CA Vinod Kaushik
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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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Author Bio
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)
Please advise me
Is it mandatory to mention HSN Code for below 1.5 crore ??
For Filing Of Returns (GSTR-1 and GSTR-2)
HSN CODE for REAL ESTATE BUSINESS
Sir,
what is the GST CODE for retails shop and present rate of GST
what is febrication hsn code
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
Re winding and repairs of Alternators and motors
Sir,
What is the HSN code for supply of Earthern Pit ?
What is the SAC code for making Earthern pit ?
These are electrical related.
WHAT IS THE HSN CODE FOR COMMISSION
WHAT IS THE HSN CODE FOR FACE MASK ??
sir ,
WHAT IS THE HSN CODE FOR CATERING SERVICES UNDER COMPOSITION SCHEME
What is the HSN code and GST Tax for SIGNBOARD (shop name board), notice board, white writing board
civil contractor works what is GST HSN NO
Please inform HSN code for water treatment plant, water pollution control equipment, wastewater treatment plants
What is the hsn code for Fabrication Labour job&With Materail.
WHAT IS THE HSN CODE OF MANPOWER SUPPLY
Sir please give me ( my working styel is flex taken order and printing and materials also purchesed) HSN CODE .Srinivasa raoI
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.
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
PLEASE CLARIFY THE GST HNS CODE OF SAREES, EMBROIDERY SAREES,PRINTING SAREES, HANDLOOM SAREES, PRINTED WITH EMBROIDARY SAREES, LEHANGA IN LUCKNOW
PLEASE CLARIFY THE GST HNS CODE OF SAREES, EMBROIDERY SAREES,PRINTING SAREES, HANDLOOM SAREES, PRINTED WITH EMBROIDARY SAREES, LEHANGA
what are the sac codes related to hotel industry,lokr room tarriff, banquet ,rrestaurant,laundry othe aminities
PLEASE GIVE ME HSN CODE OF CORRUGATED BOX MAKING MACHINES
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.
ss tray hsn code and gst tax
womans unteach clothing .hsn code?
What is the HSN code and GST Tax for SIGNBOARD (shop name board),
flex banner
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
How we put 2 or 4 digits of HSN Code, either from starting digits of HSN Code or Last 2 or 4 Digits of HSN Code?
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.
Required HSN CODE For Punching Die Manufacurer
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
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
sir
what is HSN code for two wheeler products
with regards
satishkumar
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
Old and use machinery HSN CODE please
what is hsn code for rolling shutter grar operating system
what is HSN code for CNC machine (Lathe,Milling) service labour and what is tax percentage.
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.
Is tax for the same HSN number is different for different products ?
what is hsn code for cutting wheel
IN HOTEL – WHAT IS THE HSN CODE IN ROOM INCOME & ROOM SERVICE
What is the HSN CODE & GST CHARGES FOR M.S. GREASE NIPPLES ( USDED IN ELECTRICAL MOTORS )
what is the rate of tax and hsn code of hangers used for curtain
rate of tax and hsn code of hangers used for curtain
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.
PLEASE CLARIFY THE GST HNS CODE OF SAREES, EMBROIDERY SAREES,PRINTING SAREES, HANDLOOM SAREES, PRINTED WITH EMBROIDARY SAREES, LEHANGA.
sir please inform me HSN CODE For packeging machinery like mineral water packing machinery, pharmaceutical packing machinery , juice and soda packing machinery
MEDICINE STORE HSN CODE ???
PLS SEND MEDICINE RETAIL STORE HSN CORD NO