Wikipedia the Harmonised Commodity Description and Coding System, also known as the HSN (Harmonised System Nomenclature) is an internationally standardized system of names and numbers to classify traded products. These codes are basically used to fix rate of tax on various products at the time of export and import. In Indian context it is proposed to use HSN codes at invoice level to make taxation system of international standard. Under GST supply invoices will be made by capturing hsn codes in case of goods and service accounting codes in case of services.

Also Read- GST Enrolment – HSN Codes- Exhaustive List

HSN code of 4 digits for goods:

Though internationally HSN code is of 6-8 digits but in our context HSN code of 4 digits will be mandatory initially for taxpayers having turnover more than 5 crore. Turnover will be taken on self declaration basis for IST year and afterwards turnover of previous year shall be used. In return form rate of tax shall be auto populated based on the HSN codes used in furnishing invoice level purchase or sale information. After completing first year under GST the turnover for previous year will be considered as yardstick for using HSN codes of 4 digits. The use of HSN codes below its standards is to make GST systematic and globally accepted.

HSN code of 2 digits for goods:

For taxpayers with turnover between Rs 1.5 Crores and Rs 5 Crores in the preceding financial year, HSN codes may be specified only at 2-digit chapter level as an optional exercise to start with. From second year of GST operations, mentioning 2-digit chapter level HSN Code will be mandatory for all taxpayers with turnover in previous financial year between Rs. 1.5 Crores and Rs. 5.0 Crores. HSN code at 2 digit will be little easy for taxpayers and make GST an international compatible tax.

HSN codes in case of Export and Import:

HSN codes at 08 digits will be mandatory in case of export and imports. The GST law has to be compatible with international standards. The concept of HSN codes was invented outside India and same is used by various member countries. The above parameters with respect to HSN code for goods and Accounting Code for services will apply for submitting the information in return relating to relevant invoice level information for B2B supplies (both intra-state and inter-state) and inter-state B2C supplies (where taxable value per invoice is more than Rs. 2.5 lakhs).

Benefits of HSN codes:

In case goods and services are identified through their unique codes i.e. international too the chances of misinterpretation are very low. Again the taxpayers are not required to submit description of goods and services tax in return as the same is to be obtained from invoices which are made on the basis of HSN codes and accounting code.

Other important observations:

Though certain limits have been fixed for mandatory use of HSN codes and service accounting code but any taxpayer can use these optionally if he desires. The small classes of dealers who have opted composition scheme are even not required to use HSN codes of 2 digits. The HSN code will be used in case of goods and accounting code will be used in case of services.

Closing comments:

For all B2B transactions (Inter-state and intra-state) invoice level specified details will be uploaded i.e. every invoice issued by the taxpayers will form part of GST return. For all B2C transactions it will be mandatory to upload invoice wise information if it exceeds 250000/-. The level of compliance proposed in GST law seems very systematic but required enough preparation for professionals and taxpayers. At last in my personal opinion the national impact of Bihar assembly election (Defeat of PM Modi) will be little negative for rollout of GST from 01-04-2016.

(Author can be reached  at cavinodkumar67@gmail.com, +91-9953236278)

Disclaimer: Views expressed are strictly personal. The content of this document are solely for informational purpose. It doesn’t constitute professional advice or recommendation. The Author does not accept any liabilities for any loss or damage of any kind arising out of information in this article and for any actions taken in reliance thereon.

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224 Comments

  1. Gopal says:

    Dear ,
    I would like to know that
    what would be hsn code if plastic components manufacture for automobile sector ( Cars and others 4 wheeler s)

  2. HARPAL says:

    sir,HSN CODE 8607 IS FOR RAILWAY PARTS….. FOR SELLING MATERIAL DIRECTLY TO RAILWAY IS UNDERSTOOD THAT WE SHALL CHARGE 5% BUT IF THE SAME RAILWAY PART WE ARE SELLING TO SUB DEALER/MANUFACTURER IN PRIVATE AMERKET WHAT IS RATE OF GST AND UNDER WHCI HSN CODE WE SHALL SELL IT

  3. V. Srinivasa rao says:

    Sir please give me ( my working styel is flex taken order and printing and materials also purchesed) HSN CODE .Srinivasa raoI

  4. devika says:

    Dear Sir,
    Could you please tell me the answer?
    my turnover is below 5 crores,so HSN code is 2 digits, but i entered in GST invoice 8 digits,further we may face any problem regarding filing of GST Returns.

  5. J.Richard says:

    Dear Sir

    We are dealing with import of Wood Working Machines and dealer purchase machine and some of them get Commission , can you kindly provide HSN Code for Commission on sale of Machines

  6. UMESH says:

    PLEASE CLARIFY THE GST HNS CODE OF SAREES, EMBROIDERY SAREES,PRINTING SAREES, HANDLOOM SAREES, PRINTED WITH EMBROIDARY SAREES, LEHANGA IN LUCKNOW

  7. UMESH says:

    PLEASE CLARIFY THE GST HNS CODE OF SAREES, EMBROIDERY SAREES,PRINTING SAREES, HANDLOOM SAREES, PRINTED WITH EMBROIDARY SAREES, LEHANGA

  8. shailendra singh rawat says:

    please confirm HSN code of real estate service :
    1- security charges on plot/flat
    2- water supply charges plot/flat
    3- mutation charges on plot/ flat
    4- incidental charges on plot /flat.

  9. K.Manigandan says:

    Dear Sir,

    We are dealing textile spares equipments we not able to get HSN code for textile spares equipment. So pls if u know that pls send me HSN code details.

    Like : (E.x)

    1. SPIKED LATTICE
    2. BEATER
    3. VEENER ROLLER
    4. COMBER BRUSH
    5. ALUMINIUM BAR
    6. WOODEN LATTICE
    7. CONVEYOR BELT

  10. Rajesh Deshlahra says:

    Is it mandatory to mention HSN Code while billing B TO C, and also inform me that
    Is the tax details in invoice is mandatory in case of B to C billing.

  11. kuppusamy.s says:

    what is the HSN code for solar panels, solar structures, solar inverter, AC Distribution box, DC Distribution box, Clamps, PVC Pipes, Wires, Earthing kit, Bold & nuts. (All Product in Solar related)
    with Thanks
    Kuppusamy.s

  12. Ravi Shanker says:

    Sir we are a industrial valves manufacturer and using 4 digit HSN code on our invoices but one of our dealers is supplying our goods to a company whose turnover is more than 100 cror and he is demanding eight digit code. What is the reply for his question

  13. Satishkumar,K says:

    Sir
    We manufacture and supply TWO WHEELER PRODUCTS . We presume our products fall under chapter 87 with sub head as 14 [ 8714 ] and we desire to know 8 digit code of our product. We had informed to our client that our HSN code would be 8714-1900 however our client informs that 8714-1900 does not exists. Kindly advise us with kind regards > K.SATISHKUMAR

  14. Mr Azad. says:

    Sir. We r a small sub agent of airline tickets. Purchasing from IATA agents & serving our clients by charging Service charge Rs.100 per tkt. Sometime we have to keep deposit with our suppliers for credit & we have to give credit to our parties of one month. Agents do share small amount 1% to 2% on basic from their commision towards our deposit.
    What code we should apply & system of tax.
    Whether we can take credit on input tax.Please guide.us.
    Secondly we book hotels/package on behalf of our clients & add 2% to 5%. We pay full advance & have to give credit to cleients.
    Which code we shaoul apply & what will be procedure of GST . Please.

  15. KM says:

    Multiple supplies in a single invoice (e.g. 3 products supplied under single in voice). A consolidated transportation/delivery expenses charged by supplier on the invoice. How such transportation expenses will be apportioned among different products or shown in GST return by recipient.

  16. SHREE BALAJI SAREES PVT LTD says:

    PLEASE CLARIFY THE GST HNS CODE OF SAREES, EMBROIDERY SAREES,PRINTING SAREES, HANDLOOM SAREES, PRINTED WITH EMBROIDARY SAREES, LEHANGA.

  17. kishor parmar says:

    sir please inform me HSN CODE For packeging machinery like mineral water packing machinery, pharmaceutical packing machinery , juice and soda packing machinery

  18. United Commercial Enterprises says:

    What is The H S N codes number For Stainless steel Fabrication items for kitchens.
    hospitals &Different types of Industrial machinaries
    and Equipments.
    and Electricals Equipment .

  19. Kishor More says:

    we are manufacturer of spare parts for oil separators equivalent to Alfa Laval and westfalia separators.
    My question is : What is the HSN code and GST rate for the spare parts?

    Thanks

  20. vinay tiwari says:

    sir
    greetings
    i am manufacturing of namkeen & sweets to be ghst hsn code .
    kindly let me know the HSNcode of this goods to be filled in form while registering under GST act
    thanks and regards

  21. VIJAY KUMAR MEHRA says:

    We are a small company dealing in water & waste water treatment projects where we normally purchase various equipments for water filtration, softening or demineralization, pumps & motors, tanks, pipe & fittings, valves electrical panels cables, hardwares, chemials, media, steel parts etc. to execute a complete system for water & waste water treatment. We are not awares that our sales invoice of these items falls under which commodity. Would you please advise us.

  22. MANJUNATHA says:

    WHAT IS THE HSN CODES FOR UNDERMENTIONED ITEMS 1 TAILORING MATERIALS

    2 TAILORING MACHINARY AND SPARES

    3 READYMADE GARMENTS,TEXTILE MADE UPs AND HOSIERY
    4 TEXTILES AND FABRICS 5PACKING MATERIALS
    5 MEN’S JOCKETS AND WOMEN’S JOCKETS

    1. roy says:

      Sir,

      What is HSN Code for following items under GST.

      Fabrics,
      Ready made Garments,
      Gift items,
      Leather goods,
      Silk Sarees
      Blanket,
      Quilt,
      Plastic Table Cover,
      Rugs & Carpets

      Thanks

      Roy Varghese

  23. B.G. SHANKARA NARAYANA says:

    Dear Sir, I want to enrol with GST for Medical and general Stores it suits for my client is chapter 98 (98041000, 98049000, 34011110, 34011990 & 30045090) but all these are not accepting it shows no results how to complete this enrolment process kindly let me know.

    Thanks in advance sir,

  24. Satishkumar,K says:

    Respected sir
    We manufacture and supply atuo parts for two wheelers like Honda and TVS. What would be the HSN code for the same under GST HSN code list. We are supplying for local and interstate supplies only.
    Earlier under excise duty we are indicating the Central Excise Tariff Head as 8714-1090 :: Motor Cycles ( including mopeds ) others. Can you kindly enlighten us and give your valuable advise please with kind regards > Satishkumar

  25. SURESH.K.M says:

    WHAT IS THE HSN CODE OF WORKS CONTRACT FOR GST ENROLLMENT IN KARNATAKA FOR KUWS WORK, CIVIL WORK BRIDGE AND CANAL WORK AND ALL TYPES OF WORK CONTRACT

  26. SURESH.K.M says:

    WHAT IS THE HSN CODE OF WORKS CONTRACT FOR GST ENROLLMENT IN KARNATAKA FOR THE BELOW MENTIONED WORKS:
    CIVIL WORK, DRINAGE WORK, BRIDGE & CANAL WORK, CC ROAD WORK, KUWS WORK PLEASE PLEASE SIR

  27. Sandy says:

    Dear sir ,we are selling watches mens watch and women s watch ,on online store ,Flipkart ,Amazon how can we use this code ,and is necessary to us kindly let us know

    1. Lalchand Nahar says:

      Dear Sir
      We are repacking thinner & chemicals (Purchase in 200 Ltr. in Barrel) and packed in 5 Ltr, 1 Ltr. & 500 ML.
      what is HSN Code ????

  28. Lukesh says:

    hsn code of gst in retail medical and general stores(
    veternary ratail, general goods, surgical goods retail)
    pl snd code no. of gst registration
    thanks

  29. Hemalatha says:

    Sir please give some alternative way to find HSN code which can be found through the Commodity code given in VAT registration certificate its too confusing in HSN Code list to select.

  30. RAJESH KHAWLE says:

    1.HSN CODE FOR Work Contractor make of Ploting,
    2HSN CODE FOR Tractor, Spare Parts Purchase & Resale
    3. HSN CODE FOR Interior works
    4. HSN CODE FOR Garments

  31. Chethan says:

    Supply of Boiler with accessories
    Supply of ETP Plant, Ro Plant and STP Plant
    Compressores spares
    Steam pipe line work
    Supply of chemical

    Pls send HSN code

  32. Chethan says:

    Supply of Chemical
    Supply of RO Plant , WTP Plant and ETP Plant
    Supply of Boiler with Accessories
    Steam pipe line work
    Compressores spares

    1. mk says:

      Hey commenters, you can easily find HSN codes when you search the net for e.g. “hsn unstats”. It is public information. No need to ask here.

  33. Kamlesh says:

    Sir
    What is the HSN code for Electrical accessories, Fans, Pvc Pipe fittings, Ind. use cables, MCB, Main Switch, Led Lightings.
    kindly let me know the HSNcode for all this goods to be filled in form while registering under GST act
    Thanks and Regards

  34. Ghan Shyam Dass Rastogi says:

    Please advise HSN CODE FOR PIPESof all varities including MS pipes& fittings.GiPipes & fittings,PVC pipes & fittings,CI pipes & fittings,Ductile pipes& fittings etc Hardware/millstore/locks&keys .mswire.wire nails,ms anglerailing material.Thanks & REGARDS

    1. AJAY RASTOGI says:

      confirm the HSN CODE AND GST RATE AS PER LIST
      1 PAINTS AND COLOR CHEMICAL
      2 GUM
      3 STONE POWDER
      4 PVC COMPOUND
      5 MASTER BATCH
      6 COPPER WIRE
      7 ALUMINUM WIRE
      8 ELECTRONICS AND ELECTRICAL WIRE AND CABLE
      9 IRON WIRE
      10 TIN CONTAINER
      11 PVC COATED IRON WIRE
      12 BOARD BOXES
      13

  35. nirmala says:

    what is below mentioned item HSN code
    1.Rolling shutter manufacture
    2. repair and servicing of rolling shutter
    3 welding work job work
    4.SS. MS , railing work, shed work, plateform work
    5 fabrication work for MS and SS work

    pls send by mail (HSN CODEdetails)

  36. BHAGEERADHAN K says:

    what is HSN code of the followings:
    COLD ROLLED STEEL STRIPS(HARDENED
    AND TEMPERED.
    GI/MS/SS/CR/GP PIPES
    ROOFING SHEETS(ALUMINIUM/GI /ETC)
    CR/HR/SS/SHEETS/
    HARDWARES/ BANDSAW BLADES/WOOD
    WORKING TOOLS/MACHINERY/PAINTING BRUSHES/ROLLERS/MASKING TAPES ETC.

  37. M.S.Sankameswaran says:

    We are doing sheet metalparts on job work for lift, elevator,automobiles and electrical items. We also manufacture the above items on sale basis. We are also manufacturing pumps both motor and engine driven for agricultural and other applications. Please give the HSN code for above items.

  38. VIREMDRA PADALIA says:

    What is the HSN Coad of cotton sarees, handlooms sarees, silk sarees, synthetic sarees, shuting and shirtings , laungies, Dothies, cotton material, shalls,

  39. RAVI R V says:

    What is HSN Code No.for
    1. JOB WORK ( Labour Charges & Piece work Contract)
    2. Panel Assembaly Job work.
    3. Panel Wiring Job work
    4. Welding Job Work
    5. Al. & Copper Bus Bar Job Work.

  40. NOUSHAD AHAMMAD says:

    SIR WE ARE REQUEST TO FOLLOWING HSN CODES PLEASE REPLY
    1.MOSQUITONETS (MADE IN HDPE METERIAL)
    2.COIR PRODUCTS MADE FOR COCO FIBER
    3.NAWAR(PLASTIC AND COTTON)
    4.KORAI MATS(MADE GRASS)
    5.PACKING SUTLI(MADE RE PROCESING METERIAL)

  41. Rishab says:

    What is the HSN Coad of cotton sarees, handlooms sarees, silk sarees, synthetic sarees, shuting and shirtings , laungies, Dothies, cotton material, shalls,

  42. HANUMANTHA REDDY says:

    WHAT IS THE HSN CODES FOR UNDERMENTIONED ITES 1TAILORING MATERIALS 2TAILORING MACHINARY AND SPARES 3READYMADE GARMENTS,TEXTILE MADE UPs AND HOSIERY 4TEXTILES AND FABRICS 5PACKING MATERIALS

  43. RAJIV GULATI says:

    Sir,
    Please help me in locating the HSN code for Allopathic Medicines, Baby food, Animal Food, Food Supplements, Cosmetics & Contraceptives dealt by our client

  44. jai hind says:

    please give me HSN code for GST registration
    1. Audio Video & Lighting control system
    2. LCD/LED Display
    3. Interactive Board
    4. Electronic Item
    5. IT

  45. prem kumar garg says:

    sir
    greetings
    i am manufacturing radiator core to be fitted in radiators for tractors and harvesters. my turnover is below one crore
    kindly let me know the HSNcode of this goods to be filled in form while registering under GST act
    thanks and regards

  46. krishna kumar dewangan says:

    HSN COAD FOR COMDITI PVC PIPE PVC WATER TANK BUILDING MATERIAL AND INDUSTRIAL MACHINES AND MACINERY PART HSN CODE GIVE ME

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